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Insurance Glossary |
Today is:
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Insurance can be tough to
understand. Without knowing what exactly those "insurance-eze"
terms mean, you may not understand how exactly your coverage works.
We attempt to break down these terms here in our insurance glossary.
As always, if you still have questions, feel free to contact your
account representative. |
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A
B C D E
F G H I
J K L M
N O P
Q R S
T U
V W X Y Z |
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Term |
Definition |
| Additional Living
Expense |
Covers normal living
expenses when you need to vacate your home due to a covered loss. |
| Advertising Injury
Coverage |
Provides coverage, as
long as you are not in the advertising business, for lawsuits
arising from alleged piracy, copyright infringement, unfair
competition, etc. due to your advertising or promotional activities. |
| Agent of Record |
This is a form that is
submitted to an insurance company letting them know that you will be
moving your insurance policy to another insurance agency, but are
staying with the same carrier. |
| Annuity |
A policy which pays an
income for life or a specified period to the insured or their
estate. |
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Term |
Definition |
| Binder |
Provides temporary
proof that you have insurance coverage until the company issues your
policy. |
| Blanket Contractual
Coverage |
Provides coverage for
damage to property or people after a project has been completed. |
| Bodily Injury |
Provides payment to
others that are seriously injured in an accident in which you are
found legally responsible. |
| Building Coverage |
Provides coverage for
your buildings; completed additions; permanently installed fixtures
such as machinery, equipment and floor coverings; building service
equipment such as fire extinguishers, refrigeration, ventilating and
cooking systems. |
| Business Income
Coverage |
Provides coverage to
restore your business to the position that would have existed had
there been no disruption of operations covered by a loss. |
| Business Liability
Coverage |
Provides defense for
lawsuits and legal liability for damages you cause to others for
bodily injury or property damage. |
| Business Personal
Property Coverage |
Provides coverage for
your business contents, including equipment, furniture and fixtures,
supplies and stock stored in the buildings or within 100 feet of the
insured premises. This can be expanded to include improvements
and betterments you have made as a tenant. |
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Term |
Definition |
| Certificate of
No-Fault Insurance (aka Auto-ID Card) |
This is a certificate
you MUST carry in your vehicle to present to a police officer.
This certificate states that you have insurance on a specific
vehicle. You may also need this Auto ID Card in order to renew
your license plates. |
Certificate of
Insurance
(aka Cert) |
This is a form that we
prepare to show evidence of liability insurance and show your policy
limits. You would request this form to provide to someone you
are doing a service for, so they know you have insurance. |
| Co-Insurance |
The insurance company
and the policy-owner share covered expenses in agreed proportions.
80/20 is typical; The insurance company pays 80%, and you pay 20%. |
| Completed Operations
Coverage |
Provides coverage for
damage to property or people after a project has been completed. |
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Collision Coverage |
Covers damages to your
vehicle when involved in an accident: |
| Broad Form:
Pays for damages to your vehicle whether or not you are at
fault. Your deductible will apply if you are at fault. |
| Regular:
Pays for damages to your vehicle whether or not you are at fault.
Your deductible will always apply. |
| Limited:
Pays for damages to your vehicle ONLY if you are NOT
at fault. Your deductible will always apply. |
| Comprehensive
Coverage |
Covers damage to your
vehicle by fire, theft, vandalism, glass breakage, hail and deer.
Your deductible will apply. |
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Term |
Definition |
| Deductible |
A set amount the
insured must pay before the policy will begin to pay. |
| Disability Insurance |
A policy that helps to
replace income when an insured is sick or injured and unable to
work. |
| Drive Other Car
Coverage |
Provides automobile
liability and Personal Injury Protection (PIP) for named individuals
who drive a company owned vehicle and have no personal auto policy. |
| Dwelling |
A structure to live in
- may be your home, or another residence you own. |
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Term |
Definition |
| Employers Liability |
Provides protection
under the Workers' Compensation policy for the employer against
lawsuits. |
| Employment Benefits
Liability |
Provides coverage for
administrative or clerical errors or omissions by an employer
administrator. Covered actions include failing to add an
employee to group life insurance, group health, profit sharing
plans, pension plans, employee stock subscription plans and
disability benefits. |
| Employment Practices
Liability (EPLI) |
Provides coverage for
damages you are required to pay; including legal expenses for sexual
harassment, discrimination or wrongful discharge, that result in
employment law violations such as the Age Discrimination Act,
American's with Disabilities Act, Whistle Blower Statues or Equal
Pay Act. |
| Evidence of Property
Insurance (aka EPI) |
This is a form that
states your policy limits. Usually banks will request this
form to insure that there is coverage on your property. |
| Extra Expense
Coverage |
Provides coverage to
pay the extra expenses incurred to resume your business following a
covered loss. This could include using a temporary location. |
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Term |
Definition |
| Fire Legal Coverage |
Provides coverage if,
as a tenant, you are legally responsible for fire damage in the
rented building. |
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Term |
Definition |
| Glass & Sign
Coverage |
Provides specific
coverage for your building's glass and signs. |
| Guaranteed Home
Replacement Cost |
Replaces your home,
without depreciation, even if it exceeds your policy limit. |
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Term |
Definition |
| Hired Physical
Damage Coverage |
Provides physical
damage coverage for automobiles that you have rented or hired. |
| Health Insurance |
A policy that pays
hospital and doctor expenses if sick or injured. |
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Term |
Definition |
| IRA |
Individual Retirement
Account - A policy which pays income to the insured after age 59½ |
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Term |
Definition |
| Life
Insurance |
A policy which pays a
stated amount to a beneficiary upon death of the insured. |
| Term Life:
A policy that does not build cash value, and is issued for a
specific period of time. If the insured dies within the
specified term, the beneficiary receives a stated amount. |
| Whole Life:
A policy that builds cash value at a fixed interest rate, and is
issued to age 100. If insured lives to age 100, they will
receive the specified amount. |
| Universal Life:
A policy that builds cash value at a variable interest rate.
