What is a Premium? What is a Deductible?
Disclaimer: the deductible amounts disclosed in this video are current to April 2020 and are subject to change.
What is an insurance premium?
An insurance premium is the amount of money an individual or business pays for an insurance policy. Premiums are collected and kept in reserve in order to pay out claims as they arise. The insurance company must anticipate how much premium they will need to collect in order to have the funds available to pay out losses when they occur. In layman’s terms, they have to make an educated guess.
Wondering why your premium has changed? Well, the changes in premiums this year are a reflection of the overall loss ratio on the insurance program. In order for an insurance program to remain viable, the amount paid out in losses cannot exceed the amount collected in premiums.
What is an insurance deductible?
A deductible is the amount of the loss that you are responsible for covering before the insurance policy will respond. Say you have a USB drive stolen. Replacing it would cost $60, but your deductible is $350. Although, “technically” the claim would be covered, it is below your deductible, so the insurance company wouldn’t be responsible for paying any part of the claim.
Another example: you drop your camera, but it only costs $200 to fix. Although it is the kind of damage that would be covered under the policy, you are responsible for the first $350 of the loss. In this case, again, the insurer would not have any responsibility to pay the claim, because the expense was not more than the $350 deductible.
If you damage a $500 lens, though, you would pay for the first $350 (your deductible), then the insurance company would cover the next $150.
A review of the Front Row online insurance program deductibles (in Canadian dollars):
Photography insurance (photographer.frontrowinsurance.com) deductibles:
- Equipment deductible: $350 per occurrence
- Photographer’s Enhancement Pack deductible: $500 per occurrence
- Theft from an Unattended Vehicle deductible: $2,500 per occurrence
- Outside Canada and United States of America (“Out of Country”) deductible: $750
- General Liability deductible: $500 per occurrence
The deductible applies to any one incident, not per item. Only one deductible, whichever is highest, would apply per claim.
DigiGear insurance (digigearinsure.frontrowinsurance.com) deductibles:
- Owned Mobile Equipment - $1,000
- Owned Fixed Equipment - $1,000
- Rented Equipment - $1,000
- Lessors' Contingency Coverage - $1,000
- Commercial General Liability - $1,000
Short Shoot insurance (shortshoot.frontrowinsurance.com) deductibles:
The rented equipment deductible is $1,500 per event. This applies to any one incident, not per item.
Musical instrument insurance (musicians.frontrowinsurance.com) deductibles:
The equipment deductible is $250 per claim. Again: This applies to any one incident, not per item.
SOLO Theatrical Insurance (stagelive.frontrowinsurance.com) deductibles:
The deductible for Each Occurrence is $500.
Event insurance (events.frontrowinsurance.com) deductibles:
- Rented Equipment Coverage: $500 Per Claim
- Rented Tents/Marquees: $250 Per Claim
- Wedding Enhancement Package Coverages: $250 Per Claim
- Birthday Party / Bar/Bat Mitzvah / Anniversary Package Coverages: $250 Per Claim
- Cancellation Coverage: None
- General Liability, Each Occurrence: $500 for claims of Bodily Injury / Property Damage
- Tenant Legal Liability: $500 Per Claim
Workplace Office insurance (workplaceinsure.frontrowinsurance.com) deductibles:
There are various deductibles under the Workplace policy. The deductible will depend on the coverage. For example, the deductible for theft of office property is $500.
Cyber Hack insurance (hackinsure.frontrowinsurance.com) deductibles:
A basic cyber insurance policy would generally come along with a $1,000 deductible.
Get Insurance with Front Row
Whether you’re interested in film insurance, photography insurance, event insurance or another insurance product, consider Front Row Insurance for your insurance needs.