Define: Overinsurance

Business, Legal & Accounting Glossary

Definition: Overinsurance


Quick Summary of Overinsurance


Insurance (from two or more policies) that exceeds the value of the item being covered.



What is the dictionary definition of Overinsurance?

Dictionary Definition


A situation where an insured party has bought so much coverage that it exceeds the actual cash value (or the replacement cost) of the risk or property insured. For the insurance company, overinsurance constitutes a moral hazard because the insured (overinsured) may be tempted to make a false claim to profit from a loss.


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https://payrollheaven.com/define/overinsurance/
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Overinsurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 06, 2020 https://payrollheaven.com/define/overinsurance/.
Chicago Manual of Style (CMS):
Overinsurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/overinsurance/ (accessed: April 06, 2020).
American Psychological Association (APA):
Overinsurance. PayrollHeaven.com. Retrieved April 06, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/overinsurance/

Definition Sources


Definitions for Overinsurance are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 14th January, 2020