Insurance Glossary

WAIVER

The voluntary surrender of a right or privilege. In life insurance, a waiver provision may allow coverage to remain in force without premium payments under certain conditions, such as disability.

WAR RISK

Special insurance coverage for cargo shipped overseas against risks such as government confiscation during wartime. War risk coverage is excluded from standard ocean marine policies and must be purchased separately.

WATER-DAMAGE INSURANCE COVERAGE

Coverage in most homeowners policies for sudden and accidental water damage, such as burst pipes. Damage from floods or lack of maintenance is excluded and requires separate coverage.

WEATHER DERIVATIVE

A financial or insurance product used by businesses to hedge against losses caused by weather-related fluctuations in demand or revenue.

WEATHER INSURANCE

A form of business interruption insurance that compensates for financial losses caused by adverse weather conditions affecting planned events or operations.

WHOLE LIFE

A type of permanent life insurance that provides lifetime coverage and includes a cash value component with fixed and guaranteed premiums.

WORKERS COMPENSATION

Insurance coverage that pays medical expenses, rehabilitation costs, and partial wage replacement for employees injured or made ill in the course of employment, as required by state law.

WRAP-UP INSURANCE

A comprehensive insurance program that provides liability coverage for multiple contractors and businesses working on a single large project.

WRITE

To issue, underwrite, or accept an application for insurance coverage.