Terms and Definitions

We know it can be tough getting through all of the insurance jargon, so we’ve included some definitions to help you understand. Read through the terms you don’t understand and skip the ones you do.

Accounts Receivable Coverage

  Pays the increased costs of collecting accounts, re-establishing the accounts receivable records and any amounts uncollectible    as a result of the destruction of accounts receivable records.

Back Up of Sewer or Drain Water Damage Coverage

  Protects your building and personal property from damage caused by water that backs up from a sewer or drain.

Bailee Coverage

  Protects the property customers put into your care for cleaning and storage.

Broadened Garage Liability Coverage

  Provides Coverage in case faulty work or a defective product causes damage.

Building Coverage

  Protects your building and on-site structures, machinery, equipment, floor coverings, outdoor furniture, garages, fences and          additions under construction.

Business Auto Coverage

  Protects your investment in your vehicle(s), damage to the property of others, injury to those involved in an accident, and the          future of your business – in case you become the target of a lawsuit—your investment in your vehicle(s) and the future of your        business – in case you become the target of a lawsuit.

Business Income Coverage – Business Interruption Coverage – Time Element Coverage

  Can reimburse you for your actual loss of income for up to 12 months due to a covered loss as well as necessary extra                    expenses needed to continue your operations while working to reopen your business.

Business Income from Dependent Properties Coverage

  Provides business income Coverage when a supplier or an anchor store you depend on to operate your business suffers a loss    of its own, forcing you to close temporarily until you find an alternate supplier or they reopen.

Business Personal Property Coverage

  Protects business personal property, such as furniture, fixtures, machinery or personal property of others that is in your care.

Business Personal Property Limit – Seasonal Increase Coverage

  Protects business personal property during predictable inventory increases during specific periods of the year.

Car Wash Damage to Customers’ Autos Coverage

  Protects against damage to your car wash or the vehicles that go through it.

Crime Coverage

  Protects your money from acts of crime, such as theft and fraud.

Customers’ Goods in Process Coverage

  Protects you for damage done to a customer’s clothing while you are working on the clothing.

Electronic Data Processing Coverage

  Insures against loss or damage to electronic data processing equipment and media owned, leased or used by the insured.

Employee Benefits Coverage

  Covers the cost to employees that results from incorrect information provided regarding their employee benefits. (For example,    not providing the employee with the appropriate COBRA information following termination, which results in the ex-employee

  losing benefits.)

Employee Dishonesty Coverage

  Protects the loss of money, securities and property from the fraudulent act of an employee.

Employment Practices Liability Coverage

  Provides coverage for you if any employee, former employee or applicant sues you for wrongful termination, discrimination or        harassment.

Equipment Breakdown Coverage

  Protects against damage caused by power surges, mechanical breakdown, motor burnout, and boiler damage.

Equipment Floater

  Provides coverage for business personal property, including equipment, while it is in the course of transit and temporarily at          premises the insured does not own.

Exterior Building Glass Coverage

  Provides coverage for damage to glass, including lettering or ornamentation, that is part of the exterior of a covered building.

Extra Expense Coverage

  Can help with extra expenses so you can continue operating your business, including repairing or replacing property, lost              information on valuable papers and records.

Fine Arts Coverage

  Provides coverage for pictures and other decorative items that serve a solely aesthetic purpose rather than a practical purpose.

Florist Misdelivery Coverage

  Provides Professional Liability coverage for florists, including incidents where an error or mistake was made in delivery.

Florist’s Holiday Coverage

  Provides for an automatic increase in the contents limit for major holidays, including Valentine’s Day and Mother’s Day.

Food Contamination Coverage

  Protects your restaurant from financial loss and works to rebuild your restaurant’s reputation.

Forgery and Alteration Coverage

  Can protect checks, drafts, promissory notes from forgery or alteration.

Garage Liability Coverage

  Protects your business from damage caused by faulty products or installation. It can also cover medical expenses, attorney fees    and damages when you’re legally responsible.

Garagekeepers Coverage

Protects an auto service shop against liability for damage to vehicles while in their care.

General Liability Coverage

  Can cover medical expenses, attorney fees and damages when you’re legally responsible.

Hired Auto Coverage

  Provides coverage for autos that are leased, hired or borrowed by your business.

Inland Marine Coverage

  Provides coverage for items such as tools and equipment that are mobile and may be taken off-site from your place of business.

Liquor Liability Coverage

  Can cover damage to people or property caused by someone who was served alcohol in your place of business and then does    damage to or injures themselves or someone else.

Live Animals in Transit Coverage

  Provides protection for loss or damage to animals from events like collision/overturn or theft while the animal is being


Loss to Client’s Animals Legal Liability Coverage

  Covers sums a veterinarian becomes legally obligated to pay for damage to a customer’s animal while it is in the vet’s care,            custody and control.

Medical Payments Coverage

  Can help cover the medical bills of people injured on your property or as result of your operations – and payment is issued            immediately, regardless of fault.

Money and Securities Coverage

  Provides protection for the theft, disappearance or destruction of your money – in the restaurant or with an employee or partner    off-site.

Musical Instruments Coverage

  Provides coverage for loss to musical instruments, sheet music, music stands, cases, accessories and stationary organs owned      by your business.

Non-Owned Auto Coverage

  Provides coverage for your employee’s auto while the employee is using their personal auto in your business.

Ordinance or Law Coverage

  Protects losses that result from the enforcement of ordinances or laws that do not permit restoring a building to the same              condition as existed prior to damage.

Outdoor Sign Coverage

  Protects your sign up to its value against perils such as hail, vehicle collision, fallen trees, etc.

Outdoor Trees, Shrubs and Lawns Coverage

  Protects outdoor trees, shrubs, plants and lawns from damages caused by fire, lightning, explosion, aircraft or vehicles, riot or        civil commotion, vandalism or theft.

Personal and Advertising Injury Coverage

  Insures against injury, including consequential bodily injury arising from oral or written publication of material that slanders or        libels a person’s or organization’s goods, products or services, the use of another’s advertising idea or infringing on another’s        copyright, trade dress or slogan in your advertisement.

Physical Damage to Autos Coverage

  Protects against loss or damage to autos that are a result of the use, maintenance or ownership of a vehicle.

Pollution Liability Coverage

  Protects from the liability that comes from pollution that is deemed to be caused by your shop.

Portable Tools (Inland Marine) Coverage

  Provides coverage for items such as tools and equipment that are mobile and may be taken off-site from your place of business.

Professional Liability Coverage

  Provides protection for defense costs, regardless of fault, and protection for judgments and court costs for any individual or            business rendering an opinion, making recommendations, designing solutions or offering a service.

Property Coverage

  Protects your building and personal property from fire and many other causes of loss. Personal Property of Others Coverage is      also included.

Robbery and safe burglary Coverage

  Provides protection against robbery of a safe or a messenger.

Sign Coverage

  Protects your sign up to its value against perils such as hail, vehicle collision, fallen trees, etc.

Spoilage Coverage

  Reimburses you for the lost perishables in your refrigeration units if they break down or the power goes out.

Stop Gap Coverage

  Provides coverages that state funded Workers Compensation policies do not include. Such coverages are normally included in      the private Workers Compensation policies offered in other states.

Tenants Property Damage Legal Liability Coverage

  Provides protection for a tenant when they are liable for damage to their landlord’s building.

Umbrella Coverage

  Is an extra layer of coverage to protect above the limits set by your current liability Coverage.

Utility Services Coverage

  Can cover damage to your office and stock due to a disruption of a utility, like electric, gas or water services

Valet Parking Coverage

  Can cover damage to customer vehicles caused by valets.

Valuable Papers Coverage

  Protects your valuable papers and records in case they are damaged. It can also cover the cost of reproducing them.

Workers Compensation Coverage

  Can pay for an injured employee’s medical treatment and replace part of lost wages if a job-related injury causes lost time from    work.