Key Terms for Business Insurance
Here is a glossary of key terms for Business Insurance.
- Commercial Auto: Coverage for company owned vehicles and applies to autos hired or rented by employees or employee’s personal autos when used by employees on company business.
- Crime: Protects a business against dishonest acts of an organization’s employees including theft of company funds, company property, or fraud.
- Cyber / Media Liability: Covers losses that may result when a company engages in various electronic activities, such as selling on the Internet or collecting data within its internal network.
- Directors & Officers (D&O): Protects board members’ personal assets from lawsuits alleging wrongful acts brought by employees, shareholders, customers or suppliers
- Employment Practices Liability (EPL): Protects a company against wrongful termination, sexual harassment, or discrimination claims from the insured’s job applicants, employees, and former employees.
- Fiduciary Liability: Protects the company’s plan fiduciary, who can be held personally liable for losses to an employee’s benefits or 401(k) plan as a result of their alleged errors or omissions.
- General Liability and Property:
- General Liability responds to third party bodily injury and property damage.
- Property responds to fire, sprinkler leakage, and theft claims against company owned property.
- Key Person: An individual life insurance policy that covers a key person at a company and lists the company as the beneficiary.
- International Coverage: Can provide any combination of Workers Comp, General Liability, Property, Auto, Umbrella, Accidental Death & Dismemberment, and Kidnap & Ransom coverage for companies with offices overseas or that routinely send employees abroad
- Ocean Cargo / Inland Marine: Covers property in transit over land and at sea.
- Professional Liability (Errors & Omissions, E&O): Responds to lawsuits if a company commits an error or omission in the performance of their professional duties.
- Reps & Warranties: Preserves deal value by shifting potential liability for unintentional and unknown breaches of representations and warranties in the transaction documentation.
- Workers' Compensation: Covers medical expenses and lost wages for employees that are injured on the job. It is required by most states once a company starts payroll.