Pronunciation: [kˈɔ͡ɪnʒə] (IPA) 
The word "coinsure" refers to sharing the risk of an insurance policy with another party. It is spelled with the prefix "co-" meaning "together" and the verb "insure". The stress is on the second syllable, /ɪnˈʃʊər/. The sound in the first syllable is the short "i" sound, /ɪ/, while the second syllable has the "sh" sound, /ʃ/, and the "uh" sound, /ə/. The final syllable is pronounced as /r/, with a silent "e".
"Coinsure" is a term commonly used in the insurance industry referring to a practice where multiple insurance companies share the risk by jointly insuring a policy or particular loss. More specifically, it represents a situation in which two or more insurers are involved in insuring the same property, person, or risk, thereby dividing the liability and spreading the financial burden among them.
In coinsurance, each insurer agrees to assume a portion of the risk and indemnify the policyholder according to their respective percentage of coverage. This approach is often employed when a risk exceeds the capacity of a single insurer or when it is considered beneficial for multiple insurers to contribute their expertise in managing the risk. Coinsurance usually requires insurers to share both the premiums and claims costs, proportionate to their agreed percentages.
The rationale behind coinsurance lies in the principle of spreading the risk, ensuring that no single insurer shoulders the entire liability and financial consequences alone. This practice encourages collaboration and risk diversification among insurers. By sharing the risk, coinsurance can offer policyholders broader coverage options, higher limits, and increased capacity for insurable risks.
It is important for policyholders to carefully review the terms and conditions of a coinsurance agreement to fully understand their obligations, as failure to comply with the agreed percentage can result in reduced claim payments or additional penalties. Coinsurance is commonly encountered in commercial insurance policies, particularly in property insurance, where it allows insurers to provide coverage for high-value assets without shouldering the full risk individually.
The word "coinsure" is derived from the combination of two separate terms: "co-" meaning "together" or "with", and "insure" which comes from the Latin word "securus" meaning "safe" or "secure". "Insure" is related to the Latin word "assurare" which means "to assure" or "to give security".
When these terms are combined, "coinsure" is formed, which means to jointly or collectively provide insurance coverage or share the risk of something with another party.
