- Cover
- The purchase of a contract to offset a previously established short position. The New York Times Financial Glossary
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1. INSURANCE insurance against losing something or suffering damage, injury etc:• The policies provide cover for death of the policyholder.
• You have to pay an extra premium to have insurance cover on your personal possessions.
insurance from a British insurer that covers vehicles and goods while they are in other European countries see• insurance cover of up to £5000 per item for loss or damage
3. FINANCE BANKING something valuable, for example property or an insurance policy, that you promise to give to a bank or someone who has lent you money if you fail to pay the money back; = COLLATERAL; SECURITYˈinterest ˌcoverFINANCE ACCOUNTING a company's income in relation to the interest payments it has to make on the money it has borrowed4. BANKING the amount of notes and coins kept by a bank to meet the needs of its customers — see also dividend cover1. INSURANCE when an insurance policy covers someone or something, the insurance company will pay out money if the person dies or is injured, or if something is damaged, stolen etc:• You are not covered by your medical insurance if an accident happens abroad.
cover somebody against something• Our optional Payment Protector plan covers you against loss of income in the event of sickness, accident or compulsory redundancy.
2. if an amount of money covers something, it is enough to pay for it:• It took a massive $1.68 billion pretax charge to cover losses from bad loans.
3. BANKING FINANCE if an institution covers a loan, it makes sure that it has something valuable, for example property or an insurance policy, that it can keep if the loan is not repaid:• Many of these banks' loans no longer have collateral that covers the amount of the loan.
4. FINANCE to obtain and pay for a currency, bonds, shares etc that are needed to make a sale that has been agreed, for example in a futures contract:• The price of zinc for immediate delivery rose sharply because Chinese zinc producers that had sold short had to cover their positions.
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Ⅰ.cover UK US /ˈkʌvər/ verb► [T] to include or deal with something: »The seminars cover such topics as making an impact at interview, employability, and what companies are looking for.
»Have I covered all your questions?
► COMMERCE to serve customers in a particular area: »Our delivery service covers the entire metropolitan area.
► [T] FINANCE to be enough money to pay for something: »My wife earns enough to cover the mortgage.
»We only sold enough to cover our costs - we made no profit at all.
»The amount was not sufficient to cover all his debts.
»The government's guarantee will cover the first £50,000 of people's savings.
► [I or T] INSURANCE to protect someone or something against loss, damage, accident, etc., by insurance: »The policy covers employee and public liability, equipment loss, materials, and personal accidents.
cover (sb) against/for sth »In general, buildings insurance covers (you) against damage to the house itself and outbuildings such as conservatories and greenhouses.
► [T] to protect yourself from being blamed for something: cover yourself (against something) »Always inform a senior colleague of your intentions, in order to cover yourself against accusations of bullying.
► [T] FINANCE if a financial organization can cover a loan, it is protected against loss by having enough collateral (= property that a person borrowing money agrees to give to the organization if they fail to pay the debt): »The approval for a home equity loan is usually easy as the lender has collateral to cover the loan amount.
► [T] FINANCE, STOCK MARKET to buy shares, currency, etc. that you have arranged to sell in the future, especially if the price is rising and you had expected it to go down: »Tokyo stocks advanced 1.1% Thursday as futures rose and investors scrambled to cover short positions.
► [I or T] HR to do someone else's job when they are absent: cover (for sb) »We are expected to cover for each other if someone is absent or is late arriving in the morning.
»While he was on sick leave, a colleague covered his job.
Ⅱ.cover UK US /ˈkʌvər/ noun► [C] the stiff outside part of a book or magazine: »She became the first woman to appear on the cover of Business Week.
► [U] UK (US coverage) INSURANCE financial protection against loss, damage, injury, etc., which an insurance company sells: health/liability/life/travel cover »A firm employing staff needs to have employers' liability cover.
buy/get/take out cover (for/against sth) »Homeworkers can get insurance cover for copiers and faxes but premium costs vary widely.
provide cover (for/against sth) »The policy provides cover for loss or damage to property owned by the insured.
»For a small additional premium, you can increase this cover to £100,000.
► [U] FINANCE the fact of being enough to pay for something: »The property that is being offered as collateral will be sufficient cover for the loan amount.
► [U] HR the situation in which someone does someone else's job when they are absent: »Employees need cover for days they have to stay home to care for sick children.
→ See also CONTINENTAL COVER(Cf. ↑continental cover), CONTINENTAL COVER(Cf. ↑continental cover), DIVIDEND COVER(Cf. ↑dividend cover), FORWARD COVER(Cf. ↑forward cover), INTEREST COVER(Cf. ↑interest cover)
Financial and business terms. 2012.
