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Abandonment: As used in property insurance, prohibits the insured from abandoning damaged property to the insurance company for repair or disposal
  
Accounts Receivable Coverage: Covers loss of sums owed to the insured by its customers that are uncollectible due to damage by an insured peril to accounts receivable records
  
Actual Cash Value (ACV): Cost to repair or replace damaged property with materials of like kind and quality, less depreciation
  
Additional Insured: A person or organization for whom insured status is arranged by endorsement
  
Advertising Injury: General liability coverage that insures against libel, slander, invasion of privacy, copyright infringement and misappropriation of advertising in connection with the insured's advertising of its goods or services
  
Aggregate: The maximum amount an insurance company will pay during the policy
  
All Risk Coverage: Property insurance covering loss arising from all causes of loss except those that are specifically excluded
  
Application: A form with the information needed for an insurance company to underwrite and rate a specific policy
  
Audit: A verification of the financial records, usually payroll or receipts, of an organization to determine exposures and premiums
  
Automobile: A land motor vehicle, trailer or semi-trailer designed for travel on public roads, not including 'mobile equipment'
  
Bailee Coverage: Coverage on property left in the care of the insured for storage, repair or servicing
  
Basic Cause of Loss Form: Property coverage for named perils: Fire, Lightening, Explosion, Smoke, Windstorm, Hail, Riot, Civil Commotion, Aircraft, Vehicles, Vandalism, Sprinkler Leakage, Sinkhold Collapse and Volcanic Action
  
Basic Limits: The minimum limits of liability that can be carried by an insured
  
Best's Rating: A rating system by A.M. Best Company giving the financial condition of insurance companies
  
Binder: A legal agreement issued on behalf of insurance companies to provide temporary evidence of insurance until a policy can be issued
  
Bodily Injury by Accident Limit (Workers' Compensa: The most an insurer will pay under Part Two of a Workers' Compensation Policy for claims arising out of any one accident, regardless of how many employee claims arise out of the accident
  
Bodily Injury by Disease, Each Employee (Workers' : The most an insurer will pay under Part Two of a Workers' Compensation Policy for damages due to bodily injury by disease to any one employee
  
Bodily Injury by Disease-Policy Limit (Workers' Co: The most an insurer will pay under Part Two of a Workers' Compensation Policy employee bodily injury by disease claims during the policy period regardless of the number of employees who make such claims
  
Bodily Injury Liability Limit: The insured is legally liable for damages due to bodily injury, sickness, or disease, including resulting death
  
Boiler & Machinery Insurance: Coverage for loss caused by mechanical or electrical equipment breakdown, including damage to the equipment
  
Bond: A written agreement in which one party, the surety, guarantees the performance or honesty of a second party, the principal (obligor), to the third party (obligee) to whom the performance or debt is owed
  
Brands and Labels Endorsement: Property insurance coverage that allows the insured to remove labels from damaged goods or mark the items as 'salvage,' provided the goods are not damaged in the process
  
Broad Causes of Loss Form: Property coverage for the named perils: Fire, Lightening, Explosion, Smoke, Windstorm, Hail, Riot, Civil Commotion, Aircraft, Vehicles, Vandalism, Sprinkler Leakage, Sinkhole Collapse, Volcanic Action, Breakage of Building Glass, Falling Objects, Weight of Snow, Ice or Sleet, Water Damage (in the form of leakage from appliances) and Collapse from Specified Causes
  
Building Ordinance Coverage: Covers against loss caused by enforcement or ordinances or laws regulating construction and repair of damaged buildings
  
Burglary: Theft of property by forcible entry, which is evidenced by visible signs, in a premises, by a person
  
Business Auto Policy: Auto Policy for businesses that includes auto liability and auto physical damage coverages
  
Business Income Coverage: Insurance covering loss of income by a business when operations are interrupted due to property loss that is a covered cause of loss
  
Business Interruption Coverage: See Business Income Coverage
  
Business Owners Policy (BOP): A policy that combines property and liability coverages for special types of small businesses
  
Cancellation: The termination of an insurance policy usually before its expiration
  
Care, Custody or Control: An exclusion of liability insurance which eliminates coverage for damage to property in the insured's care, custody or control
  
Carrier: The insurance company which provides coverage
  
Casualty Insurance: Insurance that covers loss caused by injuries to persons and the legal liability imposed on the insured for injury or for damage to property of others
  
Catastrophe: A severe loss causing sizable financial loss
  
Causes of Loss Forms: The commercial property forms that define the covered causes of loss for which coverage is provided. Commonly, there are 3 Cause of Loss Forms: Basic, Broad and Special
  
Certificate of Insurance: A document providing evidence that insurance has been purchased
  
Claim: A request by a policyholder or a claimant for payment under a policy of insurance
  
Claim Expense: Expenses of settling or investigating a claim
  
Claimant: The person presenting a claim
  
Claims Reserve: An amount of money set aside to meet claims reported but not paid
  
Class: A group of businesses who have common or similar exposures and are grouped together for rating purposes
  
Classification: The arranging or establishing of business groups or categories for rating purposes
  
Coinsurance Provision: An insurance provision for property coverages in which the policyholder must carry an amount of insurance that is at least equal to a set percentage of the value of the property in order to receive full payment of a loss
  
