Insurance Glossary for Brokers

A contractual requirement that the insurer provide at least 30 days written notice before canceling a policy, often required by certificate holders.

An agency professional who manages the day-to-day service needs of assigned commercial accounts including renewals and endorsements.

The standard certificate of liability insurance form used across the US insurance industry to evidence general liability, auto, umbrella, and excess coverage.

The standard evidence of property insurance form used primarily for homeowners and dwelling policies to verify coverage for lenders and mortgagees.

The standard evidence of commercial property insurance form used to verify property coverage details for lenders, landlords, and other interested parties.

The standard form used to provide insurance companies and producers with a consolidated summary of all coverages for a commercial account.

Standardized insurance forms and data exchange formats developed by ACORD to facilitate communication between agents, carriers, and vendors.

A valuation method paying replacement cost minus depreciation, reflecting the property's value at the time of loss considering age and wear.

Funds set aside by an insurer to pay future claims obligations, calculated using actuarial methods based on historical loss patterns and projected development.

A party added to a liability policy who receives coverage under the named insured's policy, typically required by contract.

The indication on a certificate of insurance that a third party has been added as an additional insured on the underlying policy.

A professional who investigates insurance claims, determines coverage applicability, and negotiates settlement amounts.

An insurance company licensed by the state department of insurance, subject to rate and form regulation, and backed by the state guaranty fund.

The tendency for higher-risk insureds to seek coverage more aggressively, creating a pool skewed toward worse-than-average risks.

Explicit, intentional cyber coverage written into a policy with clear terms, conditions, and limits for cyber-related losses.

A billing method where the agency collects premium from the insured, deducts its commission, and remits the net to the carrier.

The core software platform used by insurance agencies to manage clients, policies, documents, commissions, and workflows.

The licensed agent or agency officially recognized by the carrier as the representative for a specific insured's policy.

The maximum total amount the umbrella or excess policy will pay for all claims combined during the policy period.

A reinsurance or excess insurance mechanism that caps the total losses an insured or self-insured entity will pay in a policy period, protecting against accumulation of losses.

A property valuation option where insurer and insured agree on property value upfront, suspending the coinsurance penalty clause.

A workers comp endorsement extending coverage to a client company using the named insured's employees, such as through a staffing or temp agency arrangement.

A property policy provision allowing either party to demand an independent appraisal to resolve disputes over the amount of a loss.

A state-managed market of last resort for employers unable to obtain workers compensation coverage in the voluntary insurance market.

The additional premium owed (or refund due) after the annual payroll audit adjusts workers comp premium based on actual versus estimated exposure.

How the umbrella policy provides excess auto liability coverage above the commercial auto policy and addresses auto-related gaps.

A wallet-sized document proving auto insurance coverage that must be carried in the vehicle, required by state law in most jurisdictions.

No-fault coverage paying medical expenses for occupants of the insured vehicle regardless of who caused the accident.

Third-party liability coverage for aircraft owners and operators covering bodily injury, property damage, and passenger liability arising from aircraft operations.

An insurer's unreasonable denial, delay, or underpayment of a valid claim, exposing the carrier to damages beyond policy limits.

A surety bond submitted with a contractor's bid guaranteeing they will enter into the contract and provide required performance and payment bonds if awarded the project.

A temporary agreement providing immediate insurance coverage until the formal policy is issued, typically valid for 30 to 90 days.

An endorsement that automatically grants additional insured status to any party the named insured is contractually required to add.

A certificate indication that the insured carries a blanket additional insured endorsement covering any party required by contract.

A single property insurance limit covering multiple buildings, locations, or categories of property rather than scheduling each separately.

An endorsement that automatically waives the insurer's subrogation rights against any party the insured is contractually required to waive against.

Coverage for a tractor-trailer's power unit when driven without a trailer and not under dispatch by a motor carrier.

Physical injury, sickness, disease, or death sustained by a person, including resulting mental anguish — a core insuring agreement term in CGL policies.

Cyber coverage for the cost to replace hardware and IoT devices rendered permanently inoperable by a cyberattack.

A written authorization from the insured directing a carrier to transfer the servicing of their policy to a new broker or agent.

A small excess liability layer placed between the primary policy and the main umbrella to absorb claims that slightly exceed primary limits.

Temporary property coverage for buildings under construction, renovation, or installation, covering materials, equipment, and the structure in progress.

Property coverage protecting buildings under construction against physical damage from fire, wind, theft, and other covered perils during the construction period.

The primary ISO form (CP 00 10) providing property coverage for commercial buildings, business personal property, and personal property of others.

The standard ISO form (CA 00 01) providing liability and physical damage coverage for business-owned vehicles.

Coverage replacing lost net income and continuing operating expenses when a covered peril forces a business to suspend operations.

First-party cyber coverage for lost income and extra expenses when a cyberattack disrupts the insured's business operations.

Movable property owned by the insured used in business operations, including furniture, equipment, inventory, and supplies at the insured premises.

A package policy combining commercial property and general liability coverage into a single form, designed for small to mid-size businesses with standard insurance needs.

A written notice from the insurer informing the insured and certificate holders that a policy will be canceled, typically with 30 days advance notice.

An insurance agent who represents a single carrier exclusively and does not own the book of business.

A licensed insurance company wholly owned by the organization it insures, used to self-fund risk while accessing reinsurance markets.

A licensed insurance company wholly owned by the organization(s) it insures, created to finance the parent's risks as an alternative to purchasing commercial insurance.

Coverage protecting the goods being transported by a motor carrier against loss or damage during transit.

The highest excess liability layer in a large program, designed to respond only to catastrophic losses that penetrate all lower layers.

A computer simulation that estimates potential losses from natural catastrophes using scientific and actuarial data.

Excess of loss reinsurance protecting the cedent against accumulated losses from a single catastrophic event across its portfolio.

The most restrictive ISO causes of loss form covering only fire, lightning, explosion, windstorm, hail, smoke, and a few other named perils.

An ISO causes of loss form covering Basic Form perils plus additional named perils including falling objects, water damage, and weight of ice.

The broadest ISO causes of loss form covering all risks of direct physical loss unless specifically excluded, shifting burden of proof to the insurer.

The insurance company that transfers a portion of its risk to a reinsurer through a reinsurance agreement.

The commission paid by a reinsurer to the cedent to compensate for underwriting, acquisition, and administration costs on ceded business.

The process of verifying that issued certificates accurately reflect policy coverage and meet all contractual requirements of the certificate holder.

The person or organization that requests and receives a certificate of insurance as evidence of the insured's coverage.

A standardized document summarizing an insured's coverage, issued to third parties as evidence that insurance is in force.

The formal title of the ACORD 25 form, serving as the standard document evidencing commercial liability coverages to third parties.

The systematic process of monitoring certificate expiration dates, compliance status, and renewal requirements across all accounts and certificate holders.

The standard ISO additional insured endorsement for ongoing operations, granting coverage to an additional insured for the named insured's current work.

The standard ISO additional insured endorsement for designated persons or organizations, providing broad ongoing operations coverage without a project limitation.

The standard ISO additional insured endorsement for completed operations, extending coverage to an additional insured after the named insured's work is finished.

Coverage for lost business income when a government order prohibits access to the insured's premises due to a covered loss at a nearby property.

A coverage trigger where the policy in effect when the claim is first reported responds, rather than the policy in effect when the injury occurred.

A policy that covers claims first made during the policy period, regardless of when the alleged error occurred, subject to the retroactive date.

A rating method that assigns premium rates based on the insured's industry classification code rather than individual risk characteristics.

A numeric code assigned by NCCI or state bureaus that categorizes the insured's business by type of work for workers compensation rating purposes.

The date on which a certificate of insurance expires, which corresponds to the underlying policy expiration date shown on the certificate.

The process of confirming that a certificate of insurance accurately reflects the underlying policy terms, limits, and endorsements.

A policy condition requiring the insured to carry coverage equal to a specified percentage of property value or face a proportional penalty at claim time.

The sum of loss ratio and expense ratio, indicating overall underwriting profitability. Below 100% means underwriting profit.

The percentage of premium paid by the carrier to the agent or broker as compensation for placing and servicing insurance business.

An agreement to terminate a reinsurance contract early, with a lump-sum payment settling all future obligations between the parties.

CGL coverage for bodily injury or property damage arising from the insured's completed work after it has been finished and handed over.

A single blended rate applied across multiple classifications or exposures to simplify premium calculation for an account.

Additional commission paid by a carrier to an agency based on meeting premium volume, growth, and profitability targets.

Coverage for lost income when a key supplier or customer suffers a property loss that disrupts the insured's business operations.

Coverage for income loss when a key supplier's or customer's operations are disrupted by a covered peril, even though the insured's own property is undamaged.

Coverage for third-party bodily injury and property damage claims, and cleanup costs, arising from pollution conditions caused by contracting operations.

CGL coverage for liability the insured assumes under a contract, such as indemnification obligations in a lease or subcontract agreement.

A policy condition requiring the insured to cooperate with the carrier's investigation, defense, and settlement of claims.

A legal analysis by an attorney evaluating whether an insurance policy provides coverage for a specific claim or situation.

The workers compensation statutory coverage section that pays benefits as required by state law, with no dollar limit on the insurer's obligation.

The employers liability section of the workers comp policy with specific dollar limits, covering employment injury claims outside the statutory system.

The event or condition that activates coverage under an insurance policy, such as an occurrence, a claim being made, or manifestation of injury.

Federally subsidized insurance protecting agricultural producers against crop yield losses from weather, disease, and price declines.

FMCSA's Compliance, Safety, Accountability score measuring motor carrier safety performance across seven behavioral categories.

Customer Service Representative: an agency staff member who handles routine client inquiries, certificate requests, and basic policy changes.

Coverage for threats to release stolen data, disrupt systems, or cause harm unless payment is made to the threat actor.

Insurance coverage for ransom payments, negotiation costs, and related expenses when a threat actor demands payment in exchange for not disrupting systems or releasing data.

Whether the umbrella policy covers cyber liability claims, which most standard umbrellas now explicitly exclude.

Coordinated process and coverage for managing a cyber event, including breach coaches, forensics, PR, and notification vendors.

Insurance covering losses from data breaches, cyberattacks, and technology-related liability exposures.

Unauthorized access to or disclosure of personally identifiable information or protected data held by an organization.

Coverage for a truck driving empty (without cargo) between deliveries while still under dispatch by a motor carrier.

A court ruling that determines the rights and obligations of parties under an insurance policy without awarding damages.

A carrier's formal refusal to quote or issue coverage for a submitted risk that falls outside its underwriting guidelines.

Legal expenses incurred in defending a covered liability claim, which may be inside or outside the policy limits depending on the form.

How the umbrella policy handles legal defense expenses—either within the policy limit (eroding it) or in addition to the limit.

A policy structure where defense costs reduce the available policy limit, common in professional liability and D&O policies.

A policy structure where defense costs are paid in addition to the policy limit, preserving the full limit for settlements and judgments.

Coverage for losses when a cyberattack or failure at a third-party service provider disrupts the insured's business operations.

The free-text section on the ACORD 25 certificate where brokers specify project details, contract references, and endorsement information.

A multiplier applied to current loss amounts to project their ultimate value as claims mature and develop over time.

A billing method where the carrier bills and collects premium directly from the insured and pays commission to the agency separately.

Liability coverage protecting corporate directors and officers personally against claims of wrongful acts in their management capacity.

Employment claims alleging adverse treatment based on protected characteristics like race, gender, age, disability, or religion, covered under EPLI.

Federal Department of Transportation regulations governing commercial vehicle operations, insurance, and driver qualifications.

An endorsement providing personal auto coverage for named individuals who do not own a personal vehicle but drive non-owned cars.

An umbrella policy feature providing primary coverage (subject to SIR) for claims covered by the umbrella but not by any underlying policy.

The insurer's obligation to provide and pay for a legal defense when a covered claim is made, even if the claim is groundless or frivolous.

The carrier's obligation to pay covered damages or settlements on behalf of the insured, as distinguished from the duty to defend.

Professional liability insurance protecting agents and brokers against claims of negligence, errors, or omissions in their professional services.

The policy limit field on the ACORD 25 certificate showing the maximum amount payable for all damages from a single occurrence.

Separate coverage for property damage caused by earthquake and earth movement, excluded by standard commercial property policies.

Electronic Data Processing coverage protecting computer hardware, software, data, and media from physical damage and data loss.

Coverage for claims arising from errors in the administration of the insured's employee benefits program, such as failing to enroll an employee.

Coverage Part B of the workers compensation policy, providing liability coverage for employment-related injury claims outside the workers comp statute.

Coverage protecting employers against claims by employees alleging wrongful termination, discrimination, harassment, retaliation, and other employment-related wrongful acts.

A written amendment attached to an insurance policy that adds, removes, or modifies coverage terms, conditions, or limits.

Coverage for cleanup costs, third-party bodily injury and property damage, and defense expenses arising from pre-existing or new pollution conditions at or migrating from a property.

Employment Practices Liability Insurance covering claims by employees alleging wrongful termination, discrimination, harassment, or other employment violations.

Coverage for sudden and accidental mechanical or electrical breakdown of equipment like boilers, HVAC systems, and electrical panels.

A form of professional liability insurance covering claims of negligent acts, errors, or failures to perform professional services.

Professional liability coverage protecting service providers against claims alleging negligent acts, errors, or omissions in the performance of professional services.

A legal doctrine preventing a carrier from denying coverage after its actions led the insured to reasonably believe coverage existed.

A document proving that insurance coverage exists, which may take the form of a certificate, binder, policy declaration, or evidence form.

A licensed intermediary authorized to place insurance with non-admitted carriers when coverage cannot be obtained in the admitted market.

A court judgment exceeding the insured's policy limits, potentially exposing the insured to personal liability for the difference.

A liability policy providing additional limits above underlying policies, typically following the same terms and conditions as the underlying coverage.

Non-proportional reinsurance where the reinsurer pays losses that exceed a specified retention amount retained by the cedent.

A policy provision that eliminates coverage for specific types of claims, activities, property, or circumstances.

The percentage of premium spent on operating costs and commissions, calculated as underwriting expenses divided by written premium.

A multiplier applied to workers compensation premiums based on an employer's actual loss experience compared to the expected losses for their industry classification.

A multiplier applied to workers compensation premium based on the insured's historical loss experience compared to industry averages.

The system of adjusting workers compensation premiums based on an employer's historical loss experience relative to similar employers in the same class.

The unit of measurement used to quantify the risk being insured and to which a rate is applied to calculate premium.

A provision in claims-made policies allowing the insured to report claims after the policy expires for acts occurring during the coverage period.

Coverage for expenses beyond normal operating costs incurred to continue business operations after a covered property loss.

Individual risk reinsurance negotiated on a case-by-case basis for specific policies that exceed the carrier's treaty capacity.

Coverage protecting plan fiduciaries against claims alleging mismanagement of employee benefit plans governed by ERISA.

CGL coverage for damage to premises rented to the insured caused by fire, with a separate sublimit typically $100,000 or higher.

The initial report of a claim or potential claim made by the insured to the broker or carrier after an incident occurs.

Cancellation of a policy effective on its inception date, as if coverage never existed, with full return of any premium paid.

A commercial auto rating method applying a single experience-based rate to all vehicles in a fleet, typically available for 5+ vehicles.

Federal government-backed flood insurance administered by FEMA, providing coverage for flood damage excluded by standard property policies.

An excess policy that adopts the same terms, conditions, definitions, and exclusions as the underlying policy it sits above.

First-party cyber coverage for hiring digital forensic investigators to determine the cause, scope, and extent of a cyber incident.

An arrangement where a licensed carrier issues a policy but cedes most or all of the risk to another entity, typically a captive or reinsurer.

Coverage for direct financial loss from fraudulent electronic transfer of funds from the insured's account by unauthorized means.

Coverage exposures not addressed by any underlying policy that may or may not be covered by the umbrella's drop-down provisions.

