An INSURANCE contract where the INSURER provides the INSURED with complete coverage of a RISK exposure in exchange for a larger PREMIUM. It can be considered a contract of maximum RISK TRANSFER, and is characterized by a small (or no) DEDUCTIBLE, large POLICY CAP, limited (or no) COINSURANCE, and limited (or no) EXCLUSIONS. Such a policy is most suitable for extremely risk averse companies or individuals. See also PARTIAL INSURANCE.

More On This Topic

Link to This Definition
Did you find this definition of FULL INSURANCE helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary