Insurance has a language that can be hard to understand. Allow us to help with some translation.
This is an industry standard form used to create a certificate of insurance (COI).
This is the method of determining the value of property that has been damaged. It is based on the cost to repair or replace the property, less depreciation.
This is another person or business who is not the named insured but is listed on your insurance policy. An additional insured also can file claims of their own under the policy. Additional insureds can be listed individually or on a blanket basis. For example, a construction company with this type of endorsement could extend coverage under their policy to contractors and subcontractors.
This is the maximum amount an insurer will pay for covered losses over a specified period of time.
An appraisal is an assessment of a property's value by an independent professional.
An alternative to going to court where a neutral third-party is used to settle a dispute. In insurance, the dispute is between an insurer and a policyholder.
This can include physical injury, sickness, or disease.
A specialized type of property insurance designed to cover materials, fixtures, and/or equipment used in the building or renovation of a structure in case of a loss or damage.
An organization that produces and sells products or provides a service. Businesses can be structured as a sole proprietorship, partnership, limited liability company (LLC), among others.
Also known as Business Income Insurance, this coverage helps cover business' income and operational expenses associated with a covered loss that requires a business to suspend operations, such as after a fire or damage to property on the premises.
A policy that combines different types of coverage, often general liability and commercial property insurance.
This covers the cost to repair or replace business property, such as computers, furniture, and inventories if they’re lost, damaged, or stolen. It generally does not cover property stolen by an employee.
This is a person or entity who has a certificate of insurance (COI) in their possession. That could be the policyholder, or a person or entity who has asked the policyholder for a COI to prove the policyholder has insurance. Being a certificate holder does not necessarily mean you are covered by the policy.
This is a document your insurer provides to prove you have an insurance policy. It summarizes important information about the policy, such as types and limits of your coverage, your insurance provider, policy number, named insured(s), and coverage start and end dates.
A demand for your insurance company to pay for a loss.
The person or business that makes a claim to the insured person or their insurance company.
This type of policy covers claims that are made against the insured during the policy period. Claims made after the policy ends would not be covered.
This refers to the type of industry your business falls into, for instance “construction” or “professional services.” It is used in the insurance industry to help insurers easily determine risk in order to set coverage limits and premium costs.
This type of policy covers vehicles owned by a business and their use for business purposes.
This insurance covers your building and other business property from loss or damage due to a fire, storm, or other natural disaster. It generally doesn't not cover damage from earthquakes or floods.
An insurance policy form that changes or adds to the provisions included in one or more other forms used to create the policy. An Additional Insured is an example of an endorsement.
This type of coverage can help cover the costs of legal claims or damage caused by errors or unintentional omissions from your work. It is sometimes referred to as Professional Liability insurance.
This business insurance covers costs from third-party accidents, third-party bodily injury, and third-party property damage that results from your products, services, or business operations. It is sometimes called commercial general liability (CGL) insurance.
This type of policy can help to cover costs if your tools and equipment get damaged, lost, or stolen while in transit or while temporarily stored at a place other than your main business location.
This is an endorsement where an insurer makes a claim payment to a third party for a loss instead of the named insured or beneficiary. It’s often included when more than one person has a financial interest in property or equipment. For example, the bank who financed the purchase of your company van could be added to a loss payable provision.
The loss payee is the person who is entitled to payment when an insurance claim is settled. In some cases, that’s the policyholder. Loss payees are included in a Loss Payable Provision.
'Primary' means your insurance policy will respond to a covered claim first before another policy that may cover the same claim. 'Non-contributory' means that the policy is required to respond to a covered claim without requesting that the other policy contribute to paying for that claim. This endorsement can be added when an additional insured is covered under the policy.
This is the maximum amount of coverage offered under a general liability insurance policy, which covers you for claims and lawsuits related to injury, illness or property damage caused by your delivered product or completed service.
Professional liability insurance is a policy that covers some costs associated with claims or lawsuits of mistakes or negligence. It also can be referred to as Errors & Omissions (E&O) insurance.
This is also known as an Endorsement (see definition above)
Subrogation is a right your insurer may have under an insurance policy to recoup costs from a negligent third-party on a claim paid under your insurance policy. For example, a subcontractor on your project damages one of your equipment storage sheds. Your insurer pays you for the claim and then pursues the subcontractor’s insurance company to recover the money.
A “waiver of subrogation” is an endorsement on an insurance policy that prevents your insurer from recovering money it paid for a loss from a negligent third-party.
*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated insurance carrier by AM Best. Harborway Insurance is a brand name of Harborway Insurance Agency, LLC, a licensed insurance producer in all 50 states and the District of Columbia. California license #6004217.