Advertising Injury – arising out of libel or slander; violation of the right to privacy, misappropriation of advertising ideas, or infringement of copyright, title or slogan committed in the course of advertising goods, products, or services.

 

All Risk – insurance against loss or damage to property arising from any fortuitous cause, except such as may be specifically excluded.

 

Assumed Liability – liability that would not rest upon a person except that he or she has accepted responsibility by contract expressed or implied. This is also known as contractual liability.

 

Binder (Or Binding Receipt) – in lines other than life and (usually) health, a binder is an acknowledgement (usually from the agent) that insurance applied for is in force whether or not premium settlement has yet been made or the policy issued.

 

Bodily Injury – liability which may arise from injury or death of another person.

 

Bonds – financial instrument that guarantees reimbursement to the University for nonperformance of a contract.

 

Builders Risk Coverage – commercial property coverage specifically designed for buildings in the course of construction.

 

Causes of Loss – reasons for the loss; also referred as peril.

 

Certificate of Insurance (COI) – a document providing evidence that certain general types of insurance coverages and limits have been purchased by the party required to furnish the certificate.

 

Claim – a demand for benefits as provided by the policy.

 

Claims Made Form – refers to a type of liability insurance form that covers liability incidents only if a written claim is made during the policy period or any applicable extended reporting period. For example, a claim made in the current year could be charged against the current policy even if the injury or loss occurred many years in the past.

 

Combined Single Limits – typically expressed when referring to liability limits in an automobile policy. Refers to an aggregate limit of liability coverage for bodily injury and property damage in one accident or occurrence

 

Commercial General Liability – insurance that pays and renders service on behalf of a contractor for the loss arising out of a contractor’s responsibility due to negligence, imposed by law or assumed by contract.

 

Commercial Umbrella Liability – typically provides an extra layer of insurance limits over and above a contractor’s commercial general liability, business automobile liability and employers’ liability insurance coverage limits.

 

Completed Operation Liability Insurance – liability insurance coverage for bodily injury and property damage; arising out of the completed operations of a business, as opposed to the product of a business.

 

Contract Bond – guarantee of the faithful performance of a contract and the payment of all labor and material bills incident thereto. In those situations where two bonds are required, one to cover performance and the other to cover payment of labor and material, the former is known as a Performance bond and the latter as a Payment bond.

 

Contractual – liability assumed under a written agreement which would not otherwise be imposed. For example, a lease for a building usually requires that a person leasing the property assumes liability for accidents that occur on the property.

 

Deductible – a provision or clause in an insurance policy that the first given number of dollars or percentage of expense will not be reimbursed.

 

Employers’ Liability – provides protection against claims by the contractor’s employees or their dependents for damages resulting from personal injuries or illness sustained by employees during the course of their employment activities. Only applies to incidents not governed by workers’ compensation statutes.

 

Each Occurrence Limit – indicates the amount of coverage the contractor has under a liability policy for any one occurrence other than Personal & Advertising injury occurrences.

 

Excess Liability Policy – a liability policy designed to provide liability protection above and beyond that provided by standard liability contracts.

 

Expiration – the date upon which a policy will cease to cover, unless previously cancelled.

 

Fidelity Bond – a bond which will reimburse a contractor for loss up to the amount of the bond, sustained by an contractor (the insured) by reason of any dishonest act of an employee (or employees covered by bond).

 

Fire Damage (Legal Liability) – insures against liability incurred when the negligent actions results in destruction by fire of property which is in the contactors care, custody or control.

 

General Aggregate Limit – indicates the amount of coverage (for other than Products/Completed Operations Liability occurrences) the contractor has under a liability policy for the policy period; no matter how many separate losses that may occur.

 

Hired Auto – protects the contractor in the event the contractor’s business is sued as a result of an auto accident, involving one of the contractor’s employees driving one of the contractors hired vehicles while performing contractor business.

 

Hold Harmless Agreement – assumption of liability through contractual agreement by one party, thereby eliminating liability on the part of another party.

 

Indemnify – to restore the victim of a loss, in whole or in part, by payment, repair, or replacement.

 

Installation Floater – insures machinery and equipment of all kinds during transit, installation and testing at the owner’s premises.

 

Insurance – a formal social device for reducing risk by transferring the risk of several individual entities to an insurer. The insurer agrees, for a consideration, to assume, to a specified extent, the losses suffered by the insured.

 

Insured – the party to an insurance arrangement to whom, or on behalf of whom, the insurance company agrees to indemnify for losses, provide benefits, or render service.

 

Liability Insurance – insurance that pays and renders service on behalf of a contractor for loss arising out of his or her responsibility, due to negligence, to others imposed by law or assumed by contract.

 

Loss – generally refers to (1) the amount of reduction in the value of an insured’s property caused by an insured peril, (2) the amount sought through an insured’s claim, or (3) the amount paid on behalf of an insured under an insurance contract.

 

Named Insured – any person, firm, or corporation, or any member thereof, specifically designated by name as insured(s) in a policy as distinguished from the others who, though unnamed, are protected under some circumstances.

 

Named Peril Policies – named peril policies specify what perils are insured against, contrary to so-called all risk policies.

 

Negligence – failure to use that degree of care which an ordinary person of reasonable prudence would use under the given circumstances. Negligence may be constituted by acts of either omission or commission or both.

 

Non– Owned Auto – protects the contractor in the event the contractor’s business is sued as a result of an auto accident, involving one of the contractor’s employees driving a personal vehicle while performing contractor business.

 

Occurrence Made Form – provides liability coverage for injury or loss that occurs during the policy period regardless of when the claim is actually made.

 

Owned Auto – protects the contractor in the event the contractor’s business is sued as a result of an auto accident, involving one of the contractor’s employees driving one of the contractor’s owned vehicles while performing contractor business.

 

Peril – cause of a possible loss.

 

Personal & Advertising Injury Limit – indicates the amount of coverage the contractor has under a liability policy for any personal and / or advertising injury occurrence

 

Personal Injury – injury other than bodily injury arising out of false arrest or detention, malicious prosecution, wrongful entry or eviction, libel or slander, or violation of a person’s right to privacy committed other than in the course of advertising, publishing, broadcasting or telecasting.

 

Products & Completed Operations Aggregate Limit – indicates the amount of Products & Completed Operations liability coverage the contractor has under a liability policy for a policy period; no matter how many separate losses that may occur.

 

Professional Liability Insurance – sometimes referred to as Errors & Omissions coverage; covers individuals with extensive technical knowledge or training in a particular area of expertise (e.g. architects, engineers, physicians) for acts of negligence arising from their professional occupation.

 

Property and Casualty Insurance – a broad category of insurance policies designed to protect against loss of property, damage, and other liabilities

 

Replacement Cost – the cost of replacing property without deduction for depreciation.

 

Risk – (1) A chance of loss. (2) A person or thing insured.

 

Split Limits – typically expressed when referring to liability limits in an automobile insurance policy; refers to separate limits for bodily injury each person/ bodily injury each accident/ property damage each accident.

 

Surety Bond – bonds that guarantees that a contractor will fulfill certain terms or conditions of the contract.

 

Waiver of Subrogation – endorsement to a property liability policy whereby an insurer gives up the right to take action against a third party for a loss suffered by an insured

 

Workers Compensation – benefits payable to an employee for injury, disability, dismemberment, or death as a result of occupational hazard. The payments are a liability of the employer. (2) Insurance agreeing to pay the Workers Compensation benefits required by law on behalf of the employer.