Commercial Insurance Definitions And Terms

Top FAQs for Commercial Insurance Definitions And Terms

Commercial Insurance Definitions

Confused with insurance terms and definitions? Check out our handy list of definitions from A–Z!

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In this list, we’ve compiled some of the most used commercial insurance definitions and terms—plus definitions of common types of insurance coverage. We understand that the terminology can be confusing. Check out this A–Z guide for information!

Adjuster: An adjuster is charged with determining the extent of loss and whether the loss is covered under the existing policy. There are three types of adjusters you may deal with: an employee adjuster, an independent adjuster, and a public adjuster.

Business Interruption Insurance: Also known as ‘Business Income and Extra expense’, business interruption insurance is commercial coverage that reimburses a business owner for lost profits. It also continues to cover fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage from a covered peril, such as a fire. It also may cover financial losses that may occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises.

Commercial General Liability Insurance (CGL): General liability—often referred to as ‘slip & fall insurance’—is a broad commercial policy that covers liability exposures of a business that is not specifically excluded. It covers third-party bodily injury, third-party property damage, libel, slander, & copyright infringement, as well as lawsuit expenses and advertising injury.

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A Guide to Commercial Insurance Terms - InsuranceHotline.com

Category: Liability Insurance

Insurance terms can be difficult to understand, and when it comes to protecting your business, it’s vital that you have a clear view of what your coverage entails. Getting to know the meaning behind some of the common terms used in commercial insurance is the best way to make shopping for your commercial policies simpler. These definitions provide a basic guide to the world of commercial insurance, and will help break down the complex terms of your policy...

General Liability: This is a liability insurance policy that covers a wide range of (but not all) potential liability risks. General liability is designed to provide for court costs a-sociated with a lawsuit and to cover damages levied against your company if you are proved negligent in some way.

Professional Liability: This is a term for a variety of types of liability designed to defend professionals against negligence and errors made in the process of performing their duties. Errors & Omissions and Malpractice are two common forms of professional liability coverage.

Personal Injury: This is an injury that is not physical, but instead a result of libel, slander, or any other form of defamation of another person for which your company might be held accountable.

Advertising Injury: This is another type of injury that falls under liability coverage, and provides for damage or injury done to the reputation of another company as a result of advertising claims or statements on your part.

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What is Commercial Insurance? [Definition, Coverage, Types]

Category: Commercial Insurance Is Usually A One-year Contract Between Business Owners And An Insurance Company Under Which The Insurance Company Assumes

Learn here what commercial insurance is, how it works, its types & more. Read on to learn more about it and how you can benefit from it!

Although commercial insurance is something businesses must have in order to protect themselves from numerous potential accidents and unexpected events, many people are still unclear as to what is commercial insurance. This article defines commercial insurance and lists all the different types of insurance business owners should get to protect themselves from liability.

Commercial insurance by definition provides protection for businesses from various risks—some insurance policies focus on protecting the business’ reputation, while others aim to maintain the financial aspect of the company. This type of insurance is different from personal insurance in that it has a higher coverage limit and it pertains to multiple stakeholders and employees.

Commercial insurance is usually a one-year contract between business owners and an insurance company, under which the insurance company a-sumes responsibility for the business’ liabilities in exchange for a certain sum of money. The amount of money business owners have to pay is determined based on the amount of property the business has in its name or the potential liabilities the business might be exposed to.

The commercial insurance terms are often influenced by the requirements imposed on the business by vendors, landlords, or partners. It’s important to note here that every insurance policy has a limit—a predetermined amount of money the insurance will cover in the event of a loss. Most companies also have a limit per claim, as well as a limit per policy—most companies have a $1 million policy limit and smaller limits for each filed claim.

When discussing what does business insurance cover, it’s important to remember that this isn’t a single product, but a whole set of insurance products and services aiming to help companies of all sizes protect themselves from any unexpected losses and liabilities.

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Basics definitions: Premium, deductibles, coverages

1:20 - 2 years ago

Have you ever heard someone mentioning their premium and had no idea what they were talking about? Maybe you've ...

What is Commercial Insurance? A Guide for Beginners

Category: Insurance Available To Businesses

What is commercial insurance? Check out this beginners guide to learn everything you need to know about business insurance coverages and policies.

