Business Insurance Glossary
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The value of commercial property as determined by city hall or a municipal assessor.
An insurance policy that allows a business owner to insure one property type at multiple locations or multiple property types at the same location under the same policy.
A policy that covers business losses due and accidents related to property damage, legal liability, and employee-related risks.
A rider on a business insurance policy that provides additional coverage when your property loss or damage forces your business to cease normal operations. Depending on the coverage, business interruption insurance could cover loan payments, taxes, rent, and other related expenses.
An insurance plan that bundles together property insurance and general liability insurance together for small business owners.
An Internet crime when a hacker threatens your business unless you pay a ransom.
Liability coverage for businesses that are victims of a computer hack or data breach.
A clause added to a policy in which the company assumes liability for the removal and disposal of debris caused from damages made to the property covered by the insurance plan.
A clause added to an insurance policy that protects against loss from laws or ordinances that regulate construction or repair.
Digitally stored content owned by a business. This could be a hard drive, flash drive, the cloud, or other forms of data storage.
Insurance coverage that protects the company’s financial assets from legal settlements and the cost of legal defense in the event an officer or director of the company is accused of negligent or wrongful acts.
An insurance plan built for small business owners that protects them from lawsuits over workplace injuries.
Coverage that assists businesses paying the legal fees, settlements, and judgments if an employee files a lawsuit against the business for discrimination and/or civil rights violations as interpreted by the Equal Employment Opportunity Commission.
A form of liability insurance that protects a business in the event of a professional oversight, error, or act of negligence.
A contractor or employee of a business that is entrusted with the company’s benefit funds.
A form of insurance coverage that protects an employer from the dishonest acts of their employee.
A basic business insurance plan that protects you from the most common property damage, bodily harm, and personal injury claim.
Total revenue earned from operating sources before deducting taxes and expenses.
Insurance coverage that protects any business tools and equipment in transit.
A business life insurance policy that covers a particular person within the company. It issues benefits to help offset the loss of the person in question and help find their replacement.
A tool used in risk management that helps reduce the amount of loss experienced by a company.
A type of insurance coverage that helps cover damages or loss to company equipment or goods in transport. Some plans can also include liability coverage for third parties.
A study of the business practices and operations of an insurer and its agents.
Occupational Safety and Health Act which enforces standards and laws for acceptable working conditions in industrial and/or commercial businesses.
Refers to any person that assists in the production of a business, usually sales and manufacturing.
A policy that protects against liability stemming from the handling or use of goods or products manufactured, sold, handled, or distributed by the insured, provided that the accident occurs after the insured has released possession of the product(s) to others and are away from the insured’s premises. This policy also offers protection in case of accidents caused by faulty workmanship under similar conditions.
A form of liability coverage specifically tailored to cover professional errors or omissions.
An unincorporated group of firms, corporations, or individuals who mutually agree to exchange contracts of insurance policies and share their insurance risks among themselves.
A type of insurance policy that provides risk protection for small business owners, freelancers, and independent contractors.
A three-party bond that guarantees that the principal will fulfill the obligations set by the obligee or else the surety will go into effect to help the obligee recover their losses.
Additional liability coverage that helps a business or firm settle claims or cover the cost of court judgments in the event of a lawsuit. Typically sold in $1 million increments.
The limits of liability underneath an umbrella insurance policy.
Acts that are considered unfair methods of competition or deceptive practices. Such acts include twisting, rebating, misrepresentation, inequitable claim settlement, unfair discrimination, and false advertising.
Coverage that protects against loss caused by a fire or other contingencies insured against, including loss of net profits, fixed charges, and expenses that would have been acquired if business operations were not disrupted.
Insurance coverage that helps businesses pay for medical expenses in the event an employee is a victim of a work-related illness or injury.