Insurance Glossary

Coverage that pays the current value of damaged property, accounting for depreciation. Generally pays less than replacement cost.

Coverage that pays for injuries you cause to others in an accident where you are at fault, including medical expenses and legal fees.

Coverage that replaces lost income if your business cannot operate due to a covered event like fire or natural disaster.

A package policy that combines general liability and commercial property insurance, often at a lower cost than purchasing separately.

A formal request to your insurance company for payment based on the terms of your policy. You file a claim when you experience a covered loss.

Coverage that pays for damage to your vehicle resulting from a collision with another vehicle or object, regardless of fault.

Coverage for your business property, including buildings, equipment, inventory, furniture, and fixtures.

Coverage for damage to your vehicle from non-collision events like theft, vandalism, weather, fire, or hitting an animal.

The maximum amount your insurance company will pay for a covered claim. Different types of coverage within your policy may have different limits.

Coverage for data breaches, cyber attacks, and other technology-related risks that could affect your business.

The amount you pay out of pocket before your insurance coverage kicks in. A higher deductible usually means a lower premium, and vice versa.

The portion of home insurance that covers the physical structure of your home, including walls, roof, floors, and built-in appliances.

An addition or amendment to an existing insurance policy that changes or adds to the terms of coverage.

Specific situations, conditions, or circumstances that are not covered by your insurance policy.

Separate coverage for flood damage, which is not included in standard home insurance policies. Often required in flood zones.

Coverage that pays the difference between what you owe on your car loan and the car's actual cash value if it's totaled.

Coverage that protects your business from claims of bodily injury, property damage, and advertising injury caused by your operations.

An insurance agent who represents multiple insurance companies and can shop for the best coverage and rates on your behalf.

Legal responsibility for injuries to others or damage to their property. Liability coverage pays for these costs if you are found at fault.

Also called Additional Living Expenses (ALE), this covers costs like hotel stays and meals if you cannot live in your home due to a covered loss.

Coverage that pays medical expenses for you and your passengers after an accident, regardless of who is at fault.

Coverage for additional costs to rebuild your home to current building codes, which may be stricter than when your home was built.

Coverage for your belongings inside your home, such as furniture, electronics, clothing, and other personal items.

The written contract between you and your insurance company that outlines what is covered, what is excluded, and the terms and conditions of your coverage.

The amount you pay for your insurance policy, typically on a monthly or annual basis. Premiums are determined by factors like coverage amount, deductible, location, and risk factors.

Errors and Omissions insurance that protects against claims of negligence, mistakes, or failure to perform professional services.

Coverage that pays for damage you cause to other people's property (vehicles, buildings, fences) in an accident where you are at fault.

Coverage that pays to replace damaged property with new items of similar kind and quality, without deducting for depreciation.

Extra liability coverage that goes beyond the limits of your home or auto policy, providing additional protection against major claims.

The process insurance companies use to evaluate risk and determine whether to offer coverage and at what price.

Coverage that protects you if you are in an accident with a driver who has no insurance or insufficient coverage to pay for your damages.

Required insurance that covers medical expenses and lost wages for employees injured on the job.