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
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-A-
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| ACCOUNTS RECEIVABLE - |
covers
the cost of restoring accounting records destroyed by an insured
peril. This will help you in collecting outstanding receivables
and will pay the interest lost due to the delay in collection
or the actual principal amount, which becomes uncollectable.
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ACTUAL CASH VALUE -
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the actual or current value
at the time of the loss. It contemplates replacing the damaged
article with one of similar condition (i.e. depreciation is
a factor.)
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ALL RISK -
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coverage is not specified by
listing the perils but rather perils are limited by way of exclusions,
which become the focal point of the wording. |
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-B-
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BONDS -
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in broad terms these protect
the insured from dishonest acts performed by one or more of
his employees. The property insured is money, securities, and
other property (including merchandise, stock, etc.). The employees
protected against can be named individually or by the position
they hold within the firm with the limit of coverage being per
employee or an overall aggregate limit regardless of the number
of employees involved.
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BODILY INJURY -
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the injury or damage caused
to a third party. This would also include sickness or disease.
Personal injuries such as libel, slander, or defamation fall
under the "Personal Injury" rider.
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BOILER & MACHINERY-
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a form of insurance protecting
against loss due to accidents arising from boilers, pressure
vessels (including hot water heaters), or machinery. Refer to
the exclusion section of your all risk policy and you will see
that a wide spectrum of explosion type losses are not covered
hence you may need this very important form of protection.
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BURGLARY -
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the crime coverage section
of your policy is subject to very specific definitions. Burglary
means there are visible signs of forced entry or exit into or
out of the insured premises. Safe burglary is not automatically
included in this cover and needs to be specifically added.
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BUSINESS INTERRUPTION -
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a policy that protects against
the loss of earnings and pays for continuing expenses as a result
of an insured peril. There are three basic forms of cover:
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extra expense (see also "extra expense")
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loss of earnings
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loss of profits
Note if you are carrying Boiler and Machinery
coverage, it too should have Business Interruption as part
of it’s insuring agreements.
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BYLAWS -
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many municipalities have laws
in place that control the type of construction that may be acceptable
in today’s environment. As an example, frame buildings
may have to be replaced with steel or brick. The insurance policy
is required to respond with like construction materials as those
that were destroyed. This increased cost of construction as
well as other costs can be covered by use of a by-laws endorsement.
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-C-
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CO-INSURANCE CLAUSE -
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a clause providing for the
sharing of a loss between the insured and the insurer. From
your perspective it is a clause that could reduce the amount
of your claim should you be in violation of the clause.
Insurance on policies carrying co-insurance
clauses require an insured to carry a certain percentage,
usually 80%, 90%, 100% of insurance in relation the value
(actual cash value or replacement value) of the property.
If you fail to maintain insurance to the stipulated percentage
you will be paid a corresponding lesser amount at the time
of a loss. In simple terms this can be stated in the following
formula:
Limit carried
----------------------------------- X amount
of Loss = Claim Paid
Limit should have carried
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COMMERCIAL PROPERTY FLOATER -
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because the standard policy
wordings cover property only while on your premises you may
need a "floater" form of coverage to protect property, which
is away from your premises. This would include such things as
contractors equipment, salesman’s samples, tools, etc.
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COMPLETED OPERATIONS -
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where
there is work performed away from your premises there is a need
to continue your liability protection after you have left the
job site.
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CONTRACTUAL LIABILITY -
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this coverage protects you
against liability you assume by contract either written or implied.
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-D-
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DEDUCTIBLE -
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is the amount of the loss you
agree to pay. Small claims are expensive for an insurance company
to adjust in relation to the size of the loss, so a provision
is made whereby you agree to pay these claims yourself in return
for a reduced premium. You must take care in weighing premium
savings against higher deductibles.
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DEMOLITION CLAUSE -
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your policy covers only the
direct damage to your building therefore it is necessary to
also cover the cost of removing the undamaged portion as well.
You may have a concern with your local by-laws as well.
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DEPOSIT PREMIUM -
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this is often called an advanced
premium and is a premium paid at the inception of the policy
when there is likely to be a substantial variation in values
over the policy period. At the end of the term the actual premium
is calculated against the actual values at risk and a refund
or additional charge is applied. This same principal applies
when receipts or payroll are the basis of the premium computation
such as in liability policy.
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DISAPPEARING DEDUCTIBLE-
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uses a formula whereby the
deductible applies in small losses and is gradually reduced
as the size of the loss increases, so that in larger losses
the insurance pays the loss in full.
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-E-
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EMPLOYER'S LIABILITY -
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covers the liability of an
employer against claims made by his employees. Employer's liability
affords protection to employers who do not come within the scope
of the Worker's Compensation Act. It is important to note this
is not a replacement option to Worker's Compensation.
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ERRORS & OMISSIONS -
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professional, semi-professional
and certain service industries place a higher duty to perform
and any error or omission may fall within the exclusions of
the "General Liability" policy in order to overcome this gap
in protection an "Errors and Omissions" rider will be required.
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EXTRA EXPENSE POLICY -
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is a form of business interruption
coverage, which picks up the extra costs of keeping your operation
going after a loss occurs. This could include such expenses
as the increase costs of moving to temporary premises or overtime
wages.
