GLOSSARY OF INSURANCE TERMSThere are 528 entries in this glossary.
The portion of premium that applies to the expired part of the policy period. Insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires.
Covers a building and its contents, but includes a large percentage deductible on each. A special policy or endorsement exists because earthquakes are not covered by standard homeowners or most business policies.
Total financial loss resulting from the death or disability of a wage earner, or from the destruction of property. Includes the loss of earnings, medical expenses, funeral expenses, the cost of restoring or replacing property and legal expenses. It does not include noneconomic losses, such as pain caused by an injury.
|ELECTRONIC COMMERCE / E-COMMERCE||
The sale of products such as insurance over the Internet.
A kind of deductible or waiting period usually found in disability policies. It is counted in days from the beginning of the illness or injury.
Benefits offered employees at their place of work covering medical expenses, disability, retirement and death. These benefits are usually insurance coverages and are paid in whole or in part by the employer.
|EMPLOYEE DISHONESTY COVERAGE||
Covers direct losses and damage to businesses resulting from the dishonest acts of employees. (See Fidelity bond)
|EMPLOYEE RETIREMENT INCOME SECURITY ACT||
Federal legislation that protects employees by establishing minimum standards for private pension and welfare plans.
Part B of the workers compensation policy that provides coverage for lawsuits filed by injured employees who, under certain circumstances, can sue under common law. (See Exclusive remedy)
|EMPLOYMENT PRACTICES LIABILITY COVERAGE||
Liability insurance for employers that covers wrongful termination, discrimination and other violations of employees’ legal rights.
A written form attached to an insurance policy that alters the policy’s coverage, terms, or conditions. Sometimes called a rider.
A form of life insurance that pays face amount in the event that the insured dies within a specific time period, or the same amount as an endowment if the insured is alive on that date at the end of the specified term.
|ENVIRONMENTAL IMPAIRMENT LIABILITY COVER||
A form of insurance designed to cover losses and liabilities arising from damage to property caused by pollution.
In investments, the ownership interest of shareholders. In a corporation, stocks as opposed to bonds.
|ERRORS AND OMISSIONS COVERAGE / E&O||
A professional liability policy covering the policyholder for negligent acts and omissions that may harm his or her clients.