Simply put, cover means you are taking a bet and, at the same time, you are providing some protection against the unexpected loss of the bet. To most people, cover sounds a bit like insurance, but it is a little different. With insurance, you are paying a premium to protect yourself against the risk of a random incident. With cover, you are making a wager with the objective of profiting from the outcome. For example, if you bet on a horse race and that horse loses, you will have gained nothing because you were out of pocket. You are then left with the unpleasant task of trying to recover your original investment.
In horse racing, sports betting, and various other games of chance, the term cover often appears in the form of what is known as the ‘layperson’s cover’. This form of cover is often accepted by the sportsbooks and other governing bodies as a legitimate way to hedge bets without having to pay out massive winnings to those involved in the game. Essentially the layperson’s cover allows those betting on the game to lay their bets with minimal concern for the outcome. When a bet is laid down, additional funds are then made available for the player’s benefit. These are what are known as ‘push funds’.
What Does Cover Mean In Betting?
The Difference Between Insurance And Cover
The key difference between insurance and cover is that with insurance, you are protecting yourself against a risk that you have predetermined will happen. With cover, your objective is to profit from the unexpected and the risk-free.
In the example above, if you insure yourself against the loss of the bet, you will still have to cover yourself against the possibility that the horse might win. This is the part that makes insurance and cover mutually exclusive. If you win, you profit from the insurance win; if you lose, you lose your investment. The key difference is that with cover, you are still in the same position whether you win or lose. This is in contrast to an insurance win which usually results in a large financial gain and an insurance loss which often results in a large financial loss. This is because of the nature of the risk that was pre-determined to be covered by insurance. This predetermined risk, by its very nature, has the potential to result in large gains as well as losses.
Which One Should You Get?
Insurance Is Typically Accepted
It is important to note that, in most cases, insurance is accepted and tolerated in sports betting and various other games of chance. There are, however, instances where it is not legal for the average person to bet with insurance, especially in Nevada and Pennsylvania. It is also important to note that some forms of insurance are specifically designed for gaming use and are, therefore, more acceptable to most casinos and other gaming establishments. Be sure to consult with a reputable insurance agent or broker to determine which form of insurance is right for your specific situation.
When deciding which form of insurance to go with, consider the type of bet you are making. For example, if you are placing a bet on a sporting event, like a football game, you will likely be able to obtain better rates and more favorable terms from an insurance agent or broker if you are a known (or suspected) gambler. On the other hand, if you are placing a bet on a horse race or other game where the odds are heavily in your favor, you may be better off avoiding insurance and taking the risk yourself. Of course, this is not to say that you will inevitably lose; you just need to be aware of the extra steps you need to take in case you do.
Is Cover A Good Idea?
Although cover is a great way to minimize the risk associated with betting, it is not always the best idea. In some instances, it can even be harmful. For example, if you are placing a bet on a game that is heavily in favor of one team or player, you may want to avoid cover so that the other team or player does not ‘edge’ you out of the wager. In this situation, it is usually better to lose the bet than to cover it. When you lose money on an insurance bet, you usually either have to pay the full amount of the sum you insured for or you will have to pay out a large portion of the funds.
In short, the use of insurance in betting should be a very last resort, especially when you are using a credit card or carrying over a large sum of money. Typically, it is far better to take the risk than to pay for insurance. Of course, this does not mean that all forms of insurance are bad. It depends on the situation and the type of bet you are making. For example, if you are simply gambling on a game that is not that important to you, you may want to consider using cover so that you do not lose more than what you actually spent on the bet.
One final thing to note is that if you do use insurance in betting, it is usually a good idea to purchase a ‘layperson’s cover’. This type of cover is usually acceptable for use in most places, especially if you are a casual or low-stakes gambler. In most cases, layperson’s cover is cheaper and easier to obtain than full coverage.