Overall, commercial insurance protects businesses from liabilities such as lawsuits from third-parties, like customers or those they entered a contractual relationship with, lawsuits from clients, injuries to employees or customers, and damage or theft of business property.

There is usually a limit per claim as well as a limit per policy overall. For example, there could be a per claim limit of $1 million and an aggregate policy limit of $2 million.

Some commercial liability insurance policies have a deductible, while others don’t. If you have a deductible, that means you must pay your deductible amount before insurance pays the rest of the claim.

After your coverages, come the exclusions. These are things the policy won’t pay for or conditions that exclude coverage. For example, all liability policies exclude coverage if you harm another party intentionally.

General liability insurance has specific coverages and does not cover all potential losses. General liability insurance covers you if someone is injured by or on your property because of you or your employees’ negligence.

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Commercial Health Insurance Definition

Category: Terms Commercial Insurance Is Divided Into Two Main Categories: Property Insurance And Casualty Insurance Property Insurance Provides

Commercial health insurance is health insurance provided and administered by public and private companies rather than by the government.

Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas' experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning.

As of 2020, 1,096 health insurers filed statements with the National A-sociation of Insurance Commissioners (NAIC), a nonprofit that sets standards for the U.S. insurance industry and provides support to insurance regulators.

Commercial health insurance policies are primarily sold by for-profit public and private carriers. Generally, licensed agents and brokers sell plans to the public or group members; however, customers can also purchase directly from the carrier in many instances. These policies vary widely in the amount and types of specific coverage that they provide.

The term "commercial" distinguishes these types of policies from insurance that's provided by a public or government program, such as Medicaid, Medicare, or the State Children's Health Insurance Program (SCHIP). In broad terms, any type of health insurance coverage that isn’t provided or maintained by a government-run program can be considered a type of commercial insurance.

Most commercial health insurance plans are structured as either a preferred provider organization (PPO) or health maintenance organization (HMO). The main difference between these two types of plans is that an HMO requires patients to use providers and facilities within the network if they want insurance to cover the costs, while a PPO lets patients go outside the network (though their out-of-pocket costs might be greater).

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Commercial Lines Insurance and Term Glossary | Commercial Insurance Phoenix

Call Hegarty Haynes for Free Quotes on Commercial Insurance Today. General Liability, Commercial Property Insurance, Business Income Coverage, Inland Marine Insurance, Flood Coverage and more.

Commercial Lines Insurance address the liability a-sumed or property that is owned and or used by or in the course of doing business. Descriptions of the customary definitions and coverage which may be obtained are listed below.

Commercial Package Policy is a convenient a-sembly of several coverage forms packaged together and commonly called the CPP. The CPP includes a minimum of two of the following coverage parts; commercial liability, commercial property, commercial automobile, inland marine (including electronic data processing coverage) and commercial crime coverage. The insurance companies will usually provide added premium discounts to encourage clients to incorporate as many coverage’s as possible in a single policy. This type of policy is typically written on more complex insurance risks.

Business owners Policy commonly called a BOP is a homeowners approach to combining numerous coverage’s into a convenient package. The BOP is designed for the small to medium sized business with limited exposures like offices, small retail outlets or a specified number or service or processing businesses. The premium rating basis for the BOP is typically the amount of business personal property being covered.

General Liability Insurance is necessary for all commercial businesses as it provides third-party bodily injury and property damage coverage. This form typically includes coverage for both premises and products and completed operations exposures.

Commercial Property Insurance applies to structures owned (or where coverage is required by lease) as well as fixtures, permanently installed machinery and equipment, personal property used in the course of doing business as well as inventory or stock. Upon request it may also extend by endorsement to property of others while on premises. Depending on the insurance contract the coverage may extend to from within 100 to 1000 feet of the premises.

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Commercial Insurance Terms And Conditions

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Insurance Terms Glossary | Understanding Common Insurance Terms

Not sure what insurance terms on your policy means? Take a look at our Insurance Terms Glossary to help give you a better understanding of your policy.

Our insurance terms glossary is divided alphabetically by insurance terms in a quick reference guide to a-sist understanding the language commonly used by insurance companies. Policy documents contain a number of insurance terms because they typically define the limitations of risk and liability on the insured and any exclusions of coverage.