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-F-
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FIDELITY BOND -
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an agreement whereby the surety
(insurance company) agrees to reimburse an employer for a loss
arising out of a dishonest act by one or more of his employees.
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FORGERY -
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the fraudulent altering or
making of a document or the imitation of another signature to
the prejudice of another party's rights.
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-G-
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-H-
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HOLDUP -
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the taking of money or property
from another by violence or threat of violence. Remember that
the crime section of your policy is subject to specific definitions
if holdup is required; be sure it’s covered.
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-I-
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-J-
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-K-
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-L-
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LEASEHOLD IMPROVEMENTS -
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as a tenant, in addition to
insuring your inventory and equipment, you may have considerable
investment in leasehold improvements. It may be that these were
already in place but it is your responsibility to repair any
damage to the leaseholds - check your lease! Make sure your
policy limit reflects your obligation.
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LIABILITY INSURANCE -
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the type of insurance which
covers a named insured for his legal liability for injuries
or damage to others.
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LIMIT, AGGREGATE -
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maximum amount that will be
paid by the policy over the policy term. This applies to the
products and completed operations sections of coverage. If coverage
is used in these areas it is important to purchase more coverage.
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LIMIT, BASIC -
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the limit of insurance as applied
to the particular section of the policy, as for example the
limit to be paid as the result of one bodily injury or property
damage occurrence.
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-M-
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MALPRACTICE INSURANCE -
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insurance policies protecting
professionals against claims arising out of malpractice in their
profession. The policies generally extend to cover professional
misconduct but do not cover acts of violation of federal or
provincial statutes.
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MEDICAL PAYMENTS -
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is a "not at fault" voluntary
coverage provided under the liability section and also under
the crime coverage. The intent is to see that immediate medical
aid is provided to those injured in the conduct of our normal
business practice.
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MINIMUM PREMIUM -
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in some lines of insurance,
the premiums are so small that to continue the actual rate downward
in relation to the actual amount of insurance, would somewhere
produce a situation in which the cost of doing business would
be disproportionate to the actual risk involved. The underwriters
in these cases, require a minimum premium which covers the administrative
costs of issuing the policy.
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-N-
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NAMED PERILS POLICY -
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policies that specifically
state the perils against which protection is given and no others.
It is important to note the perils listed whereas with an "all
risk" policy it is important to note the exclusions.
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NON-OWNED AUTOMOBILE -
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protects you against the Third
Party claims arising out of your employees using their cars
to perform errands on your behalf during the course of business.
Note damage to the vehicle itself if not covered only bodily
injury and property damage done to third parties is covered.
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-O-
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-P-
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PERIL -
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a cause of loss e.g.: fire,
smoke, windstorm, theft, etc.
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PERSONAL INJURY -
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non-physical injuries including
libel, slander, false arrest and wrongful eviction.
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PREMISES -
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the building including the
lot it occupies and surrounding land within 100 feet
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-R-
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RENTAL INCOME INSURANCE -
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protection for you as landlord
when your premises become inhabitable due to an insured peril.
This cover guarantees payment of rent to you until repairs are
completed.
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REPLACEMENT COST CLAUSE –
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changes the insuring agreement
from paying you the actual cash value to full replacement value.
This is commonly called "new for old".
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REPORTING FORM -
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a method of insuring stock
when the values are likely to fluctuate over the course of the
policy period. The monthly reports are added then divided by
12 to obtain the proper average to which the rate is applied
and the proper premium is determined. Thus you only pay for
what you have at risk.
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ROBBERY -
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the taking of property of another
during which the person being robbed is put in fear of personal
violence (See also Hold-Up).
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SAFE BURGLARY INSURANCE -
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Protection against loss by
forcible entry into a safe. This coverage is not automatically
provided and must be added by a specific rider.
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SIGNS -
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Neon signs and painted signs
attached to a building are not generally covered in the building
fire policy, nor in the event of them belonging to the tenant,
by the tenant's contents policy, unless specifically included.
Glass or other fancy signs inside a building are also not covered
unless specifically included. Neither of these things are fixtures
or furniture.
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TRANSIT COVERAGE -
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the standard policy wordings
do not cover property in transit. This could be goods you have
on route to customers or incoming property to you. Collision
or upset damage, theft, vandalism and other perils are to be
covered under this form of protection.
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-U-
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UMBRELLA LIABILITY -
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A liability insurance policy
usually basically affording a high limit excess coverage by
frequently extending to pick up many forms of coverage that
may be missed between the prime policy companies.
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-V-
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VALUABLE PAPERS -
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items such as books of account,
maps, blueprints, mortgages, deeds, drawings could be lost by
an insured peril. The policy wordings allow only for the replacement
of blank books and record forms - this rider covers the cost
of recapturing the lost information.
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-W-
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WAIVER OF CO-INSURANCE -
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(2 per cent Waiver
(fire)) the 2 per cent waiver of co-insurance provides that
the co-insurance clause shall not apply where the total loss
does not exceed either 2 percent of the sum insured or the amount
of $2,500.00. This is to save the costs of appraisal, or inventory,
in relatively small losses.
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