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.

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