Blanket vs. Scheduled Locations
Locations that are automatically covered vs. locations specified in the contract
Coinsurance/Agreed Value
Coinsurance requirement is usually 80% replacement cost or some other Agreed value
Replacement Cost
The dollar amount needed to replace damaged personal property or dwelling property without deducting for depreciation but limited by the maximum dollar amount shown on the declarations page of the policy.
Actual Cash Value
Cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence. For example, a 10-year-old sofa will not be replaced at current full value because of a decade of depreciation.
Functional Replacement Cost
Modified replacement cost, when in older homes it may take a lot more money to repair with original type materials. Functionally equivalent materials can be used instead.

Causes of Loss

Special Perils
Perils above and beyond fire, lightning, and internal explosion that are not specifically excluded
Earth Movement
Meaning any loss caused by, resulting from, contributed to or aggravated by: an earthquake, landslide, mudflow, earth sinking, rising or shifting
A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties (at least one of which is your property) from: Overflow of inland waters, unusual and rapid accumulation or runoff of surface waters from ANY SOURCE, and mudflows
Sewer Backup
The escape of water from a sewer system or sump pump system; excludes seepage or leakage from natural sources
Utility Interruption On and Off Premises, Direct and Time Element
Any loss caused directly or indirectly by the failure of power or other utility service supplied to the described premises. Some contracts may have time deductibles
Ordinance and Law
Increased cost to: Repair or reconstruct damaged portions of that Building property; and/or reconstruct or remodel undamaged portions of that Building property whether or not demolition is required; when the increased cost is a consequence of enforcement of building, zoning or land use ordinance or law.”
A building with less than a set percentage of it’s square footage used by furniture or other
items for more than a specific time period, usually 60 days.

Covered Property or Loss

Improvements and Betterments
Tenant’s modifications of leased space to fit his particular needs
Property of Others
Property in the insured’s care, custody, and control not belonging to the insured
Business Income and Extra Expense
The cost an insured would incur if a loss interrupted normal business practices. Following a covered cause of loss, subject to the limit of insurance, Business Income/Extra Expense insurance is designed to pay net profit (or loss), continuing expenses and extraordinary expenses until operations are restored
Extended Period of Indemnity
A Business Income coverage that continues coverage for income losses for a period of time after operations have resumed.
Rentals Value
Insurance which reimburses a building owner against loss of rental income if the building is not usable by a tenant because of some cause of loss insured against
Leasehold Interest
Claim or right to enjoy the exclusive possession and use of an asset or property for a stated definite period, as created by a written lease.
Contingent BI and EE
Provides coverage for four types of dependencies: Contributing locations, recipient locations, leader locations, and manufacturing locations
Consequential Damage (spoilage)
Loss of product and loss of profit or revenue as an indirect result of a loss (such as spoilage of inventory)

Property Extensions or Limitations

Accounts Receivable
Insures against loss of sums owed to the insured by its customers that are noncollectable because of damage by an insured peril to accounts receivable records.
Data and Media Breakdown
Provides coverage to reconstruct computer data, software etc… after a covered peril, such as fire, destroys computer information and back-ups
Cost of Inventory and Appraisals
Inventory costs and appraisal costs due to loss or damage as a result of a Covered Cause of Loss
Fine Arts
Property such as paintings, etching, drawings, rare books, rugs, tapestries, art glass, stained glass, murals, decoratively painted walls and other bona fide works of art or other article of rarity, historical value or artistic mural . Coverage does not extend to items on display at exhibitions or trade fairs.
Exhibitions and Trade Fairs
Coverage provided for special events. Generally Exhibitors purchase, this insurance individually, but vendors must also carry it and may add exhibitors to their policy
Valuable Records Research
Provides coverage to reconstruct valuable papers after a covered peril, such as fire, destroys records
Manufacturers Selling Price
Typically used for businesses using LIFO inventory practices. This values any losses to stock at the manufacturer’s selling price minus any discounts or deductions the insured typically receives.
Inland marine coverage on metal molds and specialized tools needed to produce a customized metal part or housing. A tool and die policy may be necessary when such property is located at the premises of other manufacturers with whom the insured has contracted to supply certain custom components.
Personal Property Off Premises
Coverage extension that applies to property while it away from the declared premises if it is at a temporary location you do not own, lease or operate; or in storage at a location you lease provided the lease was executed at the beginning of the current policy term; or at fair trade show or exhibition
Property in Transit
Property you own and are picking up from others, or are delivering to others
Reporting Provisions
Allows an insured with fluctuating inventory values to establish a limit of insurance adequate to cover the highest possible exposed value, but to pay a premium based on the actual values exposed. Initial provisional premium is adjusted on the basis of required periodic reports of actual property values


