(1) A deductible provision sometimes used in business
interruption (BI) and other time element policies, in lieu of a dollar amount
deductible, that establishes that the insurer is not responsible for loss
suffered during a specified period (such as 72 hours) immediately following a
direct damage loss. (2) A deductible mechanism in disability
income policies and under workers compensation statutes that establishes a
period that must pass following an accident or illness causing disability
before salary continuation benefits are payable.