Factory mutual

A mutual insurance company insuring only properties that meet high underwriting standards. The typical risk is fire-resistive construction with a central station alarm.

Facultative reinsurance

A separate reinsurance agreement that is negotiated for a particular risk or insurance policy.

Fair Credit Reporting Act

Public Law 91-508 requires that an insurer tell an applicant if a consumer report may be requested. The applicant must also be told the scope of the possible investigation. Should the application be declined because of information contained in that report, the applicant must be given the name and address of the reporting agency. The insurer may not reveal the contents of the report. Only the agency that compiled the report may release its contents.

FAIR plan

An acronym for Fair Access to Insurance Requirements, these plans have been established in many states to make fire and extended coverage (and homeowners in some states) available in areas otherwise not addressed by the voluntary market.

Fair rental value

An amount payable to an insured homeowner for loss of rental income due to damage that makes the premises uninhabitable.

Farmowners-ranchowners policy

A homeowners-type package policy adapted to include farm and ranch exposures.

FEMA

Federal Emergency Management Agency. This agency administers the National Flood Insurance Program. Fidelity bond, see Employee dishonesty coverage.

Fiduciary

A generic term for persons or legal entities such as executors, trustees, and guardians appointed by the court, under a will, or by a trust to manage, control, or dispose of the property of others. Fiduciary bonds, see Judicial bonds.

Fiduciary liability insurance

This insurance covers claims arising from: (1) a breach of the responsibilities or duties imposed on a benefit plan administrator; or (2) a negligent act, error, or omission of the administrator.

Fiduciary or Probate Bonds

A fiduciary or probate bond guarantees that a person appointed by the courts to handle affairs of another will be faithful in their duties.

Financial responsibility clause

The clause in a auto policy stating that, when the policy is certified as future proof of financial responsibility, then the policy will comply with the financial responsibility laws to the extent required.

FINE ARTS

An Inland Marine coverage that insures works of art on an "All Risk" and a "valued" basis.

Fire

Combustion evidenced by a flame or glow. Insurance distinguishes between a hostile fire (one out of bounds) and friendly fire (such as that contained within the firebox of a stove).

Fire and/or Burglary Alarm Sys

Install smoke alarms or a burglary alarm system in your home and take advantage of additional discounts.

FIRE DEPARTMENT SERVICE CHARGE

Pays the fire department service charge incurred as a result of an insured loss.

Fire department service charge

A fee that may be imposed by a fire department for responding to a call. Most fire coverage agreements include indemnification provisions for such eventualities.

FIRE EXTINGUISHER RECHARGE

Pays the expense you incur to recharge portable fire extinguishers after they are used to fight a fire.

FIRE LEGAL LIABILITY

Provides coverage for you as a tenant of a building, if you are responsible for damage to the building you rent or occupy. The damage must be caused by a peril specified in the underlying policy.

Fire mark

An insignia, attached to the outside of a house that represented the insurer of the house.

First named insured

An insurance policy may have more than one party named as insured. In such cases, the first named insured attends to policy housekeeping, i.e., pays premiums, initiates (or receive notice of) cancellation, or calls for interim changes in the contract. This is spelled out in commercial policies in the common policy conditions.

Fixtures

Generally, something tangible that is fixed or attached, as to a building, so that it becomes an appendage or structural part. Flat cancellation, see Cancellation.

FLEET

A fleet is five or more powered vehicles of common ownership, or under long-term lease agreements, insured for Liability Coverages and any five vehicles insured for Physical Damage Coverages.

Fleet policy

Written for a risk that has 5 or more vehicles.

Flesch test

A method to determine the degree of ease or difficulty for reading material. It counts not only the number of words in a sentence, but also the number of syllables in each word. Some states require that insurance contracts be written so that they have a certain readability level (often, 8th grade).

Floater

An inland marine form covering movable property wherever located within territorial limits.

Flood

A general and temporary condition of partial or complete inundation of dry land caused by the overflow of the natural boundaries of a body of water or the unusual and rapid accumulation of surface water runoff. Some insurance policies that include flood as a covered peril only insure against damage caused by overflow of the natural boundaries of a body of water, but other policies also may insure against surface water losses.

FLOOD COVERAGE

Provides coverage for damage caused by flood, high tides or waves or rising waters due to a storm, that results in damage to your building or business personal property.

Flood insurance

Flood insurance, like earthquake coverage, is usually only of interest to those relatively few whose property is exposed. Consequently, losses among this small group will be high and premiums can be prohibitive. However, in 1968 the federal government stepped in to help property owners in designated flood plains with the National Flood Insurance Act of 1968. Coverage is not only available, but may even be required to obtain financing for exposed properties.

Flood Insurance Rate Map (FIRM)

Provided by FEMA (Federal Emergency Management Agency), this map delineates base flood elevations and flood risk zones, and is used for rating purposes for flood insurance.

Form

The central document or documents of an insurance contract. Forms may be altered by endorsement.

Fraud

The intentional perversion of the truth in order to mislead someone into parting with something of value. Friendly fire, see Fire.

Fronting

The practice, in reinsurance, of the ceding company retaining only a small portion of a risk and ceding the remainder to a reinsurer.

Functional replacement cost

The cost to repair or replace damaged property with materials that are functionally the equivalent of the damaged or destroyed property. For example: replacing a solid mahogany banister with a pine banister. Fur floater, see Floater. Furriers customers insurance, see Bailees floater.

GARAGE LIABILITY INSURANCE

Provides coverage for the legal liability of automobile dealers, garages, repair shops and service stations for claims of bodily injury and property damage arising out of garage related operations.

Garage policy

One of the early package policies, it is written for automobile dealers and may include liability insurance for garage operations, automobile operations, physical damage coverage on garage owned autos, bailees coverage on customers cars, and auto and premises medical payments coverage.

Garagekeepers liability

A bailee coverage applying to automobiles. Commonly included in garage policies, it may be written to provide coverage for limited perils or for comprehensive physical damage, with or without collision damage coverage. Coverage may be expressed as covering the legal liability of the garagekeeper or amended to cover on a direct basis, as primary insurance or excess. General liability insurance, see Commercial general liability.

GENERAL LIABILITY INSURANCE

Protects business organizations against liability claims for bodily injury and property damage arising out of your premises, operations, products and completed operations, and independent contractors.

GLASS AND LETTERING

Pays for damage to glass which is part of the described building and for which the lease holds you responsible. Coverage is provided for all risks of loss except scratching. Replacement will be made with safety glazing materials if original was of this type or if required by building ordinance.

Glass insurance

Commercial property form that covers plate glass, glass signs, lettering, etc.

Gross earnings coverage

An outdated term for business income coverage.

Guarantee funds

State mandated funds collected from licensed insurers and maintained as backup protection for policyholders of bankrupt insurers.

Guiding principles

Suggested procedures for establishing primacy of coverage in situations involving loss under a variety of coverage forms and, perhaps, more than one interested party. Last promulgated in the 1960s, the spirit of the principles survives because insurers apparently find that the prescribed procedures commonly lead to equitable settlements for all parties.

Hangarkeepers legal liability

A bailee coverage for those charged with the care of aircraft owned by their customers.

Hard market

A condition of the insurance marketplace in which insurance is difficult to obtain, and relatively expensive.

Hazard

Generally, a condition that increases the possibility of loss.

Hazardous waste

Term generally used to refer to pollutants or contaminants which result from industrial processing and must be disposed.

Highly Protected Risk (HPR)

A building meeting certain standards of fire protection, which is therefore eligible for a reduced rate.

Hired auto

A nonowned auto that may be borrowed as well as rented or leased by the insured. Personal auto policy insureds are covered automatically for hired autos, but business auto policy insureds may not be.

HIRED AUTO COVERAGE

Protects you against claims for bodily injury and property damage that are caused by autos that you do not own, but which you use in your business. Hired auto does not include any auto which is leased, hired, borrowed or rented from one of your employees.

Hired Autos

Provides protection for a vehicle you or your employee rent or borrow for business.

Hold harmless agreement

A contractual assumption by one party of the liability exposure of another. Lease agreements, for example, commonly require the tenant to hold the landlord harmless for bodily injury or property damage experienced by others on the premises.

HOLD HARMLESS AGREEMENTS

A contract under which legal liability of one party for damages is assumed by the other party to the contract.

Hole-in-one insurance

Coverage designed for amateur golf tournaments in which there is a substantial cash prize for anyone making a hole-in-one.

Homeowners insurance

An early and hugely successful example of packaged property and liability insurance. A mid-twentieth century insurance development was introduction of the so-called multiline era in which insurers became empowered to write both property and liability forms of insurance, making way for the first packaging of these coverages within a single policy.

HOST LIQUOR LIABILITY

Provides coverage for your liability arising out of the serving or giving of alcoholic beverages at functions incidental to your business. It does not provide coverage if you are in the business of supplying or serving alcohol.

Host liquor liability

Part of the CGL, this covers the incidental serving of alcohol by an insured who is not in the business of serving alcohol. Hostile fire, see Fire. HPR, see Highly protected risk.

Hull insurance

Ocean marine insurance covering physical damage to the ship or vessel insured. Usually, written on an all-risks basis.

Jacket

The cover of an insurance policy; it usually contains the name of the insurer, its address, etc.

Joint and several liability

A legal doctrine whereby a creditor or claimant may demand payment or sue one or more of the parties separately, or all of them together.

Joint Underwriting Association (JUA)

These are insurance pools representing all insurers in a state. A few servicing carriers act on behalf of all the insurers, issuing policies, receiving fees, and handling claims. They are reimbursed for losses, and receive fees from the JUA to cover operating costs.

Joint venture

A venture in which two businesses join together to share risk or expertise on a specific project or group of projects.

Jones Act

The federal act through which maritime workers are provided workers compensation coverage (which ordinarily responds to the mandates of particular states).

Judicial bonds

Two types of bonds available to guarantee faithful performance of court appointed duties. Fiduciary bonds guarantee the faithful performance of persons entrusted by the courts in the management, conservation, and disposition of property. Litigation bonds (or ``court bonds') are required in court actions. Bail bonds and appeals bonds are litigation bonds; the bond amount is forfeited if the bonded person disappears or the appeal is lost.

KEY REPLACEMENT

Provides coverage for the replacement of keys and locks, if the keys are lost or stolen during a robbery or burglary.

Kidnap-ransom insurance

A specialty coverage offered in the surplus and excess lines markets that responds to ransom demands for recovery of kidnap victims.

Lapse

Termination of a policy because of failure to pay the premium.

Larceny

The unlawful taking of personal property of another.

Latent defect

A hidden flaw that will, in time, cause property damage that is uninsurable. Such damage is uninsurable because the element of chance is no longer present.

Law of large numbers

An underlying principle of insurance: the larger the number of participants in a given arrangement, the more accurate the rate is to the exposure.

Leased worker

A worker leased from another organization on a long-term basis.

Leasehold interest insurance

The insurable interest is that of a tenant who has some years remaining under a favorable lease that is subject to termination upon significant damage to the leased property.

Legal liability

Liability imposed by law; this includes liability based on negligence, strict liability, or contractual liability.

LIABILITY COVERAGE

Protects business organizations against liability claims for personal injury, including bodily injury, and property damage arising out of your premises, operations, products and completed operations, and independent contractors.

LIBERALIZATION CLAUSE

A clause that acts to keep the coverage up to date with respect to those areas which have been revised to the advantage of the insured.

License and Permit Bonds

A license or permit bond insures that a business complies with appropriate license and permit regulations.

License and permit bonds

Suretyship guaranteeing that the principal will abide by the rules and obligations imposed by licensing laws or ordinances. For example, an electrician may have to post such a bond guaranteeing compliance with building codes before being licensed by a municipality.

Life Multi-Policy Discount

Save on your homeowners insurance when you have a qualifying Erie Family Life policy (not available in N.Y.).

Light Trailers

Provides protection for trailers designed for highway use weighing 3.500 pounds or less pulled by a truck or private passenger auto.

LIMIT OF PROTECTION

Your limit of protection available to pay for all insured losses under your policy.

Limited partnership

A form of partnership that consists of one or more general partners, who actively engage in the business, and one of more special partners, who are not liable for the debts of the partnership beyond their initial financial contribution. Commercial insurance policies usually differentiate in the 'Who Is Insured' section between corporations, partnerships, and other business models. Therefore, the type of model being insured is important.

Liquor liability insurance

Liability coverage for owners and operators of establishments selling or serving alcoholic beverages. Litigation bonds, see Judicial bonds.

Livery use

An exclusion in automobile liability policies applying to the use of autos to carry persons for hire as in a taxi service. A share-the-ride car pool is not livery use.An exclusion in automobile liability policies applying to the use of autos to carry persons for hire as in a taxi service. A share-the-ride car pool is not livery use.

Livestock insurance

Life insurance on livestock covering death by named perils.

