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What Is a Deductible?

An insurance deductible is the amount you need to pay before your coverage will kick in to cover a claim.

This arrangement shares the financial risk between the insured and the insurance company.

Deductible definition.

How Does a Deductible Work?

If you make a claim on an insurance policy that has a deductible, you must pay that amount before your coverage will cover the rest of your financial responsibility to the claimant.

Depending on the policy, you will either make a payment directly to your carrier or the deductible amount will be subtracted from the claim payment.

What Is FLIP’s Deductible?

Food Liability Insurance Program (FLIP)’s basic general liability policy does not have a deductible. However, the optional Inland Marine (Tools and Equipment) coverage has a $250 deductible.

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