Which document describes the relationship between an insured and an insurance company?

The document that best describes the relationship between an insured and an insurance company is the insurance policy. An insurance policy is a legally binding agreement that outlines the terms, conditions, and responsibilities of both the insurer and the insured. It serves to clarify the coverage provided, the duties of the policyholder, the limits of liability, and the procedures to follow in the event of a claim.

The insurance policy articulates what is covered, what is excluded, and the stipulations that govern the relationship. This document ensures that both parties understand their roles and obligations, thus regulating how risks are managed and claims are processed.

In contrast, while an indemnity contract may focus on the principle of indemnity—ensuring that the insured is restored to their financial position prior to a loss—it does not encompass the full scope of the relationship between the parties. An endorsement modifies the terms of an existing policy but does not define the relationship itself. Terms of coverage specify the details of what is covered but lack the broader context of how the insurer and insured interact overall.