 Additional Insured: An Additional Insured is a person other than the named insured in the insurance policy, who is protected under the terms of the insurance policy. Usually, additional insureds are added by endorsement.
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| Admitted Company: An insurance company licensed and authorized to do business in a particular state. |
| Aggregate Limit: In case of multiple claims, the Aggregate is the maximum amount the company will pay under the policy. |
Certificate of Insurance/Schedule: A certificate issued by an insurance company or its agent. It verifies that a certain insurance policy is in effect for stated amounts and coverages and names those insured.
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| Coverage: A synonym for Insurance. |
| Declaration Page: The part of the insurance policy stating the name and address of the policyholder, the property insured, its location and description, the policy period, premiums, and supplemental information. |
| Deductible: The amount of loss for which the policyholder is responsible. Under our policies, it is a specified amount. The higher the deductible, the lower the premium. |
| E&O Coverage: Errors & Omissions Coverage. A professional liability policy covering the policyholder for negligent acts and omissions that may cause harm to the client. |
| Earned Premium: The portion of the premium that applies to the expired part of the policy period. Insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires. |
| Endorsement/Rider: A written form attached to an insurance policy that alters the policy’s coverage, terms, or conditions. |
Exclusion: A provision in an insurance policy that lists which risks, people, property classes, events or locations are not covered by the policy.
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| First Party Coverage: The policy holder's coverage for the policyholder’s own property or person. |
| General Liability: Also known as Public Liability or Third Party Liability - a coverage provided to protect the insured against situations where the insured may become legally liable for injuries or damages caused to others. |
| Insured: The person or entity whose life, property or liability is covered under the insurance policy (also known as the "insurant". |
| Liability Insurance: Insurance that the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person. |
| Limit Per Claim: The maximum amount under the policy for which a single claim can be made. |
| Limits: Maximum amount of insurance that can be paid for an insured loss. |
| Long Tail: Coverage under our policy may be extended to future claims made after the expiration of the period of insurance, which result from an occurrence that happened during the insurance period of the policy. |
| Period of Insurance: The agreed-upon period of time for which the insurance policy is in force. |
| Policy: The written document for insurance between an insurance company and a policyholder defining the terms of coverage. |
| Policy Disclosure Statement: A Policy Disclosure Statement provides explanations regarding the significant features of the insurance policy to enable the insured to make an informed decision about whether or not to purchase the insurance policy. |
Policy Owner: The Policy Owner is the person that owns an insurance policy, with all contractual rights, and is not necessarily the same person as the insured or the one making the premium payments.
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Premium: The price paid for insurance coverage against a defined risk for a specified period of time.
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| Premium: The price of an insurance policy, which can be charged monthly, semiannually or annually. |
| Professional Liability Insurance: Covers professionals for negligence and errors or omissions that injure their clients. |
Pro-Rata Cancellation: When a policy is cancelled midterm, the earned premium is calculated only for the period coverage was provided.
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Public Liability: Also known as General Liability or Third Party Liability - a coverage provided to protect the insured against situations where the insured may become legally liable for injuries or damages caused to others.
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| Retroactive Date: Coverage under our policy may be extended to include claims made during the period of insurance, for occurrences that happened prior to the commencement of the policy. |
| Risk: The chance of loss of the person or entity that is insured. |
| Schedule: A list of individual items or groups of items that are covered by the policy, or a listing of specific benefits, charges, credits, assets or other defined items. |
| Surplus Lines: Property/casualty coverage that isn’t available from insurers licensed by the state and must be purchased from a non-admitted insurer. |
| Third Party Coverage: Liability coverage that protects the policyholder against possible lawsuits filed by a third party. The insured and the insurer are the first and second parties to the insurance contract. |
| Total Loss: Damage to an automobile or other property that so extensive that repair costs would exceed the value of the vehicle or property. |
| Travel Insurance: Insurance covering problems associated with traveling, such as trip cancellation due to illness, lost luggage and other incidents. |
Turnover: Your (or your company's) annual gross income. It can be defined as Gross Sales or Gross Fees Income (for consultants.
We may ask you to provide your company's annual gross income or fee income for consultants. If your business is a start up, please enter an estimate for your first year. This amount is a factor in determining your quote or calculating your premium. |
| Underwriting: Examining, accepting, or rejecting insurance risks and classifying the ones that are accepted, in order to charge appropriate premiums for them. |
| Wording: The policy with all its annexes and endorsements, which is read as one whole contract and shall be understood together. The wording includes terms of coverage, liability limits, exclusions, definitions, and all other contractual clauses. |