Specialized auto liability coverage for businesses that sell, service, repair, store, or park vehicles as their primary operation.

Specialized liability coverage for auto dealerships, repair shops, and service stations covering premises liability and liability arising from garage operations including customer vehicles.

Coverage for physical damage to customers' vehicles while in the insured's care, custody, or control at a garage operation.

The maximum total amount a CGL policy will pay for all covered claims during the policy period, excluding products-completed operations.

Employment claims alleging unwelcome conduct based on protected characteristics creating a hostile work environment, covered under EPLI.

Liability coverage for vehicles the insured rents, hires, or borrows, and for employee-owned vehicles used for business purposes.

Coverage for vehicles rented or leased by the insured for business use, typically designated by Symbol 8 on the Business Auto form.

Hired and Non-Owned Auto coverage, often added as a CGL endorsement for businesses with no owned vehicles needing auto liability protection.

Physical damage coverage for the body (hull) of a vessel or aircraft, protecting against collision, grounding, fire, and other perils.

Incurred But Not Reported reserves estimate the cost of claims that have occurred but have not yet been reported to the carrier.

Claims that have occurred before a financial reporting date but have not yet been reported to the insurer, requiring actuarial estimation for reserve adequacy.

Total claim costs including amounts already paid plus reserves for estimated future payments on open claims.

A licensed insurance professional who represents multiple carriers and owns the book of business, not a single carrier.

A broad category of coverage for property in transit, movable equipment, and specialized property not adequately covered by standard property forms.

Coverage for property in transit over land, movable equipment, property in the care of bailees, and instrumentalities of transportation and communication.

Inland marine coverage for materials and equipment during transit and installation at a job site until the project is accepted by the owner.

Professional liability insurance for insurance agents and brokers covering claims of negligence in placing, servicing, or advising on insurance coverage.

An electronic data exchange network connecting insurance carriers and agencies for automated policy, billing, and claims downloads.

A federal law allowing seamen and maritime workers to sue their employers for negligence, requiring separate coverage beyond standard workers compensation.

Life insurance purchased by a business on the life of a key employee or owner, with the business as beneficiary, to protect against financial loss from that person's death.

A legal principle that bars coverage for losses the insured knew about or should have known about before the policy was purchased.

Notification of a claim to the carrier after the time period specified in the policy, potentially jeopardizing coverage.

The first umbrella or excess layer sitting directly above the primary policies, setting terms that higher excess layers typically follow.

Workers provided to the insured by a labor leasing firm under a long-term arrangement, whose workers comp coverage status must be clearly defined.

Coverage for bodily injury or property damage claims arising from the selling, serving, or furnishing of alcoholic beverages.

How the umbrella policy addresses liquor liability claims, which may be covered, excluded, or require specific underlying liquor liability coverage.

Coverage protecting businesses that sell, serve, or manufacture alcoholic beverages against claims arising from the actions of intoxicated persons they served.

A multiplier used to project immature loss data to its ultimate settlement value based on historical claim development patterns.

The percentage of premium consumed by claims, calculated as incurred losses divided by earned premium.

A report from a carrier detailing an insured's claim history including dates, descriptions, amounts paid, and reserves.

The umbrella policy condition requiring the insured to maintain all scheduled underlying policies at specified limits throughout the policy period.

A centuries-old maritime principle requiring all parties in a sea voyage to share proportionally in losses resulting from voluntary sacrifices made to save the vessel and cargo.

A federal endorsement guaranteeing minimum financial responsibility for motor carriers, required by FMCSA for interstate trucking operations.

No-fault CGL coverage that pays medical expenses for third parties injured on the insured's premises or by the insured's operations, regardless of liability.

A premium adjustment system for small employers below the experience rating threshold, based on whether they have had claims in prior years.

The lowest possible premium a carrier will charge for a workers compensation policy, regardless of the insured's payroll or classification rate.

A flexible professional liability form covering professions that do not fit standard E&O categories, tailored to the specific services provided.

Vehicles or equipment not subject to motor vehicle registration, covered under CGL rather than commercial auto policies.