Blanket Employee Dishonesty
Coverage for employee theft of money, securities, or property, written with a per loss limit, a per employee limit, or a per position limit.
Forgery or Alteration
Covers loss due to dishonesty in writing, signing, or altering checks, bank drafts, and other financial instruments


Theft, Disappearance and Destruction
Insures against loss by theft, disappearance, or destruction of the insured’s money and securities inside the insured’s premises (or insured’s bank’s premises) as well as outside the insured’s premises while in the custody of a messenger.
Computer Fraud
Insures against theft of money, securities, or property by using a computer to transfer covered property from the insured’s premises or bank to another person or place
ERISA Compliance
Coverage for exposure arising out of the responsibility as an officer or fiduciary of a company for the handling of pension funding and other employee benefit plans

General Liability

Coverage on Occurrence Form
An accident, including continuous or repeated exposure to substantially the same general harmful conditions.
Products/Completed Operations
Liability arising out of the insured’s products or business operations conducted away from the insured’s premises once those operations have been completed or abandoned.
Employee Benefits Liability
An error or omission in the administration of an employee benefit program, such as failure to advise employees of benefit programs
General Aggregate per Location/Site
The maximum limit of insurance payable during any given annual policy period for all losses other than those arising from the products and completed operations hazards.
Liquor Liability
Imposed on those selling alcoholic beverages, as well as the statutory liability established in some states
Fellow Employee Coverage
Provides coverage for claims made by an injured employee against a fellow employee who caused or contributed to the injury
Leased Worker Injury Extension
Coverage extension to leased or temporary workers
Joint Ventures
Business relationship in which two or more persons combine their labor or property for a single undertaking and share profits and losses equally, or as otherwise agreed. Usually excluded without an endorsement
World wide Coverage (Foreign)
An international insurance program of a multinational company with a policy territory encompassing the entire world except for the country in which the insured is domiciled.

Automobile Liability

Medical Payments
Optional coverage under an auto policy to pay for medical expenses for an insured who sustains bodily injury caused by an auto accident, without regard to fault
Comprehensive or Specified Perils
Any peril not specifically excluded in a policy
Provides for reimbursement for loss to a covered automobile due to its colliding with another vehicle or object or the overturn of the automobile.
Provides reimbursement for towing expenses
Rental Reimbursement
Coverage that provides reimbursement for the cost of a car rental while the
insured’s auto is unusable
Drive Other Car Liability and Physical Damage
Commercial auto endorsement designed to provide coverage similar to that which would be provided under a personal auto policy.
Hired and Non-Owned Auto Liability
Vehicles owned by employees and used for company business; as used in the truckers and motor carrier policies, it applies only if such autos are private passenger type autos.
Hired Car Physical Damage
Autos borrowed except those borrowed from employees or partners.
Individual as Named Insured
The individual is the insured who can change the policy.

