Some insurers may define only a few key words. Others give special meaning to a long list. Although all defined words, terms, and phrases should be given special attention when evaluating coverage, those discussed in this section appear in nearly all policy forms, often with significant differences in their definitions. Always review all definitions carefully—they significantly affect the scope of coverage provided by the policy.

Careful attention is also needed to ensure that defined words, terms, and phrases—along with other policy terms and conditions—remain consistent through various layers of coverage, such as where a primary and one or more excess policies are utilized. Such consistency is critical, as inconsistencies in defined terms between primary and excess policies can become the basis of coverage disputes—and even litigation—with insurers.