Insurance Glossary C-E

Below is an Insurance Glossary of terms and definitions related to various coverages

Camera and Musical Instruments Dealers Coverage Form... Commercial Inland Marine form written to cover camers and musical instruments dealers; covers the insured's stock in trade as well as customer property in the insured's care, custody or control.

Cargo Insurance... type of Ocean Marine insurance that covers goods while they are in transit over water.

Certificate of Insurance (COI)...written form that verifies that a policy has been written. Provides a summary of the coverage provided under the policy.

Claim Adjuster... a person employed by or acting on behalf of an insurance company to evaluate and settle insurance claims. The adjuster must determine the cause of loss, wheather the loss is covered by the policy, the value of the loss, and the amount of the loss payable by the policy.

Coinsurance... policy condition that requires an insured to pay part of the loss if the amount of insurance carried on the property is less than a specified percentage of the value of the property at the time of loss.

Collision Coverage... in Auto insurance, a type of Physical Damage coverage that covers loss that occurs when the insured auto strikes another object or vehicle. May also include upset or overturn of the insured auto.

Commercial Articles Coverage Form... Filed Commercial Inland Marine form that covers photographic equipment or musical instruments used commercially.

Commercial Auto Coverage Part A... a part of the Commercial Package policy that provides Liability and Physical Damage coverage for a business's autos, including garage, trucking and motor carrier bussinesses.

Commercial Package Policy (CPP)... Package policy for businesses. Insureds can select two or more of the following coverages to include in the policy: Commercial General Liability, Commercial Property, Commercial Inland Marine, Commercial Crime, Boiler and Machinery, Farm, and Commercial Auto. Most commercial risk eligible for the CPP.

Completion Bond... type of Surety bond that guarantees that when contractors borrow money to fund construction projects, the project will be carried out and the work will be delivered free and clear liens or encumbrances.

Comprehensive Coverage... in Auto insurance, a broad Physical Damage coverage that covers all property losses except collision and those perils or property that are specifically excluded.

Concurrent Causation... a situation where two or more perils act concurrently to cause a loss. Some courts ruled that losses from concurrent causation are covered even when one of the perils that contributed to the loss is excluded under the policy.

Conditional Contract... a contract that contains a number of conditions that both parties must comply with. An insurance policy is a conditional contract.

Condominium Association Coverage Form... Commercial Property coverage form that covers the buildings in a condominium complex. Does not cover the condominium owner's personal property. Personal property is covered under a Condominium Commercial Unit-Owners Coverage Form.

Contract Bonds... catagory of Surety bonds that guarantee the fulfillment of contractual obligations. Includes Bid bonds, Labor and Material bonds, Performance bonds, Payment bonds, Supply bonds, and Completion bonds.

Contractors Equipment Floater... Nonfiled Commercial Inland Marine form that covers the heavy machinery, equipment and tools a contractor uses in business.

Contributory Negligence... Common law defense against negligence that states that if an individual contributes to his or her own loss in any way, then someone else cannot be held liable for the loss.

D

Damages... Monetary compensation awarded by a court to an injured party.

Deductible... dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss, up to the policy limits.

Defense Costs... legal expenses incurred by the insurer to defend suits brought against the insureds. Defense costs are paid in addition to payments for Bodily Injury and Property Damage claims.

Disibility Insurance... line of insurance that provides the insured against loss of income resulting from injury or sickness.

Drive Other Car... Commercial Auto endorsement that extends the definition of a covered auto to include autos the named insured does not own, hire or borrow while being used by the person named in the endorsement.

Duties Following Loss... conditions found in property casualty poicies that explains the insured's responsibilities after a loss occurs.

Dwelling Policy... policy that provides Property coverage to individuals and families. Covers dwellings, other structures, personal property, and fair rental value. Some versions also cover additional living expense.

E

Earthquake Insurance... insurance that covers damage to a structure, its contents or both as the result of an earthquake. Available as a seperate policy and as an endorsement to the Dwelling, Homeowners, and Commercial Property policies.

Electronic Data Processing Equipment Floater... Nonfiled Commercial Inland Marine policy that provides open peril coverage for computer hardware, computer software and data that is owned by the insured or in the insured's care, custody or control. Breakdown coverage, extra expense and business interruption coverage may also be included.

Employers Liability Coverage... coverage included in Workers Compensation and Employers Liability policy that covers the employer's liability at common law arising out of employees' work-related injuries and occupational diseases.

Employment Practices Liability Insurance... type of policy that covers a business's losses arising out of wrongful termination, discrimination, sexual harrassment, and other employment-related practices.

Equipment Dealers Coverage Form... Filed Commercial Inland Marine coverage form that covers mobile equipment and construction equipment dealers; covers the insured's stock in trade as well as customer property in the insured's care, custody or control.

Errors And Omissions Insurance (E&O)... Professional Liability coverage that protects the insured against liability for committing an error or omission in the performance of professional duties.

Estoppel... principle that states that if one intentionally or unintentionally creates the impression that a certain fact exists, and an innocent party relies on that impression and is injured as a result, the guilty party may be legally prohibited from asserting that the fact does nor exist.

Insurance Glossary F-J