Collapse: Collapse of a building and collapse of personal property within a building due to specified causes (such as weight of snow, ice or rain). Does not include collapse due to design error or due to faulty workmanship or materials if the collapse occurs after construction is complete
  
Collision Insurance: Provides for payment to a covered automobile resulting from the striking of another object by a moving vehicle
  
Commercial General Liability Policy (CGL): A coverage which protects business organizations against liability claims for bodily injury and property damage. Those claims may be the result of events at your place of business, from your business operations, the products or services you make or do, communications or advertisements your business broadcasts
  
Competitive State Funds: State-owned and operated facilities that write Workers' Compensation Insurance solely for that state
  
Completed Operations: A General Liability coverage for the work of the insured that has been completed away from the business premises
  
Comprehensive Auto Coverage: Covers an automobile for loss or damage for all causes except for those specifically excluded
  
Compulsory Insurance: Insurance that is required by law
  
Concealment: Failure to disclose facts which may void an insurance policy
  
Conditions: Things agreed upon in an insurance policy that state the rights and the requirements of the insured and the insurer
  
Consequential Loss: An indirect loss such as the reduction in value of property that is the result of a direct damage loss
  
Constructive Total Loss: Term used when damage to property is more than the value of the property
  
Contract: An agreement between two or more parties with characteristics of mutual assent, competent parties, a valid consideration and legal subject
  
Countersignature: The signature of a licensed agent or representative on a policy that is required to validate the policy
  
Cumulative Injury: A type of injury which occurs from the repetition of tasks over an extended length of time
  
Data Processing or EDP Coverage: All risk property insurance for electronic data processing equipment (computers), computer programs and data including mechanical breakdown, electrical injury and changes in temperature and humidity
  
Debris Removal: The cost of removal of debris from covered property damaged by an insured peril
  
Deductible: The amount of loss which is paid or absorbed by the insured prior to determining the insurance company's liability
  
Deposit Premium: The amount of premium required at the beginning of a policy prior to the actual premium being determined
  
Depreciation: The reduction in value of property over a period of time. Usually as a result of age, wear and tear, or economic obsolescence
  
Direct Damage: Causes of loss that produce direct and straightforward property damage (without interruption in time or deviation in space) from the cause of the event to the damaged property
  
Driver Other Car Endorsement: An endorsement that can be added to an automobile policy that gives protection while the insured designated in the endorsement is driving a car other than the one named in the policy
  
Drop Down Provision: A clause used in Umbrella policies providing that the Umbrella will 'drop-down' over underlying policy aggregate limits when they have been reduced or exhausted
  
Earned Premium: The amount of premium that has been used for certain periods of time
  
Earth Movement or Earthquake Exclusion: An exclusion found in most property insurance policies eliminating coverage for earth movement or earthquake, except ensuing fire
  
Effective Date: The date on which an insurance binder or policy goes into effect
  
Electrical Damage or Injury Exclusion: An exclusion usually contained in property insurance policies eliminating coverage for damage to electrical appliances caused by artificially generated currents, except for ensuing fire or explosion
  
Employee Dishonesty Coverage: Coverage for theft of money, securities or property by an employee
  
Employee Leasing: A staffing method which an employee leasing company provides all or most of its client's employees
  
Employers Excess Indemnity Insurance: Insurance coverage purchased by employers that do not subscribe to the Texas Workers' Compensation law
  
Employers Liability Coverage: Part 2 of the Workers' Compensation policy which pays on behalf of the employer all sums that the employer becomes legally obligated to pay because of bodily injury by accident or disease sustained by any employee of the insured arising out of and in the course of his employment by the insured
  
Employment Practices Liability Insurance: A form of liability insurance covering wrongful acts arising from employment practices such as wrongful termination, discrimination and sexual harassment
  
Endorsement: A document attached to an insurance policy that changes the original policy provisions
  
Equipment Floater: A property insurance coverage for equipment that is often moved from place to place
  
Estimated Premium: A preliminary premium amount that could be adjusted based on a variance in exposures
  
Excess and Surplus Lines Insurance: Coverage that is provided by insurers not licensed in the states where the risk is located
  
Excess Liability Policy: A policy that provides additional limits in excess of an underlying liability policy
  
Exclusion: A circumstance or peril that is not covered by the policy
  
Expected or Intended: An exclusion for injury or damage that is expected or intended
  
Expediting Expense Coverage: Coverage providing reimbursement of expenses for temporary repairs and costs incurred to speed up the permanent repair or replacement of covered property or equipment
  
Expense Constant: A small flat expense charged to Workers' Compensation policies
  
Experience Modifier: A debit or credit factor developed by measuring the difference between the insured's actual past experience and the expected or actual experience of the class of business
  
Expiration: The ending date of an insurance policy
  
Exposure Base: The basis of rates that are applied to determine premium. Some exposures may be measured by payroll, receipts, sales, square footage, area, man-hours or per unit
  
Extra Expense Coverage: Coverage for reimbursement of expenses in excess of normal operating expenses that are incurred to continue operations after a direct damage loss
  
Extraterritorial Coverage: The coverage for extending workers' compensation law to provide benefits for workers hired in one state but injured while working in another state
  
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