Final answer:
A percentage deductible on a business's signs coverage means that the business is responsible for paying a certain percentage of the cost of replacing or repairing damaged signs, while the insurance company covers the rest.
Step-by-step explanation:
Coinsurance is when an insurance policyholder pays a percentage of a loss, and the insurance company pays the remaining cost. In the context of a business's signage coverage, a percentage deductible means that the business is responsible for paying a certain percentage of the cost of replacing or repairing damaged signs, while the insurance company will cover the rest.
For example, if the policy has a 20% deductible and the cost of replacing a damaged sign is $1,000, the business would be responsible for paying $200 (20% of $1,000) while the insurance company would cover the remaining $800.