Additional Insured

Vehicle Lessors
An insured lessor who cannot change policy terms.
Loss Payee
Lien Holders- A beneficiary of the policy

Business Specialty Liability

Fellow Employee Coverage
Endorsement to the business auto policy that provides coverage for claims made by an injured employee against a fellow employee who caused or contributed to the injury
Pollution Liability
Contamination of an environment by substances regarded as pollutants. Liability from pollution is normally excluded to some degree by the general, auto, and umbrella liability policies
Garage Liability
Insurance covering the legal liability of automobile dealers, garages, repair shops, and service stations for claims of bodily injury and property damage arising out of business operations.
Garage Keepers Coverage
Provides coverage to owners of storage garages, parking lots, body and repair shops, etc., for liability as bailees with respect to damage to automobiles left in their custody for safekeeping or repair
ICC Compliance (MCS-90)/Filings (Form E, Form H)
An endorsement that must be attached to the auto liability policy of certain regulated motor carriers to assure that federally mandated coverage (e.g., required liability limits, environmental restitution coverage) is in place

Workers Compensation

Part Three-Other States Coverage
Coverage for an insured’s employees traveling through or temporarily working in states other than the insured’s home state, as specifically listed in item 3.C of the information page of the policy. The endorsement expands the policy so that an injured employee can receive compensation benefits as prescribed by the other states listed on the endorsement
Voluntary Compensation
Enables an employer to extend the benefits provided by the workers compensation act to employees who may not be entitled to benefits under the terms of the act, such as executive officers, partners, sole proprietors, farm workers, domestic employees, or employees traveling overseas
Foreign Voluntary Compensation and Repatriation
Bringing back to one’s homeland, generally referring to transportation of an injured or ill employee back to his or her home country. This coverage is sometimes added to the workers compensation policy by a manuscript foreign voluntary compensation endorsement.
A federal law that provides no-fault workers compensation benefits to employees other than masters or crew members of a vessel injured in maritime employment—generally, in loading, unloading, repairing, or building a vessel. Employers can obtain coverage under a standard workers compensation policy by purchasing an LHWCA coverage endorsement.
Imposes a strict liability law on railroads with respect to injury to their employees in a manner very similar to workers compensation, but without the limitation on benefits provided under the workers compensation laws.
Alternate Employer
An endorsement to a workers compensation policy that provides an entity scheduled as an alternate employer with primary workers compensation and employers liability coverage as if it were an insured in the policy. This endorsement is commonly used when a temporary help supplier (the insured) is required by its customer (the alternate employer) to protect the alternate employer from claims brought by the insured’s employees.
Stop Gap Liability
An endorsement that provides employers liability coverage for work-related injuries arising out of incidental operations or exposures in monopolistic fund states


Umbrella Liability
A policy designed to provide protection against catastrophic losses. It generally is written over various primary liability policies, such as the business auto policy, commercial general liability policy, watercraft and aircraft liability policies, and employers liability coverage. The umbrella policy serves three purposes: it provides excess limits when the limits of underlying liability policies are exhausted by the payment of claims; it drops down and picks up where the underlying policy leaves off when the aggregate limit of the underlying policy in question is exhausted by the payment of claims; and it provides protection against some claims not covered by the underlying policies
Excess Liability
A policy issued to provide limits in excess of an underlying liability policy. The underlying liability policy can be, and often is, an umbrella liability policy. An excess liability policy is no broader than the underlying liability policy; its sole purpose is to provide additional limits of insurance


Mobile Equipment
Refers to equipment such as earthmovers, tractors, diggers, farm machinery, forklifts, etc., that, even when self-propelled, are not considered as automobiles
Builder’s Risk/Installation
Property insurance policy that is designed to cover property in the course of construction. There is no single standard builders risk form; most builders risk policies are written on inland marine (rather than commercial property) forms. Coverage is usually written on an all risk basis, and typically applies not only to property at the construction site, but also to property at off-site storage locations and in transit. Builders risk insurance can be written on either a completed value or a reporting form basis; in either case, the estimated completed value of the project is used as the limit of insurance.

Equipment Failure/Boiler & Machinery

Covered Objects – Comprehensive Including vs. Excluding Production Equipment
Coverage for loss due to mechanical or electrical breakdown of nearly any type of equipment, including photocopiers and computers. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown. Resulting business income and extra expense loss is often covered as well
Expediting Expenses
Coverage under a property or boiler and machinery policy for expenses of temporary repairs and costs incurred to speed up the permanent repair or replacement of covered property or equipment.
Hazardous Substance
Chemical or other products considered to be hazardous or sources of hazardous waste.
Consequential Loss/Perishable Goods
A loss that arises as a result of direct damage to property
Joint Loss Agreement (on property policy also)
This endorsement is intended to facilitate payment of insurance proceeds when there are two different carriers for the property and the boiler and machinery coverage and there is a disagreement as to the amount of loss to be paid by each carrier.