Loading and unloading exclusion

A feature of commercial general liability (CGL) policies intended to separate that coverage from the automobile exposure. The CGL coverage ends at the point where an item is picked up for loading onto an auto and resumes at the point where the item is deposited upon unloading.

Long tail

Refers to liability under policies written on an occurrence basis. Claims stemming from injury or damage occurring years earlier can be presented for coverage long after the policy has expired. Contrast with Claims-made.

Loss

An unintentional decline or disappearance in value arising from an event.

LOSS ADJUSTMENT EXPENSE

Provides limited coverage for expenses involved in the preparation of data, inventories and appraisals after an insured loss.

Loss adjustment expenses

Payments by an insurer for the investigation and settling of claims. They include the cost of defending a lawsuit in court.

LOSS CONTROL

A service that seeks to reduce the possibility that a loss will occur and/or reduce the severity of those that do occur.

Loss control

Actions to reduce the frequency or severity of losses. Installing locks, burglar or fire alarms and sprinkler systems are loss control techniques.

Loss costs

Loss data that has been modified by insurance advisory organizations by necessary loss development, trending, and credibility processes in order to arrive at the statistical cost of losses to be used in establishing a premium rate.

Loss development

An actuarial method to detect and correct for consistent errors in estimating the amount of future loss payments or the procedure for adjusting incurred losses to reflect their future development and ultimate value. Loss development factors are developed actuarially and applied to current losses in order to predict what the ultimate cost of losses will be when the claims are closed.

Loss experience

What the loss history has been on a particular line or book of business.

Loss exposure

A set of circumstances presenting the possibility of loss, whether or not the loss actually occurs.

Loss frequency

How often a loss occurs over a given space of time.

Loss limit

Commonly used in financial institution bonds, a loss limit is the aggregate amount that will be paid out under the coverage during the policy term. Loss limits also may be used when insuring large property risks where the exposures are spread out geographically. In this type of situation, it is unlikely that all property would be damaged by a single occurrence. Therefore, the amount of insurance may be set at a loss limit per each covered occurrence.

Loss of use insurance

See Additional living expense insurance.

Loss payable clause

A property policy provision that, at the request of the named insured, stipulates that claims tied to losses of certain property will be paid to both the named insured and the party named in the subject clause.

Loss payout pattern

Losses often are paid over a period of years, especially in casualty lines of insurance. The payout pattern illustrates the way that claims are paid out from the time they are filed until they are closed.

Loss prevention

Refers to engineering or inspection activities carried out to prevent losses in the workplace.

LOSS RATIO

Proportionate relationship of incurred losses to earned premium expressed as a percentage.

Loss ratio

The ratio of incurred losses including loss adjustment expenses to earned premiums.

LOSS SETTLEMENT - STATED VALUE

For a loss caused by an insured peril, we will pay the lesser of the following: 1. the cost to repair or replace the damaged or destroyed property with the same or similar property of like kind and quality; 2. the Stated Value shown on the Declarations. We will not pay more than the Stated Value shown on the Declarations.

Loss trending

A method to modify developed losses for changes that will occur in the future. Trend factors are used by rate makers to adjust past losses to more accurately reflect the ultimate value of the losses being used.

Loss triangle

Used to show how losses develop, a loss triangle is a chart that lists losses by line and by year. It shows the value of each set of annual losses at the end of subsequent 12-month periods.

Lost policy release

A means whereby an insured may cancel a policy by signing a statement to the effect that, since his or her policy has been lost, he cannot return it to the insurer to effect cancellation, but still wishes to cancel the policy.

Maintenance bond

Guarantees that faulty work or defective materials charged to the bond principals will be corrected or replaced. A maintenance bond may be included among the terms of a performance bond. Malicious mischief, see Vandalism. Malpractice, see Professional liability.

Managing General Agent (MGA)

An agent standing between an insurer and other agents. The MGA sells to retail agents, who then sell to the consumer. MGAs often are said to have the pen because they are given the authority to accept, underwrite, and price submissions received from retail agents.

Manufacturers and Contractors liability (M&C)

The premises and operations liability exposures of manufacturers and contractors covering third parties for bodily injury or property damage negligently inflicted in the course of daily activities.

Manufacturers Output Policy (MOP)

Policy originally designed to cover property of a manufacturer being processed at another company; it covers personal property away from the premises on an open perils basis.

Manufacturers selling price clause

Clause stating that finished goods are valued for insurance purposes at their selling price rather than their cost of manufacture.

Manuscript policy

An insurance policy covering property or liability exposures (or both) that is uniquely assembled from standard or specially created forms to suit the needs of an insured.

Marine insurance

Insurance primarily concerned with transportation exposures and property that is commonly moved around from place to place. In America, the field is divided between Inland marine and Ocean marine.

Maritime coverage

Crew members of vessels are subject to Admiralty Law and may sue their employers for work-related injuries because state workers compensation laws do not apply to them. Therefore, special coverage must be purchased for this exposure.

Market value

The price at which insured property could have been sold just prior to its loss or damage. Along with cost new minus use deprecation, market value is but another gauge used to determine the loss settlement to which an insured is entitled. The insured may choose the gauge that produces the most favorable outcome.

Market value appraisal

An appraisal to determine the market value of a building and related personal property.

MARKET VALUE CLAUSE

A provision that recognizes the established selling value of the destroyed or damaged stock as of the date of loss as the actual cash value, and to adjust the loss accordingly.

McCarran-Ferguson Act

Passed by Congress in 1945, this act states that regulation and taxation of insurance by the states is in the public interest, and that congressional silence should not be construed as a barrier to state regulation.

MCS-90

This is the Endorsement for Motor Carrier Policies of Insurance for Public Liability under Sections 29 and 30 of the Motor Carrier Act of 1980. The endorsement assures that the trucker is using insurance to comply with the financial responsibility requirements of the act.

Medical malpractice

Type of insurance protecting physicians, surgeons, nurses, and other medical practitioners against claims alleging failure to perform.

MEDICAL PAYMENTS

Provides coverage for reimbursement to a third party for medical or funeral expenses, without regard to your liability, as a result of bodily injury or death sustained by accident under the conditions specified in the policy.

Medical payments insurance

A coverage found in auto and liability policies that pays medical expenses to injured persons without regard to liability.

Miscellaneous Bonds

Bonds not classified into specific categories are called miscellaneous bonds.

Misrepresentation

Generally, misstatement of facts made on an application for insurance. May also be misstatement of coverage made by an agent to an insured.

