Additional Insured - A person, firm or corporation other than the named insured on a policy who is protected against loss by the terms of the policy. This coverage is typically extended though a policy endorsement, proof of which is evidenced through a Certificate of Insurance. Contrast with "Named Insured".

Advertising Injury - Injury arising out of libel or slander, violation of the right to privacy, misappropriation of advertising ideas, or infringement of copyright, title or slogan committed in the course of advertising goods, products, or services. Contrast with "Personal Injury".

Aggregate Limit - General. Usually refers to Liability Insurance and indicates the amount of coverage that the insured has under the contract for a specific period of time, usually the contract period, no matter how many separate accidents may occur.

All Risk - Insurance against loss or damage to property arising from any fortuitous cause, except such as may be specifically excluded.

Aviation Insurance - Insurance that protects an insured against losses connected with the use of aircraft. Coverages can include liability for bodily injury, property damage, passenger bodily injury, medical payments, and damage to the hull of the aircraft. Coverage can also be purchased for airport, hangarkeepers, and runway operations.

Bodily Injury Liability - The liability that may arise from injury or death of another person.

Bond - An obligation of the insurance company to protect one against financial loss caused by the acts of another.

Builders Risk Insurance - Insurance against loss to buildings or structures in the course of their construction.

Business Auto Policy - A policy which provides Liability and Physical Damage coverage on commercial vehicles. Coverage can be purchased for owned, non-owned, or leased vehicles.

Business Personal Property - Traditionally know as "contents," this term actually refers to furniture, fixtures, equipment, machinery, merchandise, materials, and all other personal property owned by the insured and used in the insured's business.

Casualty Insurance - That type of insurance that is primarily concerned with losses caused by injuries to persons and legal liability imposed upon the insured for such injury or for damage to property of others. It also includes such diverse forms as Aviation.

Certificate of Insurance - A form that verifies that a policy has been written and states the coverage in general, often used as proof of insurance in contracts.

Claims-made Coverage - A policy providing liability coverage only if written claim is made during the policy period or any applicable extended reporting period. For example, a claim made in the current year could be charged against the current policy even if the injury or loss occurred many years in the past. If the policy has a retroactive date, an occurrence prior to that date is not covered. Contrast with "Occurrence Coverage".

Completed Operations Liability Insurance - Liability coverage for bodily injury and property damage arising out of the completed operations of a business, as opposed to the product of a business. See also "Product Liability".

Commercial General Liability Policy (CGL) - A policy covering a variety of general liability exposures, including Premises and Operations, Completed Operations, Products Liability, and Owners and Contractors Protective Contractual Liability and Broad Form coverage additions.

Contractual Liability - Liability assumed under any contract or agreement. Coverage is generally limited in liability policies to specific risks, but extensions of coverage may be provided for an additional premium.

Cross Liability (Separation of Insureds) - This provision is used to ensure that suits between an insured and other named or additional insureds are covered just as though there are separate insurance policies issued to each one.

Deductible - A provision or clause in an insurance policy that the first number of dollars or percentage of expense will not be reimbursed.

Employers Liability Insurance - Coverage against a common law liability of an employer for accidents to employees, as distinguished from liability imposed by workers' compensation laws.

First Party Insurance - Insurance that applies to coverage for the insured's own property or person. Contrast with "Third Party Insurance".

Hold Harmless Agreement - A contractual arrangement whereby one party assumes the liability inherent in the situation, thereby relieving the other party of responsibility. For example, a lease of premises may provide that the lessee must "hold harmless" the lessor for any liability from accidents arising out of the premises.

Indemnify - To restore the victim of a loss, in whole or in part, by payment, repair, or replacement.

Indemnity Agreements - Contract clauses that identify who is to be responsible if liabilities arise and often transfer one party's liability for his or her wrongful acts to the other party.

Independent Contractor - One who agrees to perform according to a contract and who is not an employee.

Insurable Interest - Any interest in a subject of insurance or any legal relation to it of such a nature that a certain happening might cause monetary loss to the insured.

