Binder - A temporary or preliminary agreement which provides coverage until a policy can be written or delivered.

Builders Risk - covers structures being built, temporary structures at the building site, and building materials that have not yet become part of the building while on the insured location, in transit, or in storage at another location.

Business Income Coverage - the net profit or loss that would have been earned or incurred if the suspension of the business had not occurred, plus any normal operating expenses that must continue during the suspension of the business.

Certificate of Insurance - a statement issued to individuals insured under a group policy, setting forth the essential provisions relating to their coverage.

COBRA - Consolidated Omnibus Budget Reconciliation Act of 1985.

Coinsurance - In property insurance, a clause requiring policyholder to carry insurance equal to a specified percentage of the value of the property in order to receive full payment of a loss. In health insurance, coinsurance is a percentage of each claim, above the deductible, that is paid by the policyholder.

Collision Insurance - Insurance coverage which pays for damage to the policyholder's car caused by collision.

Comprehensive Insurance - Coverage in automobile insurance providing protection in the event of physical damage (other than collision) or theft of the insured car.

Declaration Page - The page of the insurance policy which lists the insurance company, its address, name of the policyholder, starting and ending dates of coverage, and the actual coverages given in the contract, including the covered locations and amounts.

Deductible - The amount of the loss which the insured is responsible to pay before benefits from the insurance company are payable. You may choose a higher deductible to lower your premium.

Disability - a physical or mental impairment that substantially limits one or more major life activities of an individual.

Electronic & Data Processing Coverage - covers damage to data processing hardware, software, and media. The policy also covers the extra expense to continue data processing operations following a covered loss that resulted in damage to the system.

Endorsement - Amendment to the policy used to add or delete coverage. EXPERIENCE - The record of claims made or paid within a specified time period.

Experience Rating - Determination of the premium rate for an individual risk, made partially or wholly on the basis of that risk's own past claim experience.

General Liability Coverage (SEE LIABILITY BELOW)

Hired Auto Liability Coverage - is provided only for autos leased, hired, rented or borrowed for use in the named insured's business.

Liability Insurance - Insurance for money the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person and covered in the policy.

Indemnity - repayment for loss, damage, etc

Insurance Carrier - any corporation primarily engaged in the business of furnishing insurance protections to the public.

Marine Insurance - Coverage for goods in transit, and for the vehicles that transport them, over waterways, over land and in air.

Medical and Disability - Insurance - protection which provides payment of benefits for covered sickness or injury.

Obligee - somebody to whom another person is legally or morally bound, for example by a financial debt or obligation to do something.

Peril - The cause of a possible loss. For example, fire, theft, or hail.

Physical Damage Coverage - Property damage coverage for a vehicle under the "collision insurance" and "comprehensive insurance" sections of the policy.

Policy - The written contract of insurance.

Portfolio - a complete range of products designed to cover all the assets held by an individual or organization.

Premium - The amount of money an insurance company charges for insurance coverage.

Replacement Cost - The cost to repair or replace an insured item. Some insurance only pays the actual cash or market value of the item at the time of the loss, not what it would cost to fix or replace it. If you have personal property replacement cost coverage, your insurance will pay the full cost to repair an item or buy a new one once the repairs or purchases have been made.

Reinstatement - The restoring of a cancelled policy to full force and effect. The reinstatement may be effective after the cancellation date, creating a lapse of coverage. Some companies require evidence of insurability and payment of past due premiums plus interest.

Surety - An arrangement whereby one party becomes answerable to a third party for the acts of a second party. Customarily an insurance company, the party in a suretyship arrangement who holds himself responsible to one person for the acts of another.

Term Life - a plan of insurance which covers the insured for only a certain period of time, and not necessarily for his/her entire life. The policy pays a death benefit only if the insured dies during the term.

Umbrella Liability Insurance - A liability policy that covers in excess of primary limits of the basic liability policy.

Underwriting - The process of selecting applicants for insurance and classifying them according to their degrees of insurability so that the appropriate premium rates may be charged. The process includes rejection of unacceptable risks.

Whole Life - a basic type of permanent life insurance which can provide lifetime protection at a level premium; generally builds a cash value.

Worker's Compensation - Pays for medical care and physical rehabilitation of injured workers and replaces their lost wages while they're unable to work.