Glossary of Common Insurance Terms
All
| Term | Definition |
|---|---|
| Additional Living Expense |
Covers normal living expenses when you need to vacate your home due to a covered loss. |
| Advertising Injury Coverage |
Provides coverage, as long as you are not in the advertising business, for lawsuits arising from alleged piracy, copyright infringement, unfair competition, etc. due to your advertising or promotional activities. |
| Agent of Record |
This is a form that is submitted to an insurance company letting them know that you will be moving your insurance policy to another insurance agency, but are staying with the same carrier. |
| Annuity |
A policy which pays an income for life or a specified period to the insured or their estate. |
| Binder |
Provides temporary proof that you have insurance coverage until the company issues your policy. |
| Blanket Contractual Coverage |
Provides coverage for damage to property or people after a project has been completed. |
| Bodily Injury |
Provides payment to others that are seriously injured in an accident in which you are found legally responsible. |
| Building Coverage |
Provides coverage for your buildings; completed additions; permanently installed fixtures such as machinery, equipment and floor coverings; building service equipment such as fire extinguishers, refrigeration, ventilating and cooking systems. |
| Business Income Coverage |
Provides coverage to restore your business to the position that would have existed had there been no disruption of operations covered by a loss. |
| Business Liability Coverage |
Provides defense for lawsuits and legal liability for damages you cause to others for bodily injury or property damage. |
| Business Personal Property Coverage |
Provides coverage for your business contents, including equipment, furniture and fixtures, supplies and stock stored in the buildings or within 100 feet of the insured premises. This can be expanded to include improvements and betterments you have made as a tenant. |
| Certificate of Insurance |
This is a form that we prepare to show evidence of liability insurance and show your policy limits. You would request this form to provide to someone you are doing a service for, so they know you have insurance. |
| Certificate of No-Fault Insurance (aka A |
This is a certificate you MUST carry in your vehicle to present to a police officer. This certificate states that you have insurance on a specific vehicle. You may also need this Auto ID Card in order to renew your license plates. |
| Co-Insurance |
The insurance company and the policy-owner share covered expenses in agreed proportions. 80/20 is typical; The insurance company pays 80%, and you pay 20%. |
| Collision Coverage |
Covers damages to your vehicle when involved in an accident (See additional entries below) |
| Collision Coverage - Broad Form |
Pays for damages to your vehicle whether or not you are at fault. Your deductible will apply if you are at fault. |
| Collision Coverage - Limited Form |
Pays for damages to your vehicle ONLY if you are NOT at fault. Your deductible will always apply. |
| Collision Coverage - Regular Form |
Pays for damages to your vehicle whether or not you are at fault. Your deductible will always apply. |
| Completed Operations Coverage |
Provides coverage for damage to property or people after a project has been completed |
| Comprehensive Coverage |
Covers damage to your vehicle by fire, theft, vandalism, glass breakage, hail and deer. Your deductible will apply. |
| Deductible |
A set amount the insured must pay before the policy will begin to pay. |
| Disability Insurance |
A policy that helps to replace income when an insured is sick or injured and unable to work. |
| Drive Other Car Coverage |
Provides automobile liability and Personal Injury Protection (PIP) for named individuals who drive a company owned vehicle and have no personal auto policy. |
| Dwelling |
A structure to live in - may be your home, or another residence you own. |
| Employers Liability |
Provides protection under the Workers' Compensation policy for the employer against lawsuits. |
| Employment Benefits Liability |
Provides coverage for administrative or clerical errors or omissions by an employer administrator. Covered actions include failing to add an employee to group life insurance, group health, profit sharing plans, pension plans, employee stock subscription plans and disability benefits. |
| Employment Practices Liability (EPLI) |
Provides coverage for damages you are required to pay; including legal expenses for sexual harassment, discrimination or wrongful discharge, that result in employment law violations such as the Age Discrimination Act, American's with Disabilities Act, Whistle Blower Statues or Equal Pay Act. |
| Evidence of Property Insurance (aka EPI) |
This is a form that states your policy limits. Usually banks will request this form to insure that there is coverage on your property. |
| Extra Expense Coverage |
Provides coverage if, as a tenant, you are legally responsible for fire damage in the rented building. |
| Glass & Sign Coverage |
Provides specific coverage for your building's glass and signs. |