If you plan to start a new policy or renew your current policy with a different carrier or agency, it is important to review and understand the policy differences behind individual quotes from multiple carriers. Lower policy premiums may be the result of decreased payout benefits, higher deductibles, or maximum damages allowed. It is important to identify these unique features in any policy comparison, otherwise a lower price may come at a much higher cost when you have to file a claim for loss or damages in the future.

Select the first letter of the word or term to locate a definition and brief description. For example, to get help with the terms “Automobile Liability Insurance” or “Premium”, select either the letter A or P from the menu bar below:

An event or occurrence which is unforeseen and unintended. Accidental is an important concept of risk for insurance. The more unlikely the accident or the occurrence, the less expensive it is to insure.

(1) The time between the first premium payment and the first benefit payout under a deferred annuity; (2) A specified period of time, such as 90 days, during which the insured person must incur eligible medical expenses at least equal to the deductible amount in order to establish a benefit period under a major medical expense or comprehensive medical expense policy.

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Consumer Glossary

Category: Property Insurance Coverage Sold To Commercial Ventures A Percentage Of Premium Paid To Agents By Insurance Companies For The

The definitions in this glossary are developed by the NAIC Research and Actuarial Department staff based on various insurance references. These definitions represent a common or general use of the term. Some words and/or phrases may be defined differently by other entities, or used in a context such that the definition shown may not be applicable.

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

Accident Only - an insurance contract that provides coverage, singly or in combination, for death, dismemberment, disability, or hospital and medical care caused by or necessitated as a result of accident or specified kinds of accident.

Accident Only or AD&D - policies providing coverage, singly or in combination, for death, dismemberment, disability, or hospital and medical care caused by or necessitated as a result of accident or specified kinds of accidents. Types of coverage include student accident, sports accident, travel accident, blanket accident, specific accident or accidental death and dismemberment (AD&D).

Accumulation Period - period of time insured must incur eligible medical expenses at least equal to the deductible amount in order to establish a benefit period under a major medical expense or comprehensive medical expense policy.

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Commercial Insurance Definitions | Commercial Insurance

Category: Commercial Insurance

Commercial Lines: Products designed for and bought by businesses. Among the major coverages are boiler and machinery, business income, commercial auto, comprehensive general liability, directors and officers liability, fire and allied lines, inland marine, medical malpractice liability, product liability, professional liability, surety and fidelity, and workers compensation.

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Insurance Terms And Definitions - All Insurance FAQ

Four types of insurance that most financial experts recommend include life, health, auto, and long-term disability.

The basic concept of insurance is that one party, the insurer, will guarantee payment for an uncertain future event. Meanwhile, another party, the insured or the policyholder, pays a smaller premium to the insurer in exchange for that protection on that uncertain future occurrence.

General Insurance Terms and Conditions means the general part of the Insurance Rules, which determine the main principles of legal relationships between the Insurer and the Client, the general terms and conditions for all insurance contracts concluded by the Insurer and applicable for all types of insurance offered by …

We begin with an overview of the types of insurance, from both a consumer and a business perspective. Then we examine in greater detail the three most important types of insurance: property, liability, and life.

Like most common-law concepts, it has taken many individual cases and many decades—in some cases, centuries—to develop a settled view of the necessary elements for a valid insurance policy. These elements are a definable risk, a fortuitous event, an insurable interest, risk shifting, and risk distribution.

Policy Conditions — the section of an insurance policy that identifies general requirements of an insured and the insurer on matters such as loss reporting and settlement, property valuation, other insurance, subrogation rights, and cancellation and nonrenewal.

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Glossary of Business Insurance Terms for Small Businesses | Insureon

Category: Commercial Insurance

This glossary explains terms you might encounter researching insurance for your business. Get the right small business insurance at the best price with Insureon.

This glossary provides business insurance definitions for terms you might encounter while researching policies for your business and maintaining existing coverage. By understanding the relevant terms, you can make informed decisions about protecting your business.

Insurance is complicated, but getting insured is easy. Complete Insureon’s free online application to compare quotes from top U.S. insurance companies. Once you find a policy that fits your needs, you can begin coverage in less than 24 hours.

The information provided on this website does not constitute insurance advice. All content and materials are for general informational purposes only. Complete Insureon's online application and contact one of our licensed insurance professionals to obtain advice for your specific business insurance needs.

