Coverage Explanations

Property Insurance

Property Insurance covers direct physical loss or damage to buildings, contents or both.

Definitions:

Accounts Receivable means records of amounts owed to you by customers. Accounts receivable coverage pays for losses due to the destruction of these records and includes sums you can not collect as a result of the loss of accounts receivable records.
Actual Cash Value means the replacement cost of damaged or destroyed property at the time of loss, less depreciation.
Blanket Coverage provides a single amount of insurance that applies to all types of property at a single location, or to all types of property at multiple locations.
Coinsurance Clause requires that the limit of insurance equal at least a specified percentage (80% or 90%) of the property’s value. If the amount of insurance is less than the specified percentage when a loss occurs, the settlement is reduced in proportion to the difference between the actual amount of insurance and the amount required.
Deductible is the amount of loss paid by the customer before the insurance pays.
Direct Loss means actual physical damage or destruction of property
Extra Expense is expense that exceeds the amount which is ordinarily required to do business. When a property loss occurs that requires you to incur additional expenses to continue or resume normal operations, extra expense coverage will cover such expenses.
Limit of Insurance is the most the insurer will pay for loss or damage in any one occurrence.
Money & Securities means money, checks and stamps. Money & Securities coverage covers you for loss of such items due to causes of loss covered under the normal property policy.
Newly Acquired Property coverage applies to buildings or business personal property that you acquire during the policy period. It is covered up to a specific dollar amount for up to 120 days from the time of purchase.
Personal Effects of Employees are covered at the insured premises up to $1,000 per person and $10,000 per occurrence.
Property of Others is property owned by someone other than the named insured.
Property Off Premises means business personal property (contents) that is temporarily away from an insured location. Property off Premises coverage covers this property while in transit and at the temporary location
Replacement Cost provides for full replacement of property at its current cost new, without deduction for depreciation.
Sublimit is a limit, lower than the property limit, that may be assigned to particular types of property, such as outdoor signs.
Valuable Papers & Records include such items as books, maps, films, drawings, abstracts, deeds, mortgages and manuscripts and those records that exist in electronic or magnetic media while they are at an insured location. Valuable Papers and Records coverage pays the cost to research or reproduce such papers and records.

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Liability Insurance

Liability Insurance covers an insured’s liability arising out of injuries or damage suffered by members of the public, customers, tenants and others.

Definitions:

Aggregate Limit is the maximum total amount the insurer will pay for all claims during a policy period.
Bodily Injury is bodily injury, sickness or disease sustained by a person, including death resulting form any of these.
Employee Benefits Liability is liability produced by improper handling or errors or omissions in the handling of employee benefits programs. Employers can be held liable for such errors that result in an uncovered or improperly handled loss to an employee.
Fire Damage Legal Liability applies to damage to real property arising out of any one fire at premises rented by an insured.
Medical Payments covers medical costs incurred as a result of an insured’s operations, regardless of fault.
Occurrence Limit is the most the insurer will pay for any one accident or occurrence.
Personal and Advertising Injury Liability arises when another person is "injured" by oral or written material produced in the course of advertising your business, or out of the general conduct of your business in some cases where there is no bodily injury or property damage (e.g. slander and libel).
Property Damage means physical injury to tangible property, including loss of use of the property.

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Automobile Insurance

Automobile Insurance covers liability arising out of the use of covered automobiles, and can include coverage for physical damage to vehicle itself, as well as other monetary losses associated with the use of an auto.

Definitions:

Automobile Liability is liability arising from the use of a land motor vehicle.
Automobile Physical Damage is covered under two areas (1) Collision, meaning collision with another object or overturn of the vehicle and (2) Comprehensive, which covers any physical loss or damage except collision. Both coverages are written with a deductible.
Bodily Injury (BI) Liability Limit is the most an insurer will pay in any one occurrence for losses due to bodily injury to others arising out of your use of an automobile. This coverage is often written together with Property Damage (PD) liability under a combined single limit (CSL). This is referred to as a BI/PD CSL and is the most an insurer will pay in any one occurrence for both bodily injury and property damage.
Drive Other Car Coverage extends the commercial auto coverage to the nonbusiness auto exposures of named individuals that do not own a personal vehicle and do not have personal auto policies.
Hired Car Physical Damage covers comprehensive and collision claims when you rent a car for business use.
Hired & Non-Owned Auto Liability extends auto liability coverages to cover liability arising from use of rental cars in your business, or an employee’s use of his personal vehicle in your business.
Medical Payments covers other persons’medical expenses arising out of your use of a covered vehicle without regard to fault.
Personal Injury Protection
Property Damage Liability is the most an insurer will pay in any one occurrence for losses due to damage to property of others arising out of your use of an automobile. This coverage is often written together with Bodily Injury (BI) liability under a combined single limit (CSL). This is referred to as a BI/PD CSL and is the most an insurer will pay in any one occurrence for both bodily injury and property damage.
Rental Reimbursement covers the cost of renting a replacement vehicle while your vehicle is being repaired due to a covered incident.
Towing & Labor applies when a vehicle is disabled and applies only to private passenger vehicles.
Uninsured Motorists Coverage generally pays sums that an insured is legally entitled to recover from the owner or driver of an uninsured vehicle.
Underinsured Motorists Coverage generally pays sums that an insured is legally entitled to recover from the owner or driver of an underinsured vehicle.

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Equipment Coverage

Definitions:

EDP means electronic data processing equipment and includes computers, faxes and other office equipment controlled by a computer chip.
Scheduled Equipment is equipment listed or scheduled on the policy. Generally, equipment that is valued at over than $500 or some other minimum amount is scheduled.
Unscheduled Tools includes other equipment and small tools under $500 or some other minimum limit. A single limit will apply to all such tools owned by the insured, and they need not be listed individually.

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Umbrella

Umbrella policies increase the limits of underlying policies, (usually including automobile, general liability and employer’s liability) to help guard against catastrophic losses.

Definitions

Self Insured Retention is the amount an insured must pay before the umbrella policy pays in cases where there is no underlying coverage. It is similar to a deductible.
Underlying Limits are the limits of liability in the underlying general, employer’s liability and automobile liability policies. Usually, an insurer requires certain minimum underlying limits before an umbrella policy can be written.

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Worker’s Compensation

Worker’s Compensation provides statutory benefits to injured employees and can include additional coverage for employer’s liability.

Definitions:

Employer’s Liability coverage is a part of the worker’s compensation policy. It protects against common law exposures, such as a suit by an injured employee or his heirs.