Insurance Definitions

Here is some handy terminology. Please refer to your insurance policy for full, proper definitions and discuss with your Insurance Agent as you insurance needs change.

Building Insurance

Pertains to the building you own or are required by contract or lease to provide insurance for.


Business Owners Policy

Has been compared to a homeowner's policy for a small business. BOPs combine the basic coverages a typical small business needs into a comprehensive package at a premium that is generally less than would be required to purchase these coverages separately.


A typical BOP policy includes:
  • Property insurance - Covering buildings & business personal property such as equipment, inventory, tenant improvements and betterments, and furniture.
  • Business Interruption Insurance and Extra Expense - Will protect a company against losses resulting from a temporary shutdown because of fire or other insured peril. It will provide reimbursement for lost net profits and necessary continuing operating expenses. Liability Insurance - coverage for general liability, personal & advertising injury liability, product and completed operations liability, and fire legal liability.
  • Crime Insurance - covering loss of money or securities resulting from robberies or burglaries as well as losses from employee theft or embezzlement.
  • Hired and Non-owned Auto Liability - "Hired Auto Liability" provides liability protection for the company for vehicles they rent and "Non-owned Auto Liability" provides liability protection for vehicles not owned by the company (Example: an employee driving their own car during the course of conducting business).

Business Interruption Insurance

In the event that your income is affected by a covered loss, BI compensates you for your lost income up to the limits of your policy or until you can resume normal business.


Commercial Auto Insurance

A commercial automobile insurance policy provides coverage for legal liability for others' bodily injury or property damage arising out of the use of your business automobiles. Physical damage coverage protects your vehicles in case of accident or damage or damage caused by fire, hail, and other risks. You can designate coverage for owned vehicles as well as leased, hired and/or borrowed vehicles. More coverage options are also available.


Commercial General Liability

This is a broad, commercial policy that covers all liability exposures of a business that are not specifically excluded. Coverage includes product liability, completed operations, premises and independent contractors.   Premises liability covers liability for accidental injury or property damage that results from either a condition on your premises or your operations in progress, whether on or away from your premises (such as a slip and fall claim). Landlords often require this coverage as part of their lease agreements for a leased space.
  • A products liability hazard exists for any business that manufactures, sells, handles, or distributes goods or products. The hazard being the potential liability for bodily injury or property damage that arises out of your goods or products. Completed operations covers your potential liability for bodily injury or property damage that arises out of your completed work.
  • Personal and advertising injury includes libel, slander or any defamatory or disparaging material or a publication or utterance in violation of an individual's right of privacy; infringing the privacy or copyright rights of another in your advertisement; wrongful entry or eviction, or other invasion of the right of private occupancy; and false arrest or wrongful detention.


The major exclusions under a commercial general liability insurance policy typically include: intentional injury; insured contracts; liquor liability; workers compensation and employers liability; pollution; aircraft; automobile; watercraft; mobile equipment; war; care, custody, and control; damage to your work; impaired property; sistership liability; and failure to perform.


Contents Insurance

Coverage for your business personal property against many risks of loss generally including: fire, vehicle damage, windstorm and theft to name a few.


Garage Keepers Legal Liability

Garage Keepers Legal Liability is a very important coverage for the owners of Auto Repair and Auto Body businesses. This is not Garage Liability. This coverage insures the value of customer cars left in your care.


Garage Liability Insurance

Garage Liability Insurance is a very important coverage for the owners of Auto Repair and Auto Body businesses. This is protection for you and any additional insureds you designate from third-party liability – includes liability from trips and falls as well as accidents while test driving customers’ cars.


On-Hook Towing Coverage

On-Hook Towing coverage provides physical damage coverage for a customer's auto or watercraft while you are towing it. The protection includes damage caused by fire, theft, explosion, vandalism or a collision.


Package Policy

A package policy is a single insurance policy that combines several coverages previously sold separately.


Property/Casualty Insurance

Covers damage to or loss of policyholders’ property and legal liability for damages caused to other people or their property.


Umbrella Insurance

This can supplement your current coverage by increasing the underlying limit to your current liability policy.


Workers’ Compensation

Required by law to cover any on the job employee accident and designed to pay for medical care and physical rehabilitation. It helps to replace lost wages while the injured is unable to work. State laws vary significantly and govern the amount of benefits paid and other compensation provisions.