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Insurance Terms & Definitions

Below are some standard terms and definitions used when describing Business and Personal Insurance coverages. When reading the definitions, please keep in mind that this glossary is …

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Commercial Insurance Terms and Definitions | Blog | Vargas & Vargas Insurance

Category: Commercial Insurance Terms

In today’s world, business owners have a lot on their plates. The last thing that you need to do as a Massachusetts business owner is to take the time to learn the language of business insurance – that’s why Vargas and Vargas Insurance Agency is here! We want to help you insure your business without getting confused by insurance terms and jargon.

Commercial Property – The business’s property and physical belongings. Depending on the policy, this could include land, structures, and completed additions. Permanently installed fixtures and equipment are also typically considered part of the property. Furniture, equipment, and technology that is owned by the business but not permanently attached to the property are considered business personal property. In some cases, the personal property of others is also included as a part of the commercial insurance policy.

Covered Loss – Covered losses change from policy to policy, but come in two major categories: specified perils include a list of perils against which the policyholder is insured, and open perils cover all losses unless they are specifically listed as being excluded (this typically includes flood and earthquake, where a separate insurance policy must be purchased to ensure protection).

Actual Cash Value – In the event of a loss, a policy that pays actual cash value will often pay fair market value – a dollar amount that a reasonable seller would accept, and that a reasonable buyer would pay. Other ways that actual cash value are determined may vary, so ask your insurance agent for an explanation of the calculation before you purchase a policy.

Replacement Cost – The alternative to actual cash value is replacement cost. If your commercial insurance policy offers replacement cost for your business’s property, you will be reimbursed according to the amount of money it would cost to replace the lost or damages property with new property if like kind or quality in your local market.

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Glossary of Business Insurance Terms | The Hartford

The Hartford’s glossary of business insurance terms helps business owners better understand the terms and definitions in their policies. Discover key business insurance terms and get a quote from The Hartford today.

When you buy business insurance, you’ll get a policy explaining your coverage and how it works. Chances are, there will be some words and terms within the policy that you don’t understand. To help understand what business insurance is and to better know what you’re reading, we’ve created this glossary of key business insurance terms and definitions.

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

This is a way to determine the value of your business’ property that is getting repaired or replaced after a covered loss. The value is calculated by subtracting depreciation from the replacement cost.

An additional insured on your policy means coverage is extended to a third party. This can happen if a client asks you to provide business insurance coverage to a general contractor before working with you.

Admitted insurance carriers follow state regulations. Non-admitted insurance carriers don’t follow these regulations. If an insurance company goes out of business, the state will make claim payments for admitted carriers, not non-admitted carriers.

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Commercial Insurance: Definitions and Explanations

Category: Commercial Insurance Terms

Our goal at Arnold Insurance is to make sure our customers understand their insurance options. Here are a few common insurance terms and their meanings.

Many insurance buzzwords are vague, ambiguous, and often poorly defined. Arnold Insurance believes it is crucial to go the extra mile to ensure that our customers understand the options available to them so they can make informed insurance purchasing choices. Below, you will find many common commercial insurance terms and their meanings.

General liability insurance is one of the most important insurance products businesses today can purchase in that it provides protection against financial losses related to injuries and property damage your business is responsible for.

Provides insurance protection for various vehicles used by the business. There are different types of business vehicle insurance available. Working with the team at Arnold Insurance can help you choose the right products for your business needs.

When an employee is injured on the job they must file a claim, which includes appropriate forms along with supporting documentation from the company, witnesses, and medical professionals before they can receive compensation.

This refers to one policy that provides different types of insurance protection into a single policy. This results in lower rates for the provided protection for business owners while ensuring basic coverage against specific perils. It is not meant to be an all-inclusive policy but does offer many of the insurance products most businesses commonly need.

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Glossary of Terms | Commercial Transportation & Trucking …

Insurance coverage that increases the limit of a primary policy should a catastrophic event ever occur. It is common for this to be written in excess of Auto Liability (AL), General Liability (GL), …

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Insurance Terms Dictionary • Updated October 2022 - Benzinga

Category: Commercial Insurance Definition Commercial Insurance

Dec 07, 2021 · Commercial Insurance Definition: Commercial insurance is an umbrella term for many different types of policies that offer coverage for corporations, small businesses and …

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Commercial Insurance Definitions And Terms

Category: Commercial Insurance

It is in our plans let alone or commercial insurance and definitions terms of the chance of events and suppliers will These include service interruption, contingent business interruption, …

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