Mobile equipment

Included for coverage under the commercial general liability form, this term relates to land vehicles used in ways that take them out of an explicit automobile liability exposure (e.g., vehicles used only on the insured premises, to carry certain permanently attached equipment, that are not required to be registered, or are designed for solely for off-road use).

Model bill

A bill drawn up for insurance regulatory purposes by the National Association of Insurance Commissioners, with the recommendation that it be implemented by the states.

MONEY AND SECURITIES

Provides coverage for loss caused by an insured peril to money and securities which are on your premises or within a bank.

Monoline policy

An insurance policy covering one subject of insurance, as opposed to a combination or multiline policy.

Moral hazard

As physical hazard relates to susceptibility to fire or wind, the term moral hazard relates to susceptibility to loss through moral lapse of the owner (e.g.,Burn the house down and collect from the insurance company before losing it in a foreclosure to the finance company.).

Motor Carrier Act of 1980

A federal law that deregulated the United States trucking industry and transferred the enforcement of financial responsibility requirements for truckers to the Bureau of Motor Carrier Safety, U.S. Department of Transportation. Insurance is one method of complying with the financial responsibility requirements.

MOTOR TRUCK CARGO LIABILITY

Covers your legal liability for loss or damage of property of others while in your care, custody, or control for transportation, subject to certain exclusions.

Motor truck cargo policy

Two forms of inland marine coverage are associated with this title, one for carriers and one for owners. As a carrier, the insured is protected for legal liability relating to property of others in the course of transport. As an owner, the insured is protected for in-transit damage to its own property.

Multi-Policy Discount

Insure your home and auto with us and receive additional savings on your homeowners insurance.

Multiline era

During the first half of the twentieth century, insurers were licensed to write property insurance or liability insurance but not both. Two insurers were needed to write automobile liability and physical damage insurance, for example, in a contrivance called a combination policy. Not long after World War II, states began licensing insurers to write both forms of insurance introducing what was then called the multiline era.

Mutual insurance company

A cooperative insurance company organized and owned by its insureds.

Mysterious disappearance

A named peril in some forms. Either theft or unexplained disappearance of covered property from a known location may activate coverage.

Object

see Boiler & machinery insurance.

Obligor

A term used in surety bonds to refer to the individual or firm bound by an obligation. Also known as the principal.

Occupancy

In general, a condition affecting the desirability of property policies.

Occupational Safety and Health Act (OSHA)

Passed in 1970, this law promulgated strict work-safety regulations, and set up the mechanism to enforce these rules through fines for violations, and closure of unsafe plants.

Occurrence

In general, an event that triggers coverage under any policy. Specifically, an event that triggers coverage under an occurrence-based liability policy. Such a policy covers injury or damage that occurs during the policy period even if claim is brought months or even years after the policy has expired. See Claims-made for the alternate arrangement. Also see Accident.

Ocean marine

Insurance coverage for vessels and property in ocean shipping. River marine is the term referring coverage for inland shipments on water. Motor truck cargo refers to coverage for property transported over highways.

OFF PREMISES PROPERTY

This covers property other than stock for loss or damage due to an insured peril when that property is temporarily at a location which you do not own, operate or lease.

OFF-PREMISES POWER ENDORSEMENT

Provides coverage for losses due to power outages originating from a remote station which affect the covered premises.

OFF-PREMISES THEFT

This is the clause which provides insurance protection for personal property while it is away from the premises named in the policy.

Omnibus clause

An agreement in most automobile liability policies and some others that extends the definition to include others without needing to name them. An example would be a policy that covers the named insured and those residing with him.

Open perils

Property coverage that applies to risks of loss on a general basis, in contrast with policies that cover for specifically identified perils, see Named perils. The old term for open perils was all risks.

Open rating

A state rating system that allows the insurer to use rates without prior approval. Also referred to as open competition.

Operating ratio

The sum of the combined ratio plus investment income.

Ordinance or law coverage

This insurance responds to property loss or damage necessitating repair, demolition, or rebuilding in accordance with current building codes.

Ordinary payroll

Payroll allotted to employees whose services could be curtailed in event of a long-term shutdown of a business without a harmful effect on reopening. This figure is important in calculating business income insurance exposures.

Other insurance

When two or more policies cover the same interests for the same exposures, each policy is said to represent other insurance to the other. Most insurance policies contain clauses that specify how or if claims will be paid if other insurance exists for the same exposures.

OTHER STATES

Other States Insurance provides temporary Workers Compensation and Employers Liability coverage for your new operations performed in states other than Nevada, North Dakota, Ohio, Washington, West Virginia and Wyoming

Other than collision insurance (automobile)

see Comprehensive physical damage (automobile).

OUTDOOR PROPERTY

This covers property such as fences, radio and television antennas, unattached signs, trees, shrubs and plants, when damaged by an insured peril.

Outer Continental Shelf Lands Act

This act makes the Longshore and Harbor Workers Compensation Act apply to work involving the development of the natural resources of the outer continental shelf. A special endorsement, the Outer Continental Shelf Lands Act Coverage Endorsement, amends workers compensation policies to provide coverage for this exposure.

Owned Autos

Provides protection for claims arising out of ownership

Owners and Contractors Protective (OCP) Liability coverage

Provides coverage for the liability of an owner of land on which a building is being constructed for the acts of the contractor handling the construction.

Owners, Landlords, and Tenants legal liability (OL&T)

see Premises and operations liability.

Ownership of expirations

Refers to the ability of an independent agent to place a risk with any of the companies that he or she represents. Unless that customer goes to another agent, the current agent owns the policy and the right to place it as he/she sees fit.

Package policy

Any combination of insuring agreements that combines property and casualty coverages. Homeowners, businessowners, and garage policies are examples.

Paid losses

The losses that have been paid for a claim.

Pair and set clause

Clause that stipulates that partial loss to a pair or set of items will be valued in terms of the lost item, not on the basis of reduced value of the pair or set.

Partial loss

A property loss that is less than a total loss, see Constructive total loss.

Partnership

A business model in which two or more individuals join together to conduct business and share profit and losses. Commercial insurance policies usually differentiate in the ``Who Is Insured' section between corporations, partnerships, and other business models. Therefore, the type of model being insured is important.

Pay-at-the-pump

A device for making sure all motorists are insured; the theory is that premiums for basic liability coverage could be collected through taxes at the gasoline pump in a relatively painless manner, thus eliminating the uninsured motorist.

Payment bond

Sometimes also called a labor and materials bond, this bond guarantees that bills owed by the contractor will be paid as they come due. The agreement may be incorporated into the performance bond.

PD

An abbreviation for property damage.

