Inland marine coverage on property entrusted to the insured for storage, repair, or servicing. It is typically purchased by businesses such as dry cleaners, jewelers, repairers, furriers, etc.
The minimum limits of liability as required by state or local law.
Denotes someone who is not neccesarily the insured on a property policy but has a financial interest in the property (i.e. they would benefit from any insurance on the property).
The person or persons named to receive the benefits (payout) from a life insurance policy.
A binder is a legal agreement that serves to effect insurance coverage for a specified period of time until the actual insurance policy can be issued. A binder can be issued by either an insurance agent or company and must provide the following information:
Name of insured
Type of insurance coverage
Limits of insurance
Name of insurance company
For property insurance, a blanket sets a single limit (maximum payout) for multiple buildings or risks. For health insurance, a blanket covers an entire group for a list of coverages (i.e. medical, dental, etc.).
Blanket insurance provides coverage under a single limit for the following:
Two or more items (e.g., Building and/or Contents)
Two or more locations (e.g., Location A and/or Location B)
A combination of items and/or locations
A block policy provides a form of inland marine insurance. It covers loss to the property of a merchant, wholesaler, or manufacturer including:
Property of others in the insured's care, custody, or control
Property on consignment
Property sold but not delivered
A block policy will cover loss caused by most perils (including transportation), subject to certain limitations as specified in the policy exclusions. Common block policies are jeweler's block and furrier's block policies.
Covers an empty truck returning from a dropoff (known as deadheading) when the contracting client's insurance may not be in effect.
Bodily Injury Coverage
"Bodily injury" is defined as meaning bodily harm, sickness, or disease, including required care, loss of services, and death that results.
Boiler and Machinery Coverage
This form of insurance provides mechanical breakdown coverage generally not available under any other insurance policy. A Boiler and Machinery policy can protect an insured against the effects of catastrophic property loss, such as steam boiler explosion or an expensive breakdown of machinery and equipment.
But it's not just the physical damage caused by the explosion or breakdown that's of concern. While repairs are being made, valuable time and profits are lost. Business Interruption coverage protects against this. Often Extra Expense coverage is required to keep the business in operation regardless of cost. Consequential Damage and Refrigeration Interruption insurance protect against spoilage as the result of a breakdown. Many times these business interruption, extra expense and spoilage losses can be much more extensive than the damage to the equipment itself.
Equally important is the very valuable inspection service that Boiler and Machinery insurance can provide. Not only does this service satisfy most jurisdictional inspection requirements, but it also can benefit the insured by providing sound loss control recommendations that can help assure efficient operation and longer equipment life.
Virtually every commercial business has some type of Boiler and Machinery insurance exposure. Keep in mind that mechanical breakdown coverage encompasses much more than just boilers and pressure vessels. It also can include refrigeration equipment, air conditioning equipment, various types of piping, turbines, engines, pumps, compressors, blowers, gearing, shafting, electric motors, generators, transformers and assorted other types of mechanical and electrical equipment. In fact, many policies are written for insureds who do not own or operate boilers or pressure vessels, but yet have sizable mechanical and electrical exposures.
A three part contract in which one party guarantees the performance, act or behavior of another party for a third party. The two most common types of bonds are Surety and Fidelity.
Builders' Risk Coverage
Indemnifies for loss of or damage to a building under construction. Insurance is normally written for a specified amount on the building and applies only in the course of construction. Coverage customarily includes fire and extended coverage and vandalism and malicious mischief. Builders risk coverage can be extended to a "special" form as well. The builders risk policy also may include coverage for items in transit to the construction site (up to a certain percentage of value) and items stored at the site.
Business Auto Coverage
Designed to provide a standard method of insuring vehicles other than private passenger automobiles.
Business Interruption Coverage
This form of insurance provides loss of income coverage (i.e. "disability income") for your business by replacing your operating income during the period when damage to the premises or other property prevents income from being earned.
It is by means of your operating income that your business meets its expenses of payroll, light, heat, advertising, telephone service, etc., and from which your profit is derived. If you suffer a business interruption and have to close for several months or operate at a reduced pace because of fire or other perils covered by your Earnings insurance, this income will cease or be reduced.
For the purpose of this insurance coverage, "earnings" are defined as the actual loss sustained by the insured as a direct result of business interruption necessitated by damage or destruction of real or personal property. The damage or loss must be caused by the insured perils.
Furthermore, "business income" is defined as the sum of total net profit, payroll expense, taxes, interest, rents, and all other operating expenses earned by the business.
The amount of coverage your Earnings insurance provides is established on the basis of either amount of insurance or actual loss sustained for each 30-day period of necessary business interruption caused by damage or loss from covered perils. There are several ways to set up Business Interruption depending upon your particular business. Monthly limitations, coinsurance, maximum time period to be paid, etc.
In addition to Buisness Interruption insurance, it is also advisable to carry Extra Expense insurance (see separate coverage explanation).
Business Owners Package (BOP)
A single insurance policy which provides many types of coverages such as business auto, liability and property. BOPs are created and available for small to medium sized businesses and specifically for many specialized industries.