Glossary of Terms
Understanding all the terms associated with an insurance policy may not always be easy. Here are some brief definitions of the different types of insurance available.
General Liability
Protects your business against third-party claims of bodily injury or damage to someone else’s property.
Property
Covers risk of loss to an organization’s buildings or personal property. Usually includes buildings, personal property of the insured, personal property of others on site and in insured’s possession.
Worker’s Compensation
Covers businesses for their statutory and legal obligations for employee expenses that are a result of on-the-job injuries and/or illnesses.
Employee Practices
Liability insurance that covers certain employment related claims made by employees such as harassment, discrimination and wrongful termination
Crime
Covers criminal acts such as employee dishonesty, forgery or alteration, computer fraud, funds transfer fraud; kidnap, ransom, or extortion; money and securities fraud.
Business Interruption/Income
Covers the loss of income that a business suffers after a disaster while its facility is either closed because of the disaster or in the process of being rebuilt after it.
Umbrella
Liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies.
Automobile/Motorcycle/RV’s/Boats
A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident.
Home
Property insurance that protects a private residence. It covers losses occurring to one’s home, its contents, personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home or at the hands of the homeowner within the policy territory.
Life
A protection against the loss of income that would result if the insured passed away. The goal of life insurance is to provide a measure of financial security for your family after you die.
More Terms and Definitions
If you were not able to find the definition of the word or term you were seeking, we encourage you to go to the AM Best website for a more complete list of Terms to Know: