Translate INSURANCE–EZE INTO BUSINESS–EASE
Is your current insurance policy Greek to you? Whenever you stumble over insurance jargon, click on this translator tool. It contains plain English definitions of hundreds of insurance terms.
Simply click on the first letter of the term you need defined below. Then select the word from the scrolling list. In seconds, we'll translate that term from insurance jargon into plain English.
| A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |
|
|
||||
|
Bodily Injury Liability Insurance
Boiler and Machinery Insurance
Business Interruption Insurance
Contractual Liability Insurance
Directors and Officers Liability
Employee Benefits Plan Liability
--End Of List--
The actual cost to repair or replace property with like kind and quality, less depreciation.
If your property is damaged or destroyed, pays for what your property is worth today, as opposed to what it will cost to replace it.
A building that shares the vertex and one side with another building
The building that’s close to, but doesn’t touch, another building.
Touching or bounding at a point or line.
The building that touches another building.
An insurance agent represents insurance companies in a sales and service capacity, and is wholly or partially paid on a commission basis. An agent is licensed by the state in which he or she operates, and his/her powers are limited by the items of his/her agency contract and by the state laws.
An authorized representative of an insurance company who can help you decide what insurance you need and help you update your insurance protection as necessary.
A form which must be filled out, when required, by the person or corporation seeking insurance (or by the agent). It supplies the company complete information about the proposed subject of insurance and the person to be insured. The company can then determine the acceptability of the risk and the basis of the policy contract.
A form that is filled out by someone applying for insurance that helps the insurance company assess whether to provide the coverage—and how much to charge for it.
A risk that underwriters do not wish to insure, but which because of state law or otherwise must be insured, is handled through a pool of insurers and assigned to companies in turn. The term is used primarily in automobile and workers’ compensation insurance.
A risk that one company doesn’t want to assume alone, so it’s shared by a group of insurers.
A verification or determination of actual exposures, classes, locations, experience mods, named insureds, etc., for the purpose of computing actual premiums. An interim audit is an audit that occurs prior to the termination of the policy period. A final audit would occur after the end of the policy period.
The process an insurance company uses to compare whether the premium it originally estimated reflects the actual risk covered by the policy—based on the customer’s actual payroll, number of autos or sales.
One who has temporary possession of property belonging to another. Bailees have different degrees of liability for such property.
A person who is temporarily responsible for someone else’s property.
A legal agreement issued either by an agent or a company to provide temporary insurance until a policy can be written. It should contain a definite time limit, should be in writing, and should clearly designate the company in which the risk is bound as well as the amount, the perils insured against, and the type of insurance.
Written proof of insurance either an agent or company can give you until your policy is actually issued.
Protection against loss arising out of the liability imposed by law upon the insured for damages due to bodily injury, sickness or disease sustained by any person or persons (other than employees).
Covers your business if it is found responsible for the sickness, injury or death of someone other than your employees.
Insurance against loss arising from the operation of pressure vessels and mechanical and electrical equipment.
Protects against the sudden and accidental breakdown or explosion of many different kinds of equipment, including boilers, machinery, electrical equipment, pressure vessels, computers, fax machines, and computerized telephone systems. Now called “Equipment Breakdown Insurance.”
A contract that guarantees the performance of an obligation, or protects against dishonesty of employees.
A written agreement that guarantees you’ll do what you say you’re going to do or that your employees will be honest.
This special form is designed for the entity that needs coverage for property that is undergoing construction, renovation or repair. It covers hard property costs as well as soft costs. Does not typically cover such perils as earthquake and flood, although these coverages may be purchased separately.
This type of insurance can protect the “property” it takes to build, renovate or repair a building, such as building supplies, construction equipment, scaffolding, and the structure itself. It may cover damage to the property as well as the cost to advertise and finance a construction project after a loss.
Generally defined in policies as breaking and entering the premises of another, with felonious intent and with visible signs of the forced entry, while the premises are closed for business.
When someone breaks in and damages or steals your property while your business is closed.
Covers fixed expenses and the loss of profit in the event physical property is damaged by a named peril; requires that the business be shut down in whole or in part as a direct result of the named peril.
Can reimburse you for lost earnings if your business is forced to shut down because of a fire, windstorm, explosion or other insured loss.
Insurance covering goods being transported, as on ships, motor trucks, railroads or airplanes.
Coverage for transported goods.
The insurance company the provides that stated insurance coverage
The insurance company
Evidence that an insurance policy has been issued, showing the amount and type of insurance provided. It may be used as evidence of reinsurance between companies, and it is the document containing specific details of property covered by Master or Open Policies. Marine insurance copies marked “original” and “duplicate” are issued as negotiable documents.
A printed certificate that states the essential provisions of your coverage, often required by customers who want proof you have insurance.
