Common Business Insurance Terms EXPLAINED
We all know that business insurance can get very confusing very quickly. So, to help you out, we’ve made this handy list of common business insurance terms and what they mean!
Common Business Insurance Terms:
Actual Cash Value
The current market price of the property or item
People, other than the policyholder, who are covered under a policy
The value of your commercial property – determined by a tax official
Business Interruption Insurance
A policy that helps cover any loss of funds due to a forced closing (that is covered by the policy)
Business Owners Policy (BOP)
A policy for businesses that includes general liability and property insurance. It is a bundle that often helps businesses save money.
Certificate of Liability Insurance
A piece of paper that summarizes the most important pieces of information of a policy
Commercial Auto Insurance
An insurance policy that helps protect company vehicles or vehicles used for work
The amount your business will need to pay before the insurance policy covers the remaining balance.
Errors and Omissions Insurance
A policy that will help protect your business in case you face a claim due to negligence or mistakes.
The date when the policy coverage is finished.
This policy helps protect against lawsuits involving property damage or injuries that have been caused by a third party
The amount of time after a premium is due that the business can still pay without any penalty.
This the compensation you get for a loss.
Insurer or Insurance Company
The entity that sells insurance to your business. They do so by “underwriting”
The responsibility to pay, or perform some other action.
This policy helps protect your business against lawsuits regarding your responsibility.
The amount your business pays for coverage
Professional Liability Insurance
Simply another name for errors and omissions insurance
An insurance policy that helps protect your commercial property if there is an accident or damage.
An estimate made by an insurance company of the cost of coverage and cost of a policy.
The cost that it would cost to replace an item with a new equivalent.
Retroactive Date of Inception
The date when your errors and omissions coverage beings
This is an additional piece of coverage added onto a larger insurance policy. It may also be called an endorsement
Small Business Insurance
The insurance policy designed to help protect businesses against potential risks and accidents that may occur.
This policy helps protect employees if they sustain injuries or illnesses on the job
If you ever have any questions regarding your small business insurance policy, then call up your insurance agent. They can help you decipher any confusing terminology. They can also help answer any questions regarding a policy and what that policy may cover. After all, it can never hurt to ask!