What's really important to understand about Insurance generally is that it covers the unforeseen - things you don't know about or aren't expecting to happen. Crucially, we can expand this to say:
" Insurance covers events that are unforeseen at the time you purchased your policy."
Everything has what can be thought of as an underlying element of risk. When you do even the most mundane of things, there may be some risk involved and everyone makes a decisions as to whether or not they will continue and accept the risk.
Some things are more risky than others, and that's where insurance comes in. Insurance essentially accepts the risk involved in an activity or circumstance on your behalf in return for a much smaller value than you would incur if the worst was to happen. You don't want to pay the full value of your car should it be stolen, and neither do thousands of other people, so an insurance company will accept the risk something might happen in return for what it calculates is a fair amount of money to cover that risk. If a lot of people pay small amounts for their insurance policies, the insurance company can pay out much larger amounts for the small amount of people who do need to claim.
Within Cover-More travel insurance policies, there are a couple of words that you need to be aware of and you may occasionally here us mention as it really affects your coverage.
Relevant Time : This refers to the date you purchased your Policy.
Risk: The likelihood that something may or may not happen.
Reasonable Care: Behaviour, actions or inactions that will increase the underlying risk in a given scenario.