1. Insurance Terms & Definitions/
  2. Insurance Terms Starting With L

Licensed and Insured

What is Licensed and Insured?

Licensed and Insured may refer to any individual or business that has been granted a license to operate or conduct business legally and has purchased insurance to protect against potential losses.

Licensed and Insured in More Detail

A “license” is a legal document that grants permission to an individual or business to conduct a specific type of activity or business legally. Different types of licenses may be required for different types of activities, such as a driver’s license to operate a motor vehicle or a business license to sell certain products.

“Insurance” is a type of contract between two parties — an insurance company and an individual or business — that provides financial protection against potential losses due to an event or incident. Insurance policies usually come with a fee, known as a premium, that must be paid in order to maintain coverage.

By being licensed and insured, individuals and businesses have the assurance that they are legally able to conduct their activities and are protected against potential losses due to certain events or incidents. For example, a business that is licensed and insured can feel confident that they are in compliance with the law and have the financial protection they need in case of a lawsuit or other unexpected expenses.