Car Insurance Terms & Definitions

As used in property insurance, prohibits the insured from abandoning damaged property to the insurance company for repair or disposal

Covers loss of sums owed to the insured by its customers that are uncollectible due to damage by an insured peril to accounts receivable records

Cost to repair or replace damaged property with materials of like kind and quality, less depreciation

A person or organization for whom insured status is arranged by endorsement

General liability coverage that insures against libel, slander, invasion of privacy, copyright infringement and misappropriation of advertising in connection with the insured's advertising of its goods or services

The maximum amount an insurance company will pay during the policy

Property insurance covering loss arising from all causes of loss except those that are specifically excluded

A form with the information needed for an insurance company to underwrite and rate a specific policy

A verification of the financial records, usually payroll or receipts, of an organization to determine exposures and premiums

A land motor vehicle, trailer or semi-trailer designed for travel on public roads, not including 'mobile equipment'

Coverage on property left in the care of the insured for storage, repair or servicing

Property coverage for named perils: Fire, Lightening, Explosion, Smoke, Windstorm, Hail, Riot, Civil Commotion, Aircraft, Vehicles, Vandalism, Sprinkler Leakage, Sinkhold Collapse and Volcanic Action

The minimum limits of liability that can be carried by an insured

A rating system by A.M. Best Company giving the financial condition of insurance companies

A legal agreement issued on behalf of insurance companies to provide temporary evidence of insurance until a policy can be issued

The most an insurer will pay under Part Two of a Workers' Compensation Policy for claims arising out of any one accident, regardless of how many employee claims arise out of the accident

The most an insurer will pay under Part Two of a Workers' Compensation Policy for damages due to bodily injury by disease to any one employee

The most an insurer will pay under Part Two of a Workers' Compensation Policy employee bodily injury by disease claims during the policy period regardless of the number of employees who make such claims

The insured is legally liable for damages due to bodily injury, sickness, or disease, including resulting death

Coverage for loss caused by mechanical or electrical equipment breakdown, including damage to the equipment

A written agreement in which one party, the surety, guarantees the performance or honesty of a second party, the principal (obligor), to the third party (obligee) to whom the performance or debt is owed

Property insurance coverage that allows the insured to remove labels from damaged goods or mark the items as 'salvage,' provided the goods are not damaged in the process

Property coverage for the named perils: Fire, Lightening, Explosion, Smoke, Windstorm, Hail, Riot, Civil Commotion, Aircraft, Vehicles, Vandalism, Sprinkler Leakage, Sinkhole Collapse, Volcanic Action, Breakage of Building Glass, Falling Objects, Weight of Snow, Ice or Sleet, Water Damage (in the form of leakage from appliances) and Collapse from Specified Causes

Covers against loss caused by enforcement or ordinances or laws regulating construction and repair of damaged buildings

Theft of property by forcible entry, which is evidenced by visible signs, in a premises, by a person

Auto Policy for businesses that includes auto liability and auto physical damage coverages

See Business Income Coverage

A policy that combines property and liability coverages for special types of small businesses

The termination of an insurance policy usually before its expiration

An exclusion of liability insurance which eliminates coverage for damage to property in the insured's care, custody or control

The insurance company which provides coverage

Insurance that covers loss caused by injuries to persons and the legal liability imposed on the insured for injury or for damage to property of others

A severe loss causing sizable financial loss

The commercial property forms that define the covered causes of loss for which coverage is provided. Commonly, there are 3 Cause of Loss Forms: Basic, Broad and Special

A document providing evidence that insurance has been purchased

A request by a policyholder or a claimant for payment under a policy of insurance

Expenses of settling or investigating a claim

The person presenting a claim

An amount of money set aside to meet claims reported but not paid

A group of businesses who have common or similar exposures and are grouped together for rating purposes

The arranging or establishing of business groups or categories for rating purposes

An insurance provision for property coverages in which the policyholder must carry an amount of insurance that is at least equal to a set percentage of the value of the property in order to receive full payment of a loss

Collapse of a building and collapse of personal property within a building due to specified causes (such as weight of snow, ice or rain). Does not include collapse due to design error or due to faulty workmanship or materials if the collapse occurs after construction is complete

Provides for payment to a covered automobile resulting from the striking of another object by a moving vehicle

A coverage which protects business organizations against liability claims for bodily injury and property damage. Those claims may be the result of events at your place of business, from your business operations, the products or services you make or do, communications or advertisements your business broadcasts

State-owned and operated facilities that write Workers' Compensation Insurance solely for that state

A General Liability coverage for the work of the insured that has been completed away from the business premises

Covers an automobile for loss or damage for all causes except for those specifically excluded

Insurance that is required by law

Failure to disclose facts which may void an insurance policy

Things agreed upon in an insurance policy that state the rights and the requirements of the insured and the insurer

An indirect loss such as the reduction in value of property that is the result of a direct damage loss

Term used when damage to property is more than the value of the property