In reference to insurance, a claim may be a demand by an individual or a corporation to recover, under a policy of insurance, for loss that may come within that policy. Or it may be a demand by an individual or an entity against an insured for damages covered by a policy held by the insured. In the latter case, claims are referred to the insurance company for handling on behalf of the insured, in accordance with the contract terms.
When you suffer a financial loss and report it to the insurance company to determine whether the loss is covered by your policy.
A policy provision requiring the insured to carry insurance equal to a specified percentage of the value of the property covered. The inclusion of this provision, whether mandatory or optional, usually gives to the insured rates lower than would otherwise apply. However, in many parts of the country it is not generally used in policies covering dwellings and their contents or unprotected property since no rate credit is allowed. It provides for the full payment, up to the amount of the policy, of all losses if the insured has insurance at least equal to the specified percentage of the value of the property covered, or if the loss is equal to or exceeds the coinsurance percentage of the value of the property covered. The loss payment, in the case of most partial losses, is reduced proportionately if the amount of insurance falls short of the named percentage.
A provision in an insurance policy that specifies the insured will buy insurance equal to a specified percentage of the value of his/her property.
Covers damage to the insured object caused by collision with any object, stationary or moving.
Also known as physical damage on commercial auto policies, this coverage pays for the repair of a car after a crash.
Any form of insurance that is required by law. In Massachusetts and New York, for example, automobile liability insurance is compulsory for all owners of automobiles.
Any form of insurance that is required by law. For example, in many states automobile liability insurance is compulsory for all owners of automobiles.
A transportation company which carries the goods of only certain customers under a specific contract and not of the public in general, as does a common carrier.
A transportation company that carries the goods of only certain customers and not the public in general.
This is an additional coverage for a specific exposure for which the basic liability policy does not provide. It may be obtained for an additional premium.
Insurance that protects you when you sign a contract and agree to accept legal responsibility for specified actions.
In insurance practice, the word “coverage” is used synonymously with “insurance” or “protection.”
A term that refers to what's "covered" by the insurance policy.
Coverage for the cost incurred in the removal of debris on property covered resulting from damage caused by an insured peril.
Insurance that pays for the cost of removing debris from an insured property after a loss.
Specifies an amount to be deducted from any loss, or makes the company only liable for the excess of a stated amount. This is used largely on risks where many small losses may be expected, such as scratches or dents to automobile bodies (collision insurance).
The amount the insured must pay for a loss before the insurance company will make claim payments.
The exposure of corporate managers to claims from shareholders, employees, and others alleging mismanagement.
Generally purchased by corporations and nonprofit organizations, this insurance covers the costs of certain lawsuits against directors and officers.
Financial protection and legal defense against lawsuits arising specifically from actions on behalf of your school. Our program combines a variety of professional liability coverages into one policy which provides: • Liability Coverage for Directors and Executive Officers • Professional Liability/Wrongful Acts Coverage for Educators • Employment Practices Liability Coverage • Employee Benefits Liability Coverage
This insurance covers the costs of certain lawsuits against you or your teachers.
The date on which an insurance binder or policy goes into effect, and from which time protection is provided.
The date your insurance coverage begins.
Unauthorized access or entry, or attempted access or entry, to computer facilities and/or computer-based data, including unauthorized attempts to breach security techniques set up to protect a computer system as well as unauthorized experimentation with system hardware, software, and communications systems. This definition applies whether or not there is any intent to obtain, alter, or destroy specific information.
Successful or unsuccessful attempts to “hack” into a computer or its contents, whether you change anything or not.
Protects the insured employer against claims by employees or former employees resulting from negligent acts or omissions in the administration of the insured's employee benefits programs.
The term “employee benefits programs” is defined to include group life insurance and group accident and/or health insurance; profit sharing plans; employee stock subscription plans; and workers' compensation, unemployment insurance, social security benefits, disability benefits, etc.
Coverage is intended to extend to the “administration” of these plans, including counseling employees, interpreting employee benefits programs, handling records, enrolling/terminating/canceling employees in specified plans on a timely basis, etc.
Insurance that protects you if someone claims you mishandled the administration of an employee benefits program.
This commercial crime insurance covers the loss of money, securities, and other covered property because of any dishonest act of a covered employee or employees. This a broad term for insurance that protects an employer from an employee who takes money, securities or other property. Included are employee dishonesty, forgery, theft, robbery, burglary and fraud coverages.
Protects you if your employees steal from your business or customers.
There are many circumstances which require that a policy be changed, e.g., change of name, addition of property, change in coverage. Such changes are made by attaching to the policy an endorsement, a form bearing the language necessary to record the change.
Any written change to a policy that states certain terms and, when attached to the original policy, becomes a legal part of that policy.
This term is generally used to refer to coverage for liability arising out of errors or omissions in the performance of professional duties other than in the medical and legal profession. It would apply to services such as engineering, banking, accounting, insurance or real estate.
Insurance that protects the insured from lawsuits for making a mistake or forgetting to do something while performing professional services.
