ADMITTED COMPANY
An insurance company licensed and authorized to do business in a particular state (example California).
AGENCY COMPANIES
Companies that market and sell products through independent agents.
BID BOND
A debt secured by a bidder for a construction job or similar type of bid-based selection process for the purpose of providing a guarantee to the project owner that the bidder will take on the job if selected.
BLANKET INSURANCE
Type of coverage for more than one type of property at one location or one type of property at more than one location.
BUSINESS INCOME AND EXTRA EXPENSE INSURANCE
Commercial coverage that reimburses a business owner for lost profits and continues fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage from a covered peril (example fire). It also may cover financial losses that may occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises.
BUSINESSOWNERS POLICY / BOP
A policy that combines property, liability and business interruption. This policy covers small-to-medium-sized businesses.
COMMERCIAL GENERAL LIABILITY INSURANCE / CGL
A commercial policy that covers all liability exposures of a business that are not specifically excluded. Coverages may include product liability, completed operations, premises and operations, and independent contractors.
COMMERCIAL LINES
Products designed for and bought by businesses. Some of the major coverages are boiler and machinery, business income, commercial auto, comprehensive general liability, directors and officers liability, inland marine, medical malpractice liability, product liability, professional liability, surety and fidelity, and workers’ compensation.
CONTRACTORS LICENSE BOND
Contractor license bonds guarantee that contractors will comply with all statutes and licenses required by the state. Your acceptance and premium depends on your credit score.
EMPLOYEE DISHONESTY COVERAGE
Covers direct losses and damages to businesses resulting from the various dishonest acts of employees.
ERRORS AND OMISSIONS COVERAGE / E&O
A type of professional liability policy that covers the policyholder for negligent acts and omissions that may result in harm to his or her clients.
FARMOWNERS-RANCHOWNERS INSURANCE
A type of package policy that protects the policyholder against named perils and liabilities. Usually covers homes and their contents, along with barns, stables and other structures.
FIDELITY BOND
A form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals.
GROUP INSURANCE
A single policy covering a group of individuals, usually employees of the same company or members of the same association and their dependents. Coverage occurs under a master policy issued to the employer or association.
INLAND MARINE INSURANCE
Covers losses against moving or movable property.
INSURANCE
A type of system that enable an entity to transfer the cost of losses to an insurer for a premium.
KEY PERSON INSURANCE
Insurance on the life or health of a key individual whose services are essential to the continuing success of a business and whose death or disability could cause the firm a substantial financial burden.
LIABILITY INSURANCE
Coverage of the policyholder who is legally obligated to pay because of bodily injury or property damage caused to another person.
OCEAN MARINE INSURANCE
Coverage of all types of vessels and watercraft, for property damage to the vessel and cargo. Coverage for marine-related liabilities.
PAYMENT BOND
A type of contract bond that guarantees the contractor will pay suppliers, laborers, and subcontractors (subject to contract terms) for labor and materials. Generally issued together with a performance bond.
PERFORMANCE BOND
A type of contract bond that guarantees that a contractor will adhere to the terms and conditions of a specific contract. Generally issued together with a payment bond.
PRODUCT LIABILITY INSURANCE
Protects manufacturers and distributors exposure to types of lawsuits by people who have sustained bodily injury or property damage through the use of the product.
PROFESSIONAL LIABILITY INSURANCE
Covers certain professionals for negligence and errors or omissions that injure their clients.
REINSURANCE
Insurance bought by insurers. A reinsurer assumes part of the risk and part of the premium originally taken by the insurer, known as the primary company.
UMBRELLA POLICY
Covers for losses above the limit of an underlying policy or policies such as homeowners and auto insurance.
WORKERS COMPENSATION
A system of compensation for work-related injuries or death.