View source for Insurance cover note

{{infobox4
|list1=
<ul>
<li>[[Dangerous goods declaration]]</li>
<li>[[Floater policy]]</li>
<li>[[Indemnity bond]]</li>
<li>[[Loss adjustor]]</li>
<li>[[Guaranteed renewable]]</li>
<li>[[Accident policy]]</li>
<li>[[Teleworking]]</li>
<li>[[Special resolution]]</li>
<li>[[Educational fund]]</li>
</ul>
}}
'''[[Insurance]] cover note''' is a temporary document provided by an insurance [[company]], which is a proof of insurance coverage. The document is issued for a specified time until the final insurance proof is given. Cover note contains personal data of the insured and what is covered with an insurance policy<ref>Clark J. (2013)</ref><ref>Sethi J., Bhatia N. (2012)</ref>.

==Purpose of cover note==
Cover notes are provided because of several causes they are helpful:
* '''Negotiations'''
There is usually no problem when it comes to get an insurance policy for an average citizen, because their applications are often similar and the [[risk]] of loosing [[money]] is low. When the application comes from a big company, or the insured sum is bigger than average, it is profitable for the insurance company to negotiate terms and conditions of policy. Risk which is naturally related to big insurance policies must be calculated before any final decisions. As the [[audit]] of application takes some time, the applicant usually can not wait for the final insurance policy. A cover note allows him to use the subject of application, as the cover note contains some proofs of insurance<ref>Sethi J., Bhatia N. (2012)</ref>.
* '''Using subject of application earlier'''
When the application for insurance policy begins, it is convenient for the applicant to get a cover note. As the cover note contains proof of insurance, it is possible to make a use of the subject of insurance application, before getting the final insurance policy. The best example of this cause is the application for car insurance. Cover note gives the owner of the car a proof of insurance and allows him to drive it before the application [[process]] is finished.
* '''Partial insurance policy'''
Cover notes are issued when the negotiations for insurance are underway, and some parts of the policy are fully prepared. It allows the insurance company to serve the [[client]] with the best [[service]] as they can [[work]] on more complicated parts of policy<ref>Sethi J., Bhatia N. (2012)</ref>.
* '''Insurance of ware'''
In the trade [[industry]], time is one of the biggest valuables. As the orders for [[transport]] and other services often come suddenly, it is needed to prepare the shipment quick and protect it with insurance. Cover notes let trading companies provide their services without wasting time on wiating for full insurance<ref>Carr I., Stone P. (2014)</ref>.

==Differences between cover note and full policy==
Cover notes are documents provided by insurance companies for the short time between application for the policy and granting a full coverage. As the documents are simplified forms of full policy, they contain only general data of insured. A common practice of insurance companies is to prepare those kind of documents as a template. So that, cover notes usually does not contain [[information]] about every details of bought insurance policy. Other thing which does not grant the insured full rights to the policy is difference of terms of policy and terms of cover note. Client with cover note should be aware that the cover note can not cover some terms and conditions negotiated with the insurance company<ref>Merkin R. (2014)</ref>.

==Examples of Insurance cover note==
* A cover note issued for a car insurance policy is a document which contains the details of the insured vehicle, the type of coverage and its duration. It also contains the policy number, details of the insurance company, the premium amount and other relevant details.
* A cover note issued for a travel insurance policy is a document which contains details of the insured individual, the type of coverage and its duration. It also contains details of the insurance company, the premium amount and other relevant details.
* A cover note issued for a health insurance policy is a document which contains the details of the insured individual, the type of coverage and its duration. It also contains the policy number, details of the insurance company, the premium amount and other relevant details.

==Advantages of Insurance cover note==
Cover note is a helpful document that provides an assurance of the insurance coverage for the insured. It holds some advantages such as:
* It serves as a proof of insurance until the insurance policy is issued. It is usually issued within 24 hours of the premium payment.
* It allows the insured to start using the benefits of the insurance policy even before the policy is issued.
* It helps the insured to have financial protection in case of any unexpected events such as accident or illness.
* It helps to reduce the processing time of the insurance policy as the cover note is issued quickly.
* It helps to save money as the cover note can be issued at a lower cost than the full policy.
* It helps the insured to avoid legal hassles and potential losses in case of any unforeseen event.

==Limitations of Insurance cover note==
An insurance cover note is a document that provides temporary proof of insurance coverage, but it has certain limitations. These include:
* It is only a temporary document until the final insurance proof is issued and does not provide the same level of coverage as a full policy.
* It does not provide any protection against legal action, as it is not legally binding.
* It does not cover any additional risks that may arise, such as damage to third party property.
* The cover note will be expired in a specified time frame, after which the policy must be renewed, or a new policy taken out.
* It is important to read the small print of an insurance cover note to ensure that all coverage is clearly understood.

==Other approaches related to Insurance cover note==
An Insurance cover note is a temporary document that provides proof of insurance coverage. Other approaches related to the cover note are: 
* Obtaining quotes - The insured should obtain quotes from various insurance companies to compare the benefits and coverage of each policy.
* Understanding the policy - It is important to understand the policy before purchasing a cover note, as it will outline the risks and benefits associated with the policy.
* Purchasing the policy - Once the policy has been chosen, the insured should purchase the cover note and make the necessary payments.
* Keeping the cover note - It is important to keep the cover note in a safe place as it is the proof of insurance coverage.

In summary, an Insurance cover note is a temporary document that provides proof of insurance coverage. The insured should obtain quotes, understand the policy, purchase the policy and keep the cover note in a safe place.

==Footnotes==
<references/>

==References==
* Carr I., Stone P. (2014), [https://books.google.pl/books?id=0gc3AgAAQBAJ&pg=PA404&dq=insurance+cover+note&hl=pl&sa=X&ved=0ahUKEwiyrczFhYbmAhVLpYsKHd16DQcQ6AEIPTAC#v=onepage&q=insurance%20cover%20note&f=false ''International trade law''], Routledge, UK, United States
* Clark J. (2013), [https://books.google.pl/books?id=s6KOAwAAQBAJ&pg=PT90&dq=insurance+cover+note&hl=pl&sa=X&ved=0ahUKEwjq8pf0hIbmAhVywosKHUgGBx44ChDoAQgoMAA#v=onepage&q=insurance%20cover%20note&f=false ''International dictionary of insurance and finance''], Routledge, UK, United States
* Merkin R. (2014), [https://content.taylorfrancis.com/books/download?dac=C2011-0-18279-6&isbn=9781317912866&format=googlePreviewPdf ''Insurance law: An introduction''], Routledge, UK, United States
* Sethi J., Bhatia N. (2012), [https://books.google.pl/books?id=r0VV_f05rl4C&pg=PA326&dq=insurance+cover+note&hl=pl&sa=X&ved=0ahUKEwjFxJCdq4PmAhUptYsKHf9iCJMQ6AEIPTAC#v=onepage&q=insurance%20cover%20note&f=false ''Elements of banking and insurance''], PHI Learning, India

[[Category:Insurance]]
{{a|Anna Marzec}}