A policy or bond covering the insured against certain hazards, and applying only to loss or damage in excess of a stated amount. The risk of initial loss or damage (excluded from the excess policy or bond) may be carried by the insured himself, or may be insured by another policy or bond providing what is known as “primary insurance.”
Coverage for damages over and above those of specified primary policies.
A provision of an insurance policy or bond referring to hazards, circumstances or property not covered by the policy.
Conditions or circumstances, listed in the policy, for which the insurer will not provide coverage.
Refers chiefly to the state of being exposed to loss because of some hazard or contingency, such as an adjoining property from which a fire could spread to the property in question. It is also used as a measure of the rating units or the premium bases of a risk, e.g., an exposure of 15 vehicles, or a payroll exposure of $400,000.
Being at risk of loss because of some hazard or contingency.
A form of time element insurance that provides reimbursement to the insured for the extra expense reasonably incurred to continue the operation of a business when the property has been damaged by a cause of loss covered by the policy. It is not to be confused with business interruption insurance because it does not protect against interruption of business.
Pays for the additional cost a business incurs in order to continue operations or get the business up and running sooner (for example, rent for a temporary location, employee salaries, bills that still have to be paid regardless of the loss, etc.).
A person who occupies a position of special trust and confidence, e.g., in handling or supervising the affairs or funds of another.
A person who is entrusted to act on someone else's behalf.
Special property insurance that covers works of art.
Coverage you need to have if your business owns any works of art, like fine paintings, statues, or Oriental rugs. May not be included in the basic property policy.
Fire must be combustion sufficiently rapid to produce a spark, flame, or glow, but not an explosion, and it must be “hostile” as opposed to “friendly.” It must be accidental, and must also be the proximate cause of the damage.
Combustion that occurs where it’s not supposed to that accidentally causes damage.
Liability coverage for the insured tenant's legal liability in cases where the tenant causes fire damage to the rented property.
Protects you if you rent space and cause a fire that damages it.
An insurance contract covering a number of automobiles may be specifically designated, or provision may be made for automatic coverage on a reporting basis of all automobiles owned by the insured. To be eligible for such coverage all automobiles must be owned by a single insured.
Automobile insurance for a number of vehicles (five or more) for the same insured owner.
In general, any false writing with intent to defraud. It is defined by statute in the various states.
Falsely altering a document, such as a check or contract.
Insurance protecting businesses from most liability exposures other than professional liability and commercial automobiles.
Insurance in case someone claims your business was somehow responsible for their financial damage.
Coverage for loss or damage to glass and its appurtenances by any cause except fire and war.
Protection for loss or damage to glass and its framework.
Insurance provided by an employer, association or other “natural” group (as opposed to a “fictitious” group, formed only for the purpose of purchasing insurance) to its employees or members by purchasing a master insurance contract under which individual employees are insured.
Any insurance plan that insures a number of employees and their dependents under a single policy issued to their employer. Individual certificates are given to each insured employee.
This term is applied to conditions which may create or increase the probability of a loss.
Condition that creates or increases the chance of loss.
A vehicle whose use has been granted to another individual in return for a specified monetary renumeration.
A car you generally pay to borrow.
A contractual agreement that specified that one contracting party will assume specified legal liabilities of another party.
A contract that says one party can't be held responsible for the acts of another.
Additions or alterations made by a lessee at his own expense, which enhance the value of a building he occupies. These become part of the realty (and are not legally subject to removal) and require special insurance consideration.
Any changes made by the person who rents the property that improve the value of it.
Many insurance policies and all bonds promise to “indemnify” the insured. Under such a contract, there can be no recovery until the insured has actually suffered a loss. He is entitled to be compensated for the damage, which has occurred, i.e., to be restored to the same financial position he enjoyed immediately before the loss.
To compensate for an actual loss.
Insurance developed originally by marine underwriters to cover goods while in transit by other than ocean vessels. It now covers any goods in transit (except transoceanic) and also includes numerous floater policies, such as personal effects, personal property, jewelry, furs, etc. Although property must be movable to be eligible for coverage, bridges, tunnels, radio and TV broadcasting equipment, and similar aids to transportation and communication also qualify for inland marine insurance.
A broad type of insurance covering articles that may be transported from place to place as well as bridges and tunnels. It includes goods in transit as well as special types of property.
This type of insurance protects the individual or business that is responsible for the installation and completion of ancillary systems and other types of materials involved in many kinds of construction projects. It is often purchased to complement a contractor’s equipment policy.
Coverage for the installation of materials such as flooring or “systems” such as refrigeration, heating, alarms, and plumbing.
An amount of insurance at, or close to, the value of the property insured.
Insurance written in an amount that approximates the value of the insured property.
An insurance company that underwrites the insurance coverage or provides other insurance-related services.
The insurance company. Also referred to as the carrier.
The definitions contained herein are for informational purposes only,are not intended to be all inclusive, and may not apply in all situations. You should not rely on these definitions for interpretation of policy coverages, terms and conditions.