PEAK SEASON

Pays up to an additional 25% of the coverage amount for your business personal property for loss during a peak season.

Peak season endorsement

Instead of buying insurance amounts reflecting values at the height of inventory, some enterprises are able to forecast times when values will be at their peak and use this endorsement to increase the amount of insurance during that specific interval. Pen, The, see Managing General Agent (MGA).

Per occurrence/per loss excess reinsurance treaty

An agreement under which losses above a certain dollar amount are ceded to the reinsurer, who is responsible for all losses from any one exposure above this amount up to the reinsurance limit. The retention is expressed as an amount incurred per occurrence. An occurrence may be one hurricane, one flood, or one accident that results in injuries to multiple people.

Per risk excess reinsurance treaty

Similar to a per occurrence/per loss excess treaty except in the matter of the retention. The retention applies separately to each subject of insurance.

Performance bond

A bond that guarantees the property owner (the obligee) that the contractor with the winning bid on a job will perform as promised and on time.

Peril

A potential cause of loss.

Perils of the sea

Somewhat akin to open perils on land, the term refers to any potential cause of loss derived from shipment on a seagoing vessel.

Period of restoration

The period of time following a loss that is necessary to restore a business or organization to a pre-loss condition.

PERSONAL ARTICLES AND PROPERTY OF OTHERS

Provides coverage for loss to personal articles you and/or your employees own. Coverage is also provided for the personal property of others in your care, custody, or control.

Personal articles floater

Before the advent of packaged forms and broad coverages, households commonly had fire insurance on dwelling and personal property with the possible addition of extended coverage. The personal articles floater is an inland marine form that was used by the affluent for scheduling open perils coverage for various articles and classes of valuable personal property. A homeowners endorsement accomplishes the same thing today and the personal articles floater is no longer widely written.

Personal auto policy

The form currently promulgated by Insurance Services Office (ISO) for coverage of personal auto liability and physical damage exposures.

Personal injury

Distinguished from bodily injury, this term relates to injury inflicted by way of false arrest, invasion of privacy, malicious prosecution, and so on. It is written as Coverage B of the commercial general liability forms and as homeowners Coverage E.

PERSONAL INJURY LIABILITY

Provides coverage for your liability due to libel, slander, false arrest, false imprisonment, wrongful detention, malicious prosecution, invasion of privacy, or defamation of character subject to certain exclusions.

Personal Injury Protection (PIP)

The section of an auto policy in a no-fault state that responds to physical injury, loss of income, etc., of the insured regardless of fault.

Personal liability insurance

Insurance for individuals or members of a household offering protection against claims by third parties (outsiders) alleging bodily injury or property damage due to negligence. See also Premises medical payments.

Personal lines

Insurance covering the liability and property damage exposures of private individuals and their households. Contrast with Commercial lines.

Personal property

Term used in insurance to distinguish chattels from real property.

Physical hazard

A hazard that arises from the material, structural, or operational features of the risk itself apart from the persons owning or managing it. Physicians and surgeons professional liability insurance, see Professional liability.

Plate glass coverage

Provides special protection, except for the perils of war, nuclear reaction, and fire. (Fire is covered under the building policy.) This coverage is for full replacement cost and covers the expense of repairing frames, installing temporary plates, or boarding up openings.

POLICY PERIOD

The period of duration of the policy.

POLICY TERRITORY

The geographic area in which the property must be damaged or the injury or damage must occur for coverage to apply.

Policy year

Unique to the insurance business, this is a means of cost accumulation in which the aggregate transactions of all policies becoming effective in a given year determine the financial performance of those policies. Policyholder, see Insured.

Policyholders surplus

The amount of money available to an insurer to meet its obligations to its policyholders, after subtracting liabilities.

POLLUTANTS CLEAN UP AND REMOVAL

Provides coverage up to $10,000 for the cost of removing pollutants from land or water on the insured premises if their release, discharge or dispersal was caused by an insured peril.

Pollution liability insurance

Coverage for bodily injury or property damage caused by a 'pollution incident'. Insurance Services Office has two forms, one limited to on-site clean up of pollution spills.

Pool

An organization in which insurers cover certain types of risks as a group and share premiums, expenses and losses. Pools are often used to underwrite larger risks.

Power-of-attorney

Commonly used in bonding, this document conveys authority for the individual(s) named on it to execute bonds and other legal documents.

Premises

Generally, a piece of land with a building or buildings upon it.

Premises and operations medical payments

Bodily injury rather than liability is the trigger for this coverage. Sometimes referred to as 'customer good will insurance,' it is a relatively inexpensive addition to the commercial general liability policy and an automatic feature of personal liability protection. Since it responds to injury of customers or guests without regard to fault, it is sometimes effective in heading off a potentially much more serious liability claim against the owner or tenant of the business premises or private residence.

Premium

Term for the amount of money the insured pays the insurer to purchase insurance.

Pressure vessel

In boiler and machinery insurance, a type of container designed to hold liquids or gasses under pressure. Types are categorized as fired (such as a boiler) and unfired (such as an oxygen or hydrogen tank).

Price-Anderson Act of 1957

Federal law that requires evidence of financial responsibility for all privately owned nuclear reactors, spent fuel reprocessing plants, and for fuel fabrication plants licensed to process five or more kilograms of plutonium.

Primary insurance

The first policy or coverage to apply. Contrast with Excess insurance.

Principal

Used in suretyship, it refers to the individual whose performance is guaranteed.

Prior approval

Indicates that an insurer must have rate or form changes formally approved by the state insurance department before it can use them.

Private passenger automobile

A four-wheeled motor vehicle, subject to state registration laws, designed to carry passengers (such as a car, station wagon, SUV, or van) on public roads. Pro rata cancellation, see Cancellation.

Pro rata or proportional reinsurance

A certain portion of every risk is ceded under a proportional agreement. The insurer and reinsurer agree to share a portion of all insurance, premium, and losses in the same amount. The insurer is paid a commission for ceding the risk portion and premium to the reinsurer.

Producer

A term identifying the insurance agent, field rep, or other employee who sells insurance.

Product recall insurance

Coverage for the costs of recalling a product known, or suspected to be, defective.

PRODUCTS AND COMPLETED OPERATIONS LIABILITY

Provides coverage for your liability for claims arising out of products you have manufactured or sold and operations or work you have completed.

Professional Insurance Agents (PIA)

Trade association of insurance agents.

PROFESSIONAL LIABILITY

Protects the professional person against liability arising out of damages based upon alleged or actual professional errors and/or omissions.

