Coverages and coverables

A coverage is protection from a specific risk. A coverable is a covered object such as a house or vehicle. In PolicyCenter, coverages attach only to coverables.

Coverable

A coverable is an exposure to risk that can be protected by the policy. A coverable may be a tangible property item, a location, a jurisdiction, or the policy itself. Within PolicyCenter, Guidewire makes the policy line a coverable to represent the named insureds. Coverages attach only to coverables. You can further subdivide coverables into property coverables and liability coverables.

Property coverables are things with physical attributes (height, weight, value, construction type, and age, for example).
Liability coverables are operations that you typically represent with class codes (coal mining or personal auto operation, for example).

Coverage

A coverage is protection from a specific risk. A coverage must be attached to a coverable. Coverages, like coverables, also are divided into two types: property and liability. For example, on an auto policy, a collision property coverage protects the insured’s vehicle and a liability coverage protects the driver for damage done to someone else’s vehicle. Automobile liability coverage does not insure the vehicle. Rather, it insures its operation.

Using a car as an example to illustrate the different types of coverage:

Risk	Coverage	Coverable
Theft	Property	The coverable is the car and the type of loss is theft.
Collision	Property	The coverable is the car and the type of loss is damage from collision to the vehicle owned by the insured.
	Liability	The coverable is the policy. Liability coverages covers damage to other vehicles and their occupants.

Each PolicyLine contains one or more coverable entities and one or more coverages.