Insured - The party to an insurance arrangement to whom, or on behalf of whom, the insurance company agrees to indemnify for losses, provide benefits, or render service.

Liability Insurance - That insurance which pays and renders service on behalf of an insured for loss due to negligence, arising out of his responsibility, to others imposed by law or assumed by contract. See "Commercial General Liability Insurance"

Marine Insurance - A type of insurance that vessel operators purchase to protect themselves from bodily injury or property damage liabilities. Insurance can also be purchased for the vessel hull. It can also refer to insurance concerned with goods in transit.

Medical Payments Insurance - A form of coverage, usually included in automobile and other liability policies, providing for payment, without regard to liability, of medical and other similar expenses.

Named Insured - Any person, firm or corporation specifically designated by name as insured(s) in a policy as distinguished from the others who, though unnamed, are protected under some circumstances. For example, a common application of this latter principle is in auto liability policies wherein by a definition of "insured", coverage is extended to other drivers using the car with the permission of the named insured. Other parties can also be afforded protection of an insurance policy through being named an "additional insured" (see definition) though a policy endorsement.

Negligence - Failure to use that degree of care that an ordinary person of reasonable prudence would use under the given circumstances. Negligence may be constituted by acts of either omission, commission or both.

Non-ownership Automobile Liability Insurance - Protection of the policyholder against claims for bodily injury and property damage liability caused by his employees or others using autos not owned or hired by the insured in conducting his business.

Occurrence Coverage - A policy providing liability coverage only for injury or loss that occurs during the policy period, regardless of when the claim is actually made. For example, a claim made in the current policy year could be charged against a prior policy period. Contrast with Claims-Made Coverage.

Other Insurance Clause - A provision found in practically every insurance policy stating what is to be done in case any other contract of protection embraces the same property and/or hazard.

Personal Injury Coverage - Liability insurance coverage for third party claims for damages that are other than physical such as libel, slander, false arrest, wrongful eviction, invasion of privacy, etc.

Pollution Liability Coverage Form - Commercial form providing pollution insurance on a "claims-made" basis, and also including coverage for clean-up costs.

Products Liability Insurance - Provides protection against claims arising out of the use, handling or consumption of a product. (See also Completed Operations insurance.)

Professional Liability Insurance - Liability insurance to indemnify professionals, doctors, lawyers, architects, engineers, etc., for loss or expense resulting from claim on account of bodily injuries because of any malpractice, error, or mistake committed or alleged to have been committed by the insured in his profession.

Property Damage (Liability) Insurance - Protection against liability for damage to the property of another as distinguished from liability for bodily injury. In the majority of cases, it is written along with bodily injury coverage.

Property Insurance - Insurance that indemnifies a person with an interest in physical property for its loss or the loss of its income producing ability.

Retention - The net amount of risk which an insured, company, or reinsurer keeps for its own account. The insured, company, or reinsurer generally retains an amount of first loss for its own account and purchases an excess of loss cover (insurance policy) to protect itself in the event of a catastrophe.

Self-insurance - Making financial preparations to meet risks by appropriating sufficient funds in advance to meet estimated losses, including enough to cover possible losses in excess of those estimated.

Separation of Insureds (Cross Liability) - This provision is used to ensure that suits between an insured and other named or additional insureds are covered just as though there are separate insurance policies issued to each one.

Subrogation - The legal process by which an insurance company seeks from a third party who may have caused the loss, recovery of the amount paid to the insured.

Third Party Insurance - Liability always involves a third party, the one who has suffered the loss.

Umbrella Liability Policy - A liability policy designed to provide liability protection above and beyond that provided by standard liability contracts.

Waiver of Subrogation - A waiver by the named insured giving up any right of recovery against another party. For example, in a construction contract, if a contractor provides a waiver of subrogation on a workers' compensation policy, the contractor (or its insurer) would not be able to file a claim for recovery for injury to an employee occurring on the premises of the owner where the construction is taking place.

Workers Compensation - A schedule of benefits payable to an employee for injury, disability, dismemberment, or death as a result of occupational injury or illness. The payments are a liability of the employer.