Professional liability

A form of errors and omissions insurance, (sometimes called malpractice coverage for errors alleged against those in the healing and legal professions). Arbitrarily it seems, errors and omissions is the term applied most often to insurance covering liability for mistakes in matters affecting property, i.e., coverage for Insurance Agents E&O, Architects E&O while professional liability is used in reference to coverages such as Druggists Professional Liability, Physicians and Surgeons Professional Liability, and Lawyers Professional Liability.

Promulgate

To develop, file, publish, and put into effect insurance rates or forms.

Proof of loss

Following a loss, a formal statement given by an insured to the insurer that includes details of the loss such as the original cost of damaged or destroyed property.

PROPERTY DAMAGE LIABILITY

Provides coverage for your liability for damage to the property of others. This coverage also applies to the loss of use of property.

PROPERTY IN DANGER

Pays for loss to business personal property which you have moved to protect from damage. Coverage will apply for a 30 day period.

PROPERTY INSURANCE

First party insurance which provides coverage for your property damaged or destroyed by an insured peril as contrasted to liability insurance which covers your legal liability to others.

PROPERTY OF OTHERS

This coverage provides protection in the event the property of others, which is in your "care, custody, or control," is damaged by a covered peril. A limit of $2,500 applies. Loss or damage by theft is not included.

Prospect

A potential buyer of an insurance policy or program.

Protection and Indemnity (P&I) insurance

The nautical equivalent of bodily injury and property damage liability.

Proximate cause

That event which, in an unbroken sequence, results in direct physical loss under an insurance policy. For example, wind is the proximate cause of loss when a windstorm blows out a window that in turn topples a lit candle that sets fire to a structure and burns it down.

Public adjuster

An individual or member of a firm who contracts with private parties to aid with the preparation of loss statements and presentation to insurers. Contrast with Independent adjuster.

Public liability insurance

General term for any liability coverage for claims brought against the insured by a third party or member of the public.

Public official bond

A performance bond for holders of public office.

Public Official Bonds

The public official bond is designed to guarantee the public that the newly elected or appointed official faithfully will perform the duties of that office.

Punitive damages

An award for damages above and beyond the requirements for compensating third parties for injury or damage. As the word implies the award is meant to punish the offender. Most states and territories permit punitive damages awards to be covered by liability insurance.

Pure risk

The only consideration is the possibility of loss or no loss, but not making a profit. Contrast with speculative risk.

Quota Share

Quote

An estimate of the cost of insurance, based on information supplied to the insurance company by the applicant.

Railroad protective liability

Liability coverage designed to protect a railroad from liability claims arising out of the operations of others on or adjacent to railroad property.

Rain insurance

A weather coverage that indemnifies a promoter or organizer against loss of income because of the cancellation of an outdoor event due to rainfall that exceeds a specified amount during a specified time period.

Rate filing

Documentation filed by an insurer with the state requesting a change in the existing rates.

Rating bureau

A private organization that classifies and promulgates manual rates (or loss costs).

Real property

Land, buildings, and other structures (such as a swimming pool or tool shed).

RECIPROCAL COMPANY

An insurance company formed by persons combined into a group to insure each other, to obtain protection at relatively low cost and to obtain relatively broad coverage.

RECIPROCAL EXCHANGE

An unincorporated insuring institution in which every subscriber is both a policyholder and insurer of all other subscribers. An unincorporated mutual.

Reciprocal exchange

A type of insurance managed by an attorney-in-fact in which members pay premiums, and share in losses equally. Membership is required for insurance.

Reinsurance

The business of insuring insurance companies. By ceding a portion of its business to a reinsurance company, an insurer spreads the risk of exposure to catastrophic loss.

Removal

Removal was a provision of the New York Standard Fire Policy in which the insurer agreed to cover the cost of removing covered property from the path of a fire. Presently, property policies express the agreement in terms of preservation of property from imminent danger of damage from any covered peril. Not to be confused with Debris removal.

Renewal

The extension of the term of coverage of an expired policy, commonly by replacement with another policy effective on the date of expiration of the previous policy.

Rent-a-captive

A specialized form of captive insurance company operation designed for businesses that do not want to own a captive but want to obtain some of the advantages offered by captives. A rent-a-captive is formed by a group of investors and operated as an income-producing business. Insureds who wish to participate rent space in the captive instead of setting up and capitalizing their own captive insurance company.

RENTAL VALUE INSURANCE

Reimburses you as the owner occupant of a building for the expense of renting another location should your property become unusable as a result of damage by an insured peril.

Renters insurance

Term for insurance for the nonowner occupant of a dwelling or apartment.

Replacement cost

ee Actual cash value.

Replacement cost appraisal

An appraisal that determines the amount required to replace an existing structure and related personal property.

Replacement cost insurance

Covers property & both building and contents & on the basis of full replacement cost without deduction for depreciation on any loss sustained, subject to the terms of the coinsurance clause.

REPORTING FORM

A policy designed for use when values of your property fluctuate during the policy term. Usually an adequate limit of liability is set, and then the insured reports the values actually on hand on a given day of each month. At the end of the year or policy term, these reported values are averaged, and the premium adjusted accordingly.

Reporting form

A device for insuring values subject to extensive fluctuation that keeps the premium in line with the actual exposure. A maximum limit is set at policy inception and the insured is charged a deposit premium. Actual values then are reported, usually on a monthly basis, and earned premium is figured on the basis of those reports and laid off against the deposit premium.

Reservation of rights

An arrangement in which an insurer agrees to proceed with the defense of a case without commitment to provide coverage, in the event that the facts disclosed during the trial reveal that the occurrence is not covered.

Reserves or reserved losses

The value of losses that have been estimated and set up for future payment.

Resident agent

A licensed agent who resides in and is licensed in the state in which business is being written.

Residual markets

Insurance markets established outside the normal insurance marketing channels to cover unusually large or poor risks. Such markets include assigned risk plans, aircraft pools, nuclear pools, and certain government insurance programs.

Respondeat superior

A legal term referring to the fact that, under specific circumstances, an employer (or principal) is legally liable for the actions of his or her employees while in the course of their employment.

Retention

Usually used in reinsurance, this is the amount of liability retained by an insurer, and not ceded to a reinsurer.

Rider

Another term for an endorsement attached to a policy that modifies the coverage.

Riot

One of the extended coverage perils, related to, but broader than, civil commotion.

Risk

Risk is uncertainty concerning loss. Sometimes also used to refer to a piece of business or a submission to an insurer.

Risk and Insurance Management Society, Inc. (RIMS)

Trade association of risk managers and insurance buyers.