A state where workers compensation insurance must be purchased from the exclusive state-run fund, with no private carrier option available.

The risk that having insurance coverage causes the insured to behave less carefully or even intentionally cause losses.

A business that transports goods or passengers for hire, subject to DOT regulations and requiring specialized commercial auto coverage.

Motor Vehicle Report showing a driver's license status, violations, accidents, and suspensions used for commercial auto underwriting.

The person or organization specifically named on the policy declarations page as the insured, receiving the broadest coverage under the policy.

A property insurance form that covers only losses caused by perils specifically listed in the policy, placing the burden on the insured to prove the loss was caused by a covered peril.

A percentage-based deductible triggered only when damage is caused by a storm officially named by the National Weather Service.

The National Council on Compensation Insurance, which develops workers comp classification codes, calculates experience mods, and provides rate recommendations.

Third-party cyber coverage for claims alleging the insured's network security failure caused damage to others.

Coverage for liability arising from vehicles not owned by the insured but used for business, such as employee personal cars.

Prior acts coverage provided by a new claims-made policy by setting the retroactive date to match the prior carrier's retroactive date.

First-party cyber coverage for expenses to notify affected individuals, regulators, and credit agencies after a data breach.

An accident or continuous exposure to conditions that results in bodily injury or property damage during the policy period, triggering CGL coverage.

A policy covering events that occur during the policy period regardless of when the claim is subsequently reported, common in CGL and auto policies.

The two primary coverage trigger types: occurrence policies cover events during the policy period; claims-made policies cover claims reported during it.

Coverage for increased costs when building codes require upgrades during repair or rebuilding of a damaged structure.

A policy provision that determines how coverage applies when more than one policy covers the same loss.

An additional commission percentage paid by a carrier on top of the standard commission, typically tied to volume commitments.

A surety bond guaranteeing that a contractor will pay subcontractors, laborers, and material suppliers on a construction project.

The annual review of an insured's actual payroll records to adjust workers compensation premium based on real exposure versus estimated figures.

Contractual penalties assessed by payment card brands against merchants who fail to comply with Payment Card Industry Data Security Standards.

The maximum amount a CGL policy will pay for all damages arising from a single occurrence, including bodily injury and property damage.

The maximum amount the umbrella or excess policy will pay for any single occurrence or accident, regardless of the number of claimants.

A surety bond guaranteeing that a contractor will complete a construction project according to the contract terms and specifications.

CGL Coverage B protecting against claims like libel, slander, false arrest, wrongful eviction, and copyright infringement in advertising.

Personal Injury Protection providing no-fault coverage for medical expenses, lost wages, and other costs regardless of who caused the accident.

Probable Maximum Loss: the largest loss expected from a single event at a specified probability level, such as a 250-year return period.

A CGL exclusion eliminating coverage for bodily injury or property damage arising from the discharge, dispersal, or release of pollutants.

The amount paid by the insured to the carrier in exchange for insurance coverage over a defined policy period.

A policy provision requiring the named insured's coverage to pay first and not seek contribution from the additional insured's own policy.

The indication on a certificate that the insured's policy is endorsed to be primary and noncontributory for the certificate holder's benefit.

Claims-made coverage for professional acts occurring before the current policy period but after the retroactive date, protecting past work.

Third-party cyber coverage for claims alleging the insured failed to protect personal information as required by law or contract.

The licensed insurance agent or broker who procures insurance coverage on behalf of the insured and is identified on certificates and policy documents.

CGL coverage for bodily injury or property damage caused by the insured's product after it leaves the insured's possession.

The separate aggregate limit for all CGL claims arising from the insured's products or completed work during the policy period.

The international term for professional liability/E&O insurance, covering claims against professionals for negligent acts, errors, or omissions in providing professional services.

Whether and how the umbrella policy covers professional liability claims, which are typically excluded from standard CGL and many umbrella policies.

Coverage protecting professionals against claims of negligence, errors, or failure to perform professional duties owed to clients.

A carrier program that shares underwriting profits with the agency based on the profitability of the agency's book of business.

A sworn statement from the insured documenting the facts, cause, and amount of a claimed loss, required by the policy as a claim condition.

