Deductible

Published 2026-06-12 · by Brokly

In plain terms: The amount of a covered loss you pay out of your own pocket before the policy pays the rest.

Why it matters to you

A higher deductible trades a lower premium for more risk on your side of the line — the right setting depends on what your cash flow can absorb the week something breaks. Small-business liability policies often carry no deductible at all; property and auto usually do.

Where you’ll see it

On the declarations page, set per coverage — and in every quote comparison, where a cheaper premium sometimes just means a bigger deductible.

Related terms

Definitions describe how policies are typically structured — exact terms live in the policy. Not legal or compliance advice.