Nude, sir, could be covered (7)
I believe the answer is:
insured
'covered' is the definition.
(covered by insurance)
'nude sir could be' is the wordplay.
'could be' indicates anagramming the letters.
'nude'+'sir'='nudesir'
'nudesir' is an anagram of 'INSURED'.
(Other definitions for insured that I've seen before include "Financially covered" , "Covered, maybe against damage to 23 ..." , "Covered against accident" , "Covered for losses" , "Covered for burglary?" .)