RISK MANAGEMENT

The practice of analyzing all exposures to risk or loss and taking steps to minimize those potential or real losses to levels acceptable to the organization.

Risk management

The process of handling pure risk by way of reduction, elimination, or transfer of risk, with the latter commonly achieved through insurance.

Risk retention group

An insurance company chartered under the laws of a state or other U.S. jurisdiction, composed of members whose business activities are similar, and controlled by its members.

Rolling store

A vehicle out of which goods are sold. An example is a mobile snack bar at a construction site. Insurance policies may contain wording that may restrict or define available coverage for this type of operation.

Salvage

When an insurer makes a payment for lost or damaged property, the insurer is entitled to the salvage of that property.

Schedule

List of items on a policy declaration, sometimes also showing descriptions and values.

Seasonal risk

A risk that is present only during certain parts of the year. For example: seasonal dwellings such as cottages used for vacations.

SECONDARY LOCATION

Provides coverage for loss to business personal property while temporarily off your premises.

SELF-INSURED RETENTION

A form of deductible which is required for claims covered by the Business Umbrella Liability Policy, but for which there is no coverage under your primary underlying insurance.

Self-Insured Retention (SIR)

That portion of pure risk an insured undertakes to handle on his or her own. A deductible is a form of self-insured retention.

SELLING PRICE CLAUSE

This endorsement would pay for loss or damage of your stock at the standard selling price, in the event of an insured peril. This insures merchandise for profits you would have realized had the peril not occurred.

Selling price clause

Applicable to the value of goods which have been damaged or destroyed by an insured peril. This clause insures the profit that would have been earned if the goods had been sold. It sets the insurable value of the property that has been sold, but not delivered, at the amount at which it was sold, less any charges not incurred.

Severability

A provision that insurance applies separately to each insured under the policy.

Sewer & Drain

Make sure you have coverage on sewer and drain backup at your property. Please call us for more details.

Shock loss

Name given to any large loss that impacts an otherwise profitable book of business.

Short tail

Additional coverage that may be purchased under a claims-made policy that responds to losses that may have occurred during a policy period, but are not reported until after the end of the policy period. Usually available for no longer than a year.

SIG

A self-insured group. An SIG is a group of risks, usually sharing common characteristics or exposures, that join together in order to generate enough premium volume to justify self-insuring themselves. Members of an SIG often are jointly and severally liable for the losses of one another.

SIGNS, LIGHTS, CLOCKS

Provides coverage for damage to your exterior signs, lights and clocks.

Single interest policy

A policy that insures the interest of only one party in property where there are a number of parties having an insurable interest.

SINKHOLE INSURANCE

Covers the peril of ground subsidence resulting from a sinkhole.

Sinkhole peril

Risk of loss by collapse of a sinkhole. This is now covered as a basic cause of loss in commercial property policies.

Sistership exclusion

An exclusion in products insurance that eliminates coverage for the withdrawal or recall of products.

Smoke damage

An extended coverage peril.

Society of Chartered Property & Casualty Underwriters

Professional society of those having attained the CPCU designation. See CPCU.

Soft costs and rents

Related to builders risk insurance, these are the necessary expenses that are incurred because a building project is delayed as the result of a covered property loss. Included are expenses such as increases in architectural fees, loss of rents because the project completion date is later than planned, increased interest expense, etc.

Soft market

A term given to a condition in which insurance is relatively inexpensive and easy to obtain.

Solicitor

An employee of an insurance agent or agency who is empowered to sell insurance on behalf of a licensed agent, generally using only those insurers that the agency represents. A solicitor usually does not have binding authority, and the business that is generated by a solicitor usually is owned by the agent, not the solicitor.

Solvency

Insurers must have sufficient assets (capital, surplus, reserves) in order to satisfy statutory financial requirements (investments, annual reports, examinations) and to meet liabilities.

Special form

In contrast to the named perils forms in property insurance, those forms that list specific perils for coverage, the special form contract covers simply risk of direct physical loss, relying on exclusions to limit and define the protection intended. See Open perils.

SPECIAL FORM CAUSE OF LOSS

This coverage protects your personal property or contents from loss caused by any direct peril, except those specifically excluded in the policy.

Specific excess reinsurance

Another term for per occurrence/per loss excess reinsurance.

Specific insurance

An insurance policy that covers only property specifically described in the policy, as opposed to blanket insurance which usually covers all property at specified locations.

Specimen policy form

Specimen policy forms often are requested when nonstandard coverage forms are being used. The specimen form may be reviewed to determine the actual policy provisions before coverage is bound.

Speculative risk

Risk which entails a chance of gain as well as a chance of loss. Contrast with pure risk.

Split limits

As in auto insurance, where rather than one liability amount applying on a per-accident basis, separate amounts apply to bodily injury and property damage liability.

Sprinkler leakage insurance

Insurance that covers damage due to the accidental discharge from an automatic sprinkler system.

Sprinkler System Credit

If your home is equipped with an automatic sprinkler system, you’ll save on your homeowners insurance.

Stacking of limits

The application of the limits of one or more insurance policies to a claim or loss.

Standard fire policy

see New York Standard Fire Policy.

Stated amount

Amends the valuation clause on a policy to include an amount that is stated as the value of the item(s) being insured. Usually, these policies pay the lesser of the ACV of the damaged property, the cost of repairing or replacing the property, or the stated amount.

STOCK REPORTING FORM

This form allows you to have a variable amount of coverage from one month to the next, depending on the actual cash value of your stock and contents. At the end of the year you will receive a refund or pay additional premium, based on your average amount of coverage over the length of the policy.

STOP GAP ENDORSEMENT

A Workers Compensation Endorsement providing Employers Liability coverage for protection in the event you negligently cause a work related employee injury, which is not covered by the workers compensation system. This endorsement is available in the monopolistic fund states.

Strict liability

Liability ascribed to a manufacturer or seller of a defective or dangerous product regardless of any fault or negligence.

Subsidence

A form of earth movement, excluded in most property policies.

Substandard risk

A risk falling outside normal underwriting standards. If written at all, it is usually with a substantial premium surcharge.

Sue and labor clause

A marine insurance clause comparable to removal in property insurance.

Superfund

The better known name for the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) passed by Congress in 1980. Under this law, parties found responsible for polluting a site must clean up the contamination or reimburse the EPA for doing so. Liability is strict, retroactive, joint and several.

Superintendent of Insurance

In some states the Commissioner of Insurance is known as the Superintendent.

