Redhead in undies prepared to get covered (7)
I believe the answer is:
insured
'covered' is the definition.
(covered by insurance)
'redhead in undies prepared' is the wordplay.
'redhead' becomes 'r' (the head letter of red).
'in' means one lot of letters goes inside another.
'prepared' is an anagram indicator.
'undies' anagrammed gives 'insued'.
'r' put into 'insued' is 'INSURED'.
'to get' acts as a link.
(Other definitions for insured that I've seen before include "Covered for loss" , "Covered for losses" , "Covered against mishaps" , "Covered, maybe against damage to 23 ..." , "Financially covered" .)