Terminology

Quote Terminology Definitions

PROPERTY INSURANCE

BPP - Business Personal Property or Contents

This definition includes Furniture, Fixtures, Equipment, Inventory and Improvements to leased premises.

 

Co-insurance

Coinsurance is a penalty imposed on the insured by the Insurance Company for under declaring the value of the property.

Coinsurance is expressed as a percentage, normally 80%, 90% or 100%

100% means you are insuring for the full value of the property, 90% for 90% of the value and 80% for 80% of the value

Penalty Example: A building replacement cost is $1,000,000. and the policy has an 80% coinsurance clause. This means you should insure for $800.000. (80% of $1,000,000.), but instead you insure for $400.000., which is ½ the amount you should have insured.

You suffer a $100,000. loss but you are only paid $50,000., because you insured for ½ the value that you had to insure.

 

AOP – All Other Perils

 

RC or RCV – Replacement Cost Valuation

This means that in the event of a loss, the Insurance Company will pay the Replacement Cost or Cost of Repairs without deductions for Depreciation.

 

ACV – Actual Cash Value

This means that in the event of a loss, the Insurance Company will pay the Replacement Cost or Cost of Repairs less deductions for Depreciation.

 

BI – Loss of Business Income or Loss of Rents

This coverage pays for the Loss of Income or Rents in the event of a covered claim.

 

EE – Extra Expense

This coverage pays for the Extra Expense to continue operations after a covered loss.

 

Ordinance or Law Coverage

This coverage is triggered when you are required to comply with local law, ordinance, statutes or building codes.

These additional costs will be at the owner's expense.

The local municipality may not issue the necessary permits to repair until all areas are in compliance with the mandated codes.

This coverage has 3 components:

· Coverage A: Coverage for loss to the undamaged portion of the structure

· Coverage B: Demolition cost

· Coverage C: Increased cost of construction

 

LIABILITY INSURANCE

GENERAL LIABILITY

Insurance for what the policyholder is legally obligated to pay because of bodily injury or property damage caused to other persons or property of others.

 

AGGREGATE – Means Annual

 

BI – Bodily Injuries          PD – Property Damage

 

PRODUCTS LIABILITY

Protects manufacturers, distributors and retailers from exposure to lawsuits by people who have sustained bodily injury or property damage through the use of the products they sell.

 

PERSONAL INJURY LIABILITY

This coverage affords protection against claims such libel, slander, defamation of character or invasion of privacy.

 

ADVERTISING INJURY LIABILITY

Pays for damages done in the course of oral or written advertisement that disparages, libels or slanders a person's or organization's goods, products or services.

 

FIRE DAMAGE LEGAL LIABILITY

Fire damage legal liability pays for fire damage caused to rental property. It must be determined that the insured caused the fire for the coverage to apply.

 

CYBER LIABILITY

Cyber insurance generally covers your business' liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver's license numbers and health records.

 

EMPLOYMENT PRACTICES LIABILITY

Protects Employer against claims made by employees alleging: Discrimination (based on sex, race, age or disability, for example), Wrongful Termination, Harassment and Other employment related issues, such as, failure to promote.