Key facts
- Terms are listed alphabetically.
- Definitions are general. Your policy wording decides what applies to you.
- Ask your broker to walk through any term that affects a claim.
- Accident benefits (SABS)
- Ontario's no-fault benefits for medical care, rehabilitation and income support after a car accident, paid by your own insurer whoever caused the crash. Ontario changed its rules on July 1, 2026, and some benefits became optional.
- Actual cash value (ACV)
- The value of an item today, after subtracting age and wear. Some policies pay ACV instead of replacement cost.
- Additional insured
- A person or company added to your liability policy for certain work, often because a contract requires it.
- All perils
- A coverage that pays for damage from any cause unless the policy excludes it.
- At-fault claim
- A claim where your insurer decides you were mainly responsible. It can raise your premium.
- Broker
- A licensed professional who compares insurers for you and works for you, not for one insurer.
- Business interruption
- Coverage that replaces lost income and pays ongoing costs while a covered loss keeps you closed.
- Certificate of insurance
- A one-page proof of your coverage that clients or landlords may request. It is not the policy.
- Collision
- Coverage for damage to your vehicle from a collision, less your deductible.
- Commercial general liability (CGL)
- Business liability coverage for injury or property damage you cause to others, plus legal defence costs.
- Comprehensive
- Coverage for damage to your vehicle from causes other than collision, such as theft, fire, vandalism and hail.
- Completed operations
- Liability for claims arising from work you finished or products you sold.
- DCPD (direct compensation property damage)
- The Ontario system where your own insurer pays for damage to your vehicle when the other driver is mainly at fault.
- Deductible
- The amount you pay yourself before insurance pays the rest of a claim.
- Endorsement
- A change or add-on to a policy that adds, removes or alters coverage.
- Exclusion
- Something the policy does not cover.
- Facility Association
- The industry pool that provides auto insurance in Ontario to drivers who cannot get it in the regular market.
- FSRA
- The Financial Services Regulatory Authority of Ontario, which regulates insurers and many insurance practices in Ontario.
- Hard-to-place risk
- A person, property or business that standard insurers decline.
- Loss of rents
- Coverage for rent you cannot collect while a rental is being repaired after a covered loss.
- MGA (managing general agent)
- A company that underwrites insurance for insurers, often for specialty or hard-to-place risks.
- Minor conviction
- A less serious traffic conviction, such as a small speeding ticket. It can still affect your price.
- Named insured
- The person or business named on the policy.
- Named perils
- A coverage that pays only for causes of loss listed in the policy.
- Non-owned auto
- Liability coverage for vehicles you do not own, such as an employee's car used for work or a rental.
- OAP 1
- The standard Ontario Automobile Policy for personal vehicles.
- OPCF
- An Ontario Policy Change Form, an official endorsement that changes an auto policy.
- OPCF 43
- An endorsement that limits the depreciation deducted after a total loss on a newer vehicle.
- OPCF 44R
- Family protection coverage that adds protection when an at-fault driver has only minimum liability limits.
- Premium
- The price you pay for a policy.
- Rebuilt vehicle
- A vehicle that was written off and repaired, and then passed an inspection to be back on the road.
- Replacement cost
- Coverage that pays to replace an item with a new one, without subtracting age and wear.
- RIBO
- The Registered Insurance Brokers of Ontario, the regulator that licenses insurance brokers in Ontario.
- Short-rate cancellation
- A cancellation where the insurer keeps a penalty from the unused premium, common when you cancel your own policy.
- Subrogation
- The insurer's right to recover what it paid from the person who caused the loss.
- Tenant insurance
- A policy that covers a tenant's belongings, liability and extra living costs.
- Third-party liability
- Coverage for injury or property damage you cause to other people.
- Umbrella liability
- Extra liability coverage that sits on top of your home, auto or business policies.
- Uninsured automobile coverage
- Protection if you are hurt or your vehicle is damaged by a driver with no insurance or who cannot be identified.
- Vacancy clause
- A policy condition that limits coverage when a building is empty for a set period.
- Waiver of subrogation
- An agreement that stops your insurer from pursuing a party who is at fault, often required by contracts.
- Water and sewer backup
- Optional coverage for damage when water or sewage backs up through drains or sump pumps.
FAQ
Questions Ontario clients ask
AB
About the broker
Abhishek Bedwal · RIBO Certified Insurance Broker
Abhishek is a Registered Insurance Broker of Ontario (RIBO) licensed across the province, with local expertise across Durham Region, Ottawa, Niagara Falls, Brantford and Windsor. Coverage is placed through The Insurance Lab, a division of BrokerUnion, giving clients access to 20+ Canadian insurers so the policy fits the risk — not the other way around.
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