Monoline Policy

Definition - What does Monoline Policy mean?

A monoline policy is one that offers coverage for one specific financial risk. These types of policies are mostly issued by companies that specialize in particular risks, as opposed to typical insurance companies that sell insurance covering multiple risks.

Insuranceopedia explains Monoline Policy

An insurance company either sells a single line (monoline) or multiple lines. A single line focuses on one specific insurable risk while multiple lines sell insurance (called packaged policy) that covers many risks under one policy.

For instance, a monoline policy for homeowners may only include coverage for liability. So, unlike standard homeowners insurance, it doesn't cover loss or damage to property.

There are, however, advantages to purchasing a monoline policy. One of them is that the people selling it are so specialized in the product that delivering what it promises (coverage upon realized risk) tends to be more efficient. It can also cost less compared to bundled policies.

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