There's A Lot of Lingo In the Insurance Business
Bodily injury liability refers to the unlimited liability you may incur and coverage you can secure for persons negligently injured in an accident. Coverage extends to include; medical expenses, disability, loss of income, pain & suffering and death.
Bond types include but are not limited to; license, performance, permit, fidelity, tax, BOLI, ERISA, court.
Collision coverage covers damage incurred by a vehicle that impacts or is impacted by another vehicle, a stationary object, a moving object, overturn of the vehicle and road damage. Anything not covered here is covered by comprehensive coverage. Collision typically cost significantly more than collision and deductibles at $500 or $1000 are most common today.
Commercial vehicle coverage provides an array of coverage options and limitations for autos, trucks, trailers, their drivers, and owners. While this coverage can appear to be as standard and generic as personal auto they are not. This coverage requires significant attention when determining how broad or limited you want each coverage option to be. Failure to properly review and configure coverage can leave a business owner with no coverage for legal defense or claim payout. Vehicle claims are the source of some of the largest claims due to injuries. Let us make sure you have no coverage gaps.
Comprehensive coverage covers damage to a vehicle for events ‘other than collision’. The most common of these perils are; fire, theft, wind, flood, vandalism, glass, flying objects and hitting an animal. A deductible typically applies to this coverage, with $250 or $500 being the most common. Some glass damage may be covered without a deductible.
Customized vehicles require a specific endorsement to be added to the insurance policy so that the value of this customization can be covered in a claim. This can include audio, paint, upgrades to wheels and other items that are replacements of stock equipment. Without this added these items may not have any coverage and be a complete un-reimbursed loss.
Directors & officers’ coverage protects a board of directors weather for or not for profit from a variety of claims which typically revolve around accusations of improper actions or negligence which harms the organization or persons associated with the organization.
Disability coverage replaces lost income in the event of an injury or sickness to the employer or insured party. There are many coverage options and definitions of disability available. We can help make sure you have the broadest coverage available at a proper monthly amount and length of time.
Earthquake, landslide, and flood are perils that are typically not covered by a homeowner insurance policy. These catastrophic loss items can be added at a reasonable rate and we have several options to cover your home and contents.
Emergency road service/towing coverage is available for most cars and pays for service to get you back on the road or towing the vehicle. Coverage is typically limited to a flat maximum and may have further limits as to where the vehicle may be towed. Tows to the nearest facility or one within a reasonable distance are covered while towing further may be limited. Other cost incurred may be covered with some package options like motel and travel costs if in an out of town travel or vacation situation.
Excess liability (umbrella) provides an additional layer of liability coverage typically in $1,000,000 increments. The additional coverage can stack on all other business liability coverages but does not have to. We can make sure this coverage adds to all underlying coverage types.
Full coverage is a term that is thrown around by insurance ‘professionals’ and the public. The term has no real or accurate meaning and can confuse things and cause a gap in coverage. Full coverage would lead one to believe that any and every possible thing that could happen is covered and covered fully. Unfortunately it is not that easy but fortunately, we can quickly review available coverage options so you know what you are covered for and have the most economical option.
General liability includes legal defense costs and payment of claims for the following; bodily injury, property damage, products & completed operations, personal & advertising injury. Each policy typically has a variety of additional coverage options and limitations. Every policy has a list of exclusions, let us help make sure the coverage offering fits your needs and coverage gaps are known and acceptable.
Good student discount is typically for high school and full-time college student who have a 3.0 on a 4.0 scale or equivalent. Discount amounts vary by company and gender but are typically significant.
Inland Marine coverage applies to property that is not at the business premise. This category includes but is not limited to; tools, equipment, construction materials, buildings under construction, cargo, transit. Business property coverage DOES NOT extend to property that leaves the premise. Proper configuration of this complicated coverage is ESSENTIAL if you have property that leaves your premise.
Liquor liability coverage protects establishment against claims that may include vehicle-related incidents after a customer leaves, injury due to intoxication, an assault between customers or if there is a need to eject the person. Most states require a certain amount of coverage and documentation for licensing.
Low mileage can give a discount on auto insurance cost. Amounts vary by company as does mileage but typically below 7000 miles per year. Some companies require an electronic monitoring device to verify mileage.
Medical/personal injury protection refers to no-fault coverage that can be purchased and may be required on an auto insurance policy. Coverage pays for a limited amount of medical and other expenses.
Patent infringement coverage protects you against others infringing upon your patented product or claims that your product is infringing upon theirs. These lawsuits are VERY costly and if one party cannot afford the extremely costly legal fees they will force to fold to the will of the other party. If you don’t have hundreds of thousands of dollars to defend yourself you should look into options here.
Pollution liability includes coverage for lead which has become of significant concern due to recent federal and state regulations adding risk for businesses. Coverage in this area can cover those who deal with potential pollutants as a focus of their business or those who may have incidental exposure and risk.
Product recall coverage does just that, provides coverage in the event of a costly product recall situation. If you have a product that could be subject to this peril, especially if you could be compelled to recall then you should look into this coverage.
Professional/E&O/errors & omissions protect businesses that provide a professional service or advice that may result in monetary damages from the advice or service.
Property damage liability is the liability incurred to physical property in an accident. Coverage typically pays the cost to repair or replace the items up to its actual value.
Rental car coverage pays for a rental car if you have a collision claim / accident where the vehicle is not drivable and/or during the repair process. This is typically used only when you are at fault or the other party has no coverage or the coverage has been exhausted. Daily amounts vary so make sure you have enough to get the car type you want and need. SUV’s, trucks, vans, luxury or sports cars typically require more than the base coverage amount of $20 per day. Comprehensive and collision coverage is required to add this option.
Teen drivers typically add a significant additional cost to a family’s insurance policy. It is important to make sure you explore every option to reduce cost and more importantly reduce the chances of a claim. An at-fault claim and/or violations incurred by a young driver can cause the cost to go up in multiples. Discounts are available for good students and those that have taken drivers education courses. Practice, care, and some electronic monitoring can help reinforce good driving habits and reduce the chances of an accident. See our resources under our teen section.
Uninsured & underinsured motorist covers you, your family and occupants of your vehicle in the event of an at-fault party causing bodily injury or property damage without adequate coverage in place. Your policy would pay as if it were that person’s insurance to the limit of coverage. Coverage follows named insureds to any vehicle and as a pedestrian.
Workers compensation is typically required for any business that has employees and provides coverage and protection in the event of employees’ work-related injury or sickness. This coverage is subject to a very specific and bureaucratic oversight and reporting process to which we can help navigate and minimize cost and eliminate surprises.