Physical injury to or destruction of tangible property, including loss of use of that property, as defined in the CGL insuring agreement.

Third-party liability coverage for vessel owners covering bodily injury, property damage, pollution, and wreck removal obligations.

A policy endorsement requiring maintenance of specific safety equipment like sprinklers or alarms as a condition of coverage.

A licensed claims professional hired by the insured to represent their interests in negotiating claim settlements with the carrier.

A proportional reinsurance arrangement where the cedent and reinsurer share premiums and losses at a fixed percentage.

A policy restriction limiting commercial auto coverage to operations within a specified distance from the insured's base location.

Cyber policy provision covering ransom payments, negotiation costs, and related expenses when malware encrypts an insured's systems.

A formal submission by a carrier to a state insurance department requesting approval to use specific rates for a line of business.

Cyber coverage for legal costs defending against government investigations and enforcement actions following a data incident.

An automatic reinsurance agreement where the reinsurer agrees in advance to accept all risks that fall within defined parameters, without individual risk assessment.

A valuation method paying to replace or repair damaged property with materials of like kind and quality without deduction for depreciation.

A property coverage form where the insured reports actual property values periodically and premium adjusts based on reported values.

A carrier's formal notice that it will investigate and potentially defend a claim while preserving its right to deny coverage later.

The total amount of underlying insurance plus any SIR that must be exhausted before an umbrella or excess policy begins to pay.

The amount of risk or loss that the cedent keeps for its own account rather than transferring to a reinsurer.

The date on a claims-made policy before which acts, errors, or omissions are excluded from coverage regardless of when the claim is reported.

The transfer of reinsurance risk from one reinsurer to another reinsurer, effectively reinsurance of reinsurance.

A premium plan where the final workers comp premium is adjusted based on the insured's actual losses during the policy period, within a min/max range.

A refund of premium owed to the insured when the payroll audit shows actual exposure was lower than estimated, or when a policy is canceled mid-term.

The types, sizes, and characteristics of risks a carrier actively seeks to write in its portfolio.

A liability insurance company owned by its policyholders, formed under federal law to insure similar risks across state lines.

A discretionary premium reduction applied by an underwriter based on favorable risk characteristics beyond what class rating captures.

An endorsement that names a specific party as an additional insured on the policy, listed by name and address on a schedule.

Property coverage listing each building or item with its own specific coverage limit, providing certainty but risking underinsurance at individual locations.

Claims alleging violations of federal or state securities laws, typically covered under D&O Side C for public companies.

The dollar amount the insured must pay out of pocket on claims covered by the umbrella but not by any underlying policy, before the umbrella responds.

A written agreement allowing an agency to charge the client a fee for specific services beyond standard policy placement.

D&O coverage protecting individual directors and officers when the company cannot or will not indemnify them for covered claims.

D&O coverage reimbursing the company when it indemnifies directors and officers for covered claims under its corporate bylaws.

D&O coverage protecting the corporate entity itself against securities claims (public companies) or management liability claims (private companies).

Unintended cyber exposure embedded in traditional property and liability policies that neither explicitly cover nor exclude cyber losses.

Coverage for losses when employees are tricked into transferring funds or data through deceptive communications impersonating trusted parties.

Insurance covering financial losses when an employee is tricked by deceptive communications into voluntarily transferring funds or data to a fraudster.

Statement of Values: a schedule listing all insured property locations with their addresses, values, and construction details.

The admitted insurance market where carriers are licensed by the state, rates are regulated, and policies are backed by guaranty funds.

A detailed listing of all insured properties with their individual values, locations, and construction details submitted to the insurer for rating.

An employers liability endorsement added to the CGL policy for monopolistic state fund states where the state fund provides no Coverage Part B.

Aggregate reinsurance that caps the cedent's total losses over a policy period at a specified amount or loss ratio.

A claim resolution where payments are made over time through an annuity rather than in a single lump sum.

A policy purchased by general contractors that covers financial losses when subcontractors default on their contractual obligations, serving as an alternative to subcontractor surety bonds.

The package of information a broker sends to carriers requesting a quote on a new or renewal piece of business.

