Insurance Terms Glossary
Clear, plain-English definitions for complex insurance industry terms. Understand your policy better.
Additional Insured
A person or organization, other than the primary policyholder, who is added to a policy and protected by its coverage.
Read Full Definition →Aggregate Limit
The total amount an insurer will pay for all claims combined during the entire policy period (usually one year).
Read Full Definition →Business Interruption Insurance
Coverage that replaces lost income if your business is forced to close temporarily due to a covered peril (like a fire).
Read Full Definition →Certificate of Insurance (COI)
A document issued by an insurance company that serves as proof of insurance coverage, detailing the policy types, limits, and expiration dates.
Read Full Definition →Claims-Made Policy
A type of insurance policy that provides coverage only if the claim is made while the policy is active.
Read Full Definition →Deductible
The amount you must pay out of pocket before your insurance coverage kicks in for a claim.
Read Full Definition →Endorsement
An amendment or addition to an existing insurance policy that changes its terms or scope of coverage.
Read Full Definition →Errors & Omissions (E&O)
Another name for Professional Liability insurance, protecting against claims of negligence or mistakes in professional services.
Read Full Definition →Exclusion
Specific types of risks or circumstances that are explicitly not covered by an insurance policy.
Read Full Definition →General Liability Insurance
A fundamental insurance policy that protects businesses against liability claims for bodily injury and property damage arising out of premises, operations, products, and completed operations; and advertising and personal injury liability.
Read Full Definition →Occurrence Limit
The maximum amount an insurance company will pay for a single claim or event during the policy period.
Read Full Definition →Occurrence Policy
A policy that covers claims for incidents that happen during the policy period, regardless of when the claim is actually filed.
Read Full Definition →Premium
The amount of money you pay (monthly or annually) to keep your insurance policy active.
Read Full Definition →Professional Liability
Also known as Errors & Omissions (E&O), this insurance protects professionals such as accountants, lawyers, and consultants against negligence and other claims initiated by their clients.
Read Full Definition →Retroactive Date
The date from which a claims-made policy begins providing coverage. Incidents occurring before this date are not covered.
Read Full Definition →Tail Coverage
An endorsement that extends the reporting period for a claims-made policy after it has been cancelled or expired.
Read Full Definition →Vicarious Liability
The legal responsibility a business has for the actions or negligence of its employees or agents while they are working.
Read Full Definition →Workers' Compensation
Insurance that provides wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for negligence.
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