Insurance allowed for a counterpane (8)
I believe the answer is:
coverlet
'a counterpane' is the definition.
(coverlet is a kind of counterpane)
'insurance allowed' is the wordplay.
'insurance' becomes 'cover' (I've seen this before).
'allowed' becomes 'let' (I've seen this before).
'cover'+'let'='COVERLET'
'for' acts as a link.
(Other definitions for coverlet that I've seen before include "quilt" , "spread" , "Bedspread" .)