The insurer's legal right to pursue recovery from a third party responsible for a loss after the insurer has paid the insured's claim.

A three-party agreement guaranteeing that a principal will fulfill an obligation to an obligee, with a surety company backing the guarantee.

Insurance placed with non-admitted carriers when coverage is unavailable in the admitted (standard) market, subject to special regulatory requirements.

The non-admitted insurance market where unlicensed carriers write risks that the standard market cannot or will not insure.

A proportional reinsurance treaty where the cession percentage varies by risk size, ceding only amounts above the carrier's retention line.

Covered auto designation providing the broadest coverage, applying to any auto including owned, hired, non-owned, and borrowed vehicles.

Cyber coverage extension for losses caused by unintentional IT system failures, not just malicious attacks or security breaches.

An extended reporting period endorsement purchased when a claims-made policy is cancelled, allowing claims from prior acts to be reported after expiration.

Professional liability coverage tailored for technology companies covering errors in software, IT services, data processing, and tech consulting.

Vehicle tracking technology that monitors driving behavior, location, and diagnostics to improve fleet safety and reduce insurance costs.

Workers furnished to the insured by a temporary staffing agency for short-term assignments, whose workers comp coverage must be clearly assigned.

Coverage for losses resulting from acts of terrorism, backed by a federal reinsurance program under the Terrorism Risk Insurance Act (TRIA).

EPLI coverage extension protecting against discrimination or harassment claims made by non-employees such as customers, vendors, or clients.

Total Insured Value: the sum of all property values (building, contents, business income) covered under a policy or account.

The sum of all insured property values including buildings, contents, business income, and other covered property across all locations.

A standing reinsurance agreement covering all risks within a defined class, automatically ceding a portion to the reinsurer.

The ISO Truckers Coverage Form (CA 00 12) designed specifically for for-hire motor carriers transporting goods for others.

The critical distinction between umbrella policies that broaden coverage and drop down, and excess policies that only follow underlying terms.

A liability policy providing excess limits above underlying policies and broader coverage that may drop down to fill gaps in underlying coverage.

Umbrella policies provide broader coverage above underlying policies and can drop down for claims not covered below; excess policies strictly follow the terms of the underlying policy.

Coverage that pays when the at-fault driver's liability limits are insufficient to cover the insured's injuries.

The primary liability policies (CGL, auto, employers liability) that must be maintained as a condition of the umbrella or excess policy.

Documented criteria a carrier uses to evaluate, accept, price, and decline risks within a specific line of business.

Coverage protecting the insured when injured by a driver who carries no liability insurance or is a hit-and-run driver.

The United States Longshore and Harbor Workers Compensation Act, a federal law requiring maritime employers to provide workers comp benefits to maritime employees.

A policy condition reducing or eliminating coverage when a building has been vacant beyond a specified period, typically 60 consecutive days.

A property insurance policy where the insurer and insured agree on the property's value at inception, with that agreed amount paid in the event of a total loss regardless of actual cash value.

A workers comp endorsement extending statutory-like benefits to workers not legally required to be covered, such as corporate officers or sole proprietors.

Employment claims alleging violations of wage laws including unpaid overtime, minimum wage violations, and misclassification of employees.

A workers compensation endorsement waiving the insurer's subrogation rights against a specified party, commonly required by upstream contracts.

An endorsement where the insurer waives its right to seek recovery from a third party that caused a loss the insurer paid for.

Cyber policy exclusion barring coverage for cyber events attributed to nation-state actors or occurring as part of armed conflict.

A separate, typically higher deductible applied specifically to windstorm or hurricane damage on commercial property policies in coastal areas.

A minimum-premium workers comp policy for businesses with no employees, obtained solely to satisfy contractual requirements from GCs or project owners.

Mandatory insurance covering medical expenses and lost wages for employees injured on the job, required by law in nearly all US states.

A consolidated insurance program covering all contractors on a construction project under a single set of policies, either owner-controlled (OCIP) or contractor-controlled (CCIP).

An employment claim alleging that an employee was fired in violation of law or public policy, covered under EPLI policies.