The information provided in this glossary is for general educational purposes only. Definitions are intended to explain commonly used insurance terms and concepts. Actual coverages, terms, conditions, exclusions, limitations, and availability vary by policy, carrier, and program.
Coverage Terms
General Liability Insurance
A common type of insurance that businesses and organizations often purchase to help address certain liability exposures arising from their operations. Coverage varies by policy and insurer.
Professional Liability Insurance
Insurance commonly purchased by professionals and service providers to help address claims alleging errors, omissions, negligence, or other wrongful acts in the performance of professional services.
Participant Liability Coverage
Coverage commonly associated with sports, recreation, fitness, camps, events, and similar activities where participants may be exposed to injury risks. Coverage details vary by policy.
Property Insurance
Insurance generally purchased to help protect covered buildings, equipment, inventory, and other property against certain covered causes of loss.
Commercial Auto Insurance
Insurance commonly purchased for vehicles used in business operations. Coverage, limitations, and eligibility vary by policy.
Workers' Compensation Insurance
Insurance that generally provides benefits for employees who sustain work-related injuries or illnesses, subject to applicable state laws.
Directors and Officers (D&O) Liability Insurance
A type of management liability insurance commonly purchased to help address claims alleging wrongful acts by directors, officers, board members, or organizational leaders.
Abuse and Molestation Coverage
Coverage that organizations may purchase to help address allegations involving abuse or molestation. Terms, conditions, exclusions, and available limits vary significantly among policies.
Excess Liability Insurance
Insurance that may provide additional limits above certain underlying liability policies, subject to policy requirements and terms.
Event Liability Insurance
Insurance commonly purchased for special events to help address certain liability exposures associated with hosting an event.
Wedding Cancellation Insurance
Coverage that may help address certain financial losses when a wedding must be postponed, cancelled, or interrupted due to covered circumstances.
Insurance Process Terms
Claim
A request submitted to an insurance company for consideration under the terms of an insurance policy.
Premium
The amount charged by an insurance company in exchange for insurance coverage.
Deductible
The amount an insured is generally responsible for paying before certain policy benefits may apply.
Policy Period
The length of time during which a policy is in effect.
Endorsement
A document that modifies, adds to, or changes certain provisions of an insurance policy.
Exclusion
A provision within a policy that describes situations, property, activities, or losses that are not covered.
Policy Limit
The maximum amount an insurer may pay under specified policy provisions.
Aggregate Limit
The maximum amount an insurer may pay for all covered claims during a policy period, subject to policy terms.
Occurrence
A term commonly used in liability insurance that generally refers to an event or incident that may result in a claim.
Underwriting
The process by which insurers evaluate risk and determine eligibility, pricing, and coverage terms.
Renewal
The process of continuing an insurance policy for an additional policy period.
Certificate of Insurance (COI)
A document that provides evidence that insurance coverage exists at the time it is issued.
Contract & Risk Transfer Terms
Additional Insured
A person or organization added to a policy who may receive certain protections under that policy, subject to policy terms and conditions.
Named Insured
The individual or organization specifically identified on the insurance policy as the primary insured.
Indemnification
A contractual provision in which one party agrees to assume certain financial responsibilities for specified claims, damages, or losses.
Hold Harmless Agreement
A contractual provision in which one party agrees not to hold another party responsible for certain liabilities or claims.
Waiver of Subrogation
A provision that may limit an insurer's ability to seek recovery from another party after paying a covered loss.
Contractual Liability
Liability that may arise from obligations assumed within a contract or agreement.