Insured can borrow money against this policy. If insured lives
to age 95, they will receive the specified amount. |
| Limited Property
Damage - Mini-Tort |
Will pay up to $500 for
damages done to someone else's vehicle when you are at fault in an
accident and they do not have adequate coverage on their vehicle. |
| Long Term Care
Insurance |
A policy that pays a
specific portion of the expenses toward home health care, assisted
living facilities, or nursing home care for an insured. |
| Loss Policy Release
(LPR) |
This is a form that you
must sign in order to cancel your policy. |
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Term |
Definition |
| Medical Expense
Coverage |
Provides coverage for
people injured on your premises. |
| Medical Payments |
Pays medical costs for
persons, other than household members, who are injured on your
property. |
| Michigan
Catastrophic Claims Association (MCCA) |
Pays for people who are
severely injured in an auto accident. This fund reimburses
your auto insurance company for medical claims exceeding $250,000.
This is a state mandatory charge covering automobiles and
motorcycles written in Michigan. |
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Term |
Definition |
| Non-Owned and Hired
Liability |
Provides liability
coverage for your business, for bodily injury to others or property
damages caused by an accident in a non owned or hired automobile. |
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Term |
Definition |
| Other Structures |
Permanent structures
NOT attached to the home; a garage, storage shed, fencing, etc. |
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Term |
Definition |
| Personal Catastrophe
Liability |
Increases your
liability coverage. |
| Personal Injury
Coverage |
Covers damages from
lawsuits arising out of false arrest, detention, libel, slander,
wrongful entry or eviction. |
| Personal Injury
Protection (PIP) |
Provides partial or
full coverage of medical expenses for you and your family members
when involved in an auto accident, regardless of who is at fault.
Lost wages may also be covered under PIP. |
| Personal Liability |
Protection against
personal negligence lawsuits brought against you or other residents
of your household. |
| Personal Property |
Items belonging to you
and your family members living in your home; clothes, furniture,
bicycles, etc. |
| Personal Property
Replacement Cost |
Replaces an item that
was damaged without depreciation. |
| Products Liability
Coverage |
Provides coverage for
damages caused by your products after you relinquish possession to
others. |
| Property Damage |
Pays for damage to
property of other resulting from an auto accident outside the state
of Michigan. You or a covered driver must be found legally
responsible in order for payment to be made. |
Property Protection
Insurance
(PPI) |
Pays for damages done
by your auto to legally parked vehicles or stationary objects
(fences, buildings, lamp posts) in the state of Michigan. |
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Term |
Definition |
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Recreational Liability |
Bodily Injury:
Pays for serious injuries to others sustained in an accident in
which you are found legally responsible. |
| Property Damage:
Pays for damage to property of others resulting from an accident
in which you are found legally responsible. |
| Rental Reimbursement |
Pays for costs of
renting a vehicle while yours is being repaired as a result of an
accident, subject to your policy limit. |
| Replacement Cost |
Replaces your home,
without depreciation, up to your policy limit. |
| Road Service/Towing |
Pays for costs incurred
when you need a tow truck or battery jump, subject to your policy
limit. |
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Term |
Definition |
| Scheduled Personal
Property |
Additional coverage for
items, which have limitations under the homeowner's policy such as
jewelry, computers, guns, fine arts, etc. |
| Scheduled Items |
Business Insurance
version of Scheduled Personal Property. |
| Stop Loss |
A provision found in
major medical health policies which states that once the costs have
exceeded a specific amount, the insurance company that pays 100% of
the eligible expenses above that amount, in a calendar year. |
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Term |
Definition |
| Umbrella |
Provides additional
liability protection for your Automobile, General Liability and
Workers' Compensation policy. |
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Uninsured/Underinsured Motorist |
Will pay if you or a
member of your family are injured in an accident, when the other
driver if found at fault, and has inadequate coverage or no
insurance at all. |
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Term |
Definition |
| Workers'
Compensation |
Provides benefits for
you employees for job related injuries, illnesses, or death as
mandated by State law. |
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