What are the costs covered by insurance policies after incidents termed as?

The costs covered by insurance policies following incidents are often referred to as insured costs. This terminology specifically describes the financial burdens that an insurance policy will address, providing compensation to the insured party as outlined in the policy terms.

Insured costs typically include elements such as property damage, liability claims, and medical expenses resulting from incidents covered under the policy. By having insurance, organizations can mitigate the financial impact of unexpected events, preserving their operational capabilities and financial integrity.

Other terms like direct costs, indirect costs, and uninsured costs may relate to various aspects of financial management and incident fallout, but they do not specifically denote the costs actually covered by an insurance policy. Direct costs may refer to expenses that can be directly attributed to an incident, while indirect costs encompass broader economic impacts such as loss of productivity, none of which are guaranteed to be covered by insurance. Uninsured costs indicate expenses not covered under any existing insurance policy and would need to be managed out-of-pocket by the organization.