Supplemental extended reporting period

An optional reporting period that allows coverage for liability claims made after the policy period. Surety, see Bond.

Surety Association of America (SAA)

A voluntary, nonprofit, unincorporated association that is licensed as a rating or advisory organization for surety and fidelity insurance in all states, D.C., and Puerto Rico. The SAA handles statistical information, filings, publications, and surety and fidelity bonds.

Surface water

Commonly known as water on the surface of the ground usually created by rain or snow that is of a casual or vagrant character, following no definite course and having no substantial or permanent existence. Some insurance policy may include surface water as a covered peril but exclude flood when defined as the overflowing of water from its natural boundaries, such as a lake or river.

Syndicate

An association of insurers that work together to insure an especially large or hazardous risk. Also see Pool.An association of insurers that work together to insure an especially large or hazardous risk. Also see Pool.

Tail coverage

Coverage for claims made after a claims-made liability policy has terminated; the extended reporting or discovery period. See Nose coverage.

Temporary Substitute Autos

Provides protection when your owned auto is disabled and you’re using another vehicle temporarily.

Temporary worker

An employee hired on a short term, often seasonal, basis. Tenants improvements and betterments, see Improvements and betterments.

TENANTS IMPROVEMENTS AND BETTERMENTS

This coverage provides protection of the modifications you have completed, affecting the value of your building. This coverage is needed if you plan to partake in the remodeling of your premises.

Third party

An outsider; a business or personal invitee or a party with absolutely no connection to an insured who may become a claimant under a form of public liability coverage because of injury or property damage alleged to have been caused by the negligence of the insured.

Threshold level

The point at which an injured person may bring tort action under a modified No-Fault Auto Plan. Many no-fault plans only allow tort action for pain and suffering after medical bills exceed some figure, like $1,000; or if disfigurement or death occurs. Tight market, see Hard market.

Title insurance

Insurance that indemnifies the owner of real estate in the event that someone challenges his or her ownership of property, due to the discovery faults in the title.

Tort

A wrong for which a civil (as opposed to criminal) action can be brought. Many tort claims arise from negligence.A wrong for which a civil (as opposed to criminal) action can be brought. Many tort claims arise from negligence.

TPA

A third party administrator. A TPA is a contractor that adjusts and administers insurance claims.

Trailer interchange agreement

An arrangement among truckers whereby trailers may be moved along by the tractors of one or more parties to the agreement.

Transfer of risk

A basic underlying principle of insurance, whereby the risk of financial loss is transferred from one party to another.

TRANSPORTATION

Provides coverage for loss to business personal property caused by specified perils while being transported.

Treaty reinsurance

An agreement in which the ceding company agrees in advance to cede certain classes of business or types of insurance to a reinsurance company. The reinsurer agrees to accept all risks or losses that fall within the terms of the agreement.

Twisting

The practice of inducing by misrepresentation, or inaccurate or incomplete comparison, a policyholder in one company to lapse, forfeit, or surrender his insurance for the purpose of taking out a policy in another company.

Vacant property

Once defined as devoid of occupants or contents, a stricter definition is being applied as more and more communities find older buildings of three and four stories that are only one quarter occupied. Property policies impose limitations on coverage of vacant buildings so the (changing) definition of vacant property is quite important.

VALUABLE PAPERS AND RECORDS

Provides coverage for the extra expense of reproducing your valuable papers, records and computerized data when damaged by a covered peril.

Valuable papers coverage

Provides coverage on valuable papers, such as: written, printed, or otherwise inscribed documents and records, including books, maps, films, drawings, abstracts, deeds, mortgages, and manuscripts. It covers the cost of research to reconstruct damaged records, as well as the cost of new paper and transcription.

Valuation

To estimate the value of a piece of property usually by considering its replacement cost or its actual cash value. Depreciation or wear and tear is factored into the estimate.

VALUED POLICY

A policy which provides that a stipulated amount will be paid in the event of a total loss.

Valued policy law

Law that exists in some states which applies primarily to buildings. The laws differ but, in general, they state that in case of a total loss the amount of insurance is the agreed amount of loss.

Vandalism and malicious mischief

Once treated as a separate peril to be added to a property policy or not, current property forms routinely include the protection.

Verbal threshold

Term in no-fault auto insurance, applicable in some states, which states that victims are allowed to sue in tort only if their injuries meet certain verbal descriptions of the types of injuries that render one eligible to recover for pain and suffering.

Vested commissions

Commissions on renewal business which are paid to the agent whether or not he or she still works for the insurance company with which the business is placed.

Vicarious liability

The condition arising where one person is responsible for the actions of another, as a parent is often held responsible for the vandalism damage a minor child does to a school.

VOLUNTARY COMPENSATION

The Voluntary Compensation Endorsement enables an employer to extend the benefits provided by the Workers Compensation Act to those of his or her employees who may not be entitled to such benefits under the terms of the act.

VOLUNTARY PROPERTY DAMAGE LIABILITY

Expands Property Damage coverage to include claims arising out of damage to the property of others which is in your care, custody or control, including the property on which you are working.

WAIVER OF SUBROGATION

This endorsement waives the right of The ERIE to place claim for recovery against a third party, after reimbursing or having made prior payment to your firm for that loss. This waiver protects your relationships with important clients or trade partners.

Waiver of subrogation

An insurer has the right of subrogation; however, it may waive that right through this method.

Wear and tear exclusion

A common heading for an all risks exclusion relating to a group of events that do not represent risk at all. Property will become worn out and torn; it will rust, settle, become rotted, infested, marred, scratched, etc. It is easy to distinguish however between the marring that occurs over time (excluded) and marring that occurs when a concrete block is dropped onto a fine wooden table.

Whole dollar premium

The practice of many insurers to round premiums to the nearest dollar, rather than carrying them out to the nearest cent. An amount of 51 cents or more is usually rounded up to the next dollar, and any cents amount less than that is dropped.

Workers Compensation

Workers Compensation insurance provides coverage for injury or disease sustained by your employee arising in the course and the scope of their employment, regardless of negligence on your part.

WORKERS COMPENSATION

Workers Compensation Insurance provides coverage for injury or disease sustained by your employees arising in the course and scope of their employment, regardless of negligence on your part.

Workers compensation insurance

Coverage that conforms to the workers compensation laws of the states in which it written. See also Employers liability insurance.

Wrap up

A liability coverage specialty focused on contracting risks, attempting to manage in a single contract the broad interplay of exposures and interests among owners, general contractors, and subcontractors.

Written premiums

The entire amount in premiums due in a year for all policies issued by an insurance company.