All lines

Broad Form Named Insured
Endorsement added to a liability policy to reduce the insurance administrative problems that large corporations encounter in acquiring new entities by covering all entities for which the insured is responsible.

Executive Protection

Fiduciary Liability
Provides general liability protection for the financial institution, its executive officers or employees, trust beneficiaries, and others as delineated in the endorsement for bodily injury or property damage liability arising out of the ownership, maintenance, or use of property in any trust for which the named insured is acting in a fiduciary or representative capacity
Kidnap and Ransom
Specialty crime coverage that insures against loss by the surrender of property as a result of a threat of harm to the named insured, an employee, or a relative or guest of the insured or the insured’s employees.
Insures against loss of money, securities, and other property surrendered away from the premises as a result of a threat to do bodily harm to the insured, an employee, a relative, or invitee who is or allegedly is being held captive.
Director and Officers Liability
Insures corporate directors and officers against claims, most often by stockholders and employees, alleging financial loss arising from mismanagement. The policies contain two coverages: the first reimburses the insured organization when it is legally obligated (typically by corporate charter or state statute) to indemnify corporate directors and officers for their acts; the second provides direct coverage to directors and officers when the organization is not legally obligated to indemnify them. In addition, a third type of coverage, known as entity securities liability insurance is usually available on an optional basis, for additional premium.
Employment Practices Liability
Liability insurance covering wrongful acts arising from the employment process. The most frequent types of claims alleged under such policies include: wrongful termination, discrimination, and sexual harassment


Foreign Liability
Liability for foreign operations arising out of a permanent branch office, manufacturing facility, construction project, or other operation located in another country
Political Risk
Insurance for companies doing business or conducting operations in foreign countries. The insurance addresses the business exposures to loss faced by these companies as a result of governmental action either foreign or domestic. Types of exposures that can be covered under political risk policies include confiscation, expropriation, deprivation, nationalization, political violence, currency inconvertibility, contract frustration, and export credit.
Credit Risk
Coverage against insolvency of a customer, which provides protection against payment default on loan, interest, or scheduled payments
Patent Infringement
Encroachment on a right granted by a government to an inventor assuring the sole right to make, use, and sell an invention for a certain period of time. Coverage for this exposure is normally not provided by liability policies.
Professional Liability
Coverage designed to protect traditional professionals (e.g., physicians) and quasi-professionals (e.g., real estate brokers) against liability incurred as a result of errors and omissions in performing professional services.
Pollution Liability
The contamination of an environment by substances regarded as pollutants. Liability from pollution is normally excluded to some degree by the general, auto, and umbrella liability policies. In recent years, insurers have attempted to introduce strict exclusionary language into these policies, making it necessary for insureds to seek coverage under separate “environmental impairment liability” policies
Aviation (Owned or Non-Owned)
Protects employees of a company or other insured personnel against the peril of aircraft accident under a master policy.
Product Recall
Insurance coverage for the cost of getting a defective product back under the control of the manufacturer or merchandiser who would be responsible for possible bodily injury or property damage from its continued use or existence.
Owners and Contractors
Covers bodily injury and property damage liability arising out of an independent contractor’s operations for another party. Although the contractor purchases the policy, the named insured is the party for whom it is performing operations
Rail Road Protective
Insurance coverage protecting a railroad from liability it incurs because of the work of contractors on or near the railroad right-of-way.
Ocean Cargo
Ocean marine insurance covering property in transit.
A provision attached to an insurance policy that restricts, excludes, or otherwise explains coverage for loss due to terrorist acts. The passage of the Terrorism Risk Insurance Act of 2002 (TRIA) voided all terrorism exclusion endorsements then in force.