business auto policyA commercial auto policy that includes auto liability and auto physical damage coverages; other coverages are available by endorsement. Except for auto-related businesses and motor carrier or trucking firms, the business auto policy (BAP) addresses the needs of most commercial entities as respects auto insurance. Source: IRMI
fleetFor classifying commercial vehicles under the business auto policy (BAP), five or more automobiles. Source: IRMI
MVRA summary of a driver's convictions and accidents on file with his or her home state. If a state so chooses, it may also obtain conviction records for its citizens that are obtained in other jurisdictions. An MVR is one of the primary tools used in underwriting auto insurance. Source: IRMI
captiveA captive is created when business owners of one or more non-insurance companies come together to form a small insurance company to manage risks they face internally. When forming the company, the owners realize the underwriting profit and also acquire investment income. The risks typically managed in this type of joint insurance company include general and professional liability, auto and workers' compensation. A captive is appropriate for insurers who can have control over their claims and risk management services. Businesses that practice "best in class" procedures can expect better than average loss and have the ability to manage claims when they occur, keeping costs to a minimum by reduced and stabilized insurance expenditures.
cyber liabilityA type of insurance designed to cover consumers of technology services or products. More specifically, the policies are intended to cover a variety of both liability and property losses that may result when a business engages in various electronic activities, such as selling on the internet or collecting data within its internal electronic network. Source: IRMI
Enterprise Risk Management (ERM)A holistic approach to identifying, defining, quantifying, and treating all of the risks facing an organization, whether insurable or not. Unlike traditional risk management, ERM deals with all types of risk, such as hazard or event risk, operational risk, credit risk, and financial risk. Source: IRMI
General LiabilityA standard insurance policy issued to business organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability. Source: IRMI
Management LiabilityInsurance that covers exposures faced by directors, officers, managers and business entities that arise from governance, finance, benefits and management activities (also called "executive liability insurance"). This includes (1) directors and officers (D&O) liability insurance, (2) employment practices liability (EPL) insurance, (3) fiduciary liability insurance, and (4) "special crime" insurance (covering kidnap, ransom, and extortion exposures). Source: IRMI
Directors & OfficersA type of liability insurance covering directors and officers for claims made against them while serving on a board of directors and/or as an officer. Source: IRMI
Employment PracticesA type of liability insurance covering wrongful acts arising from the employment process. The most frequent types of claims covered under such policies include: wrongful. Source: IRMI
Fiduciary LiabilityThe responsibility on trustees, employers, fiduciaries, professional administrators and the plan itself with respect to errors and omissions (E&O) in the administration of employee benefit programs as imposed by the Employee Retirement Income Security Act (ERISA). Source: IRMI
Property insuranceFirst-party insurance that indemnifies the owner or user of property for its loss, or the loss of its income-producing ability, when the loss or damage is caused by a covered peril, such as fire or explosion. In this sense, property insurance encompasses inland marine, boiler and machinery (BM), and crime insurance, as well as what was once known as fire insurance, now simply called property insurance: insurance on buildings and their contents. Source: IRMI
surety bondsA contract under which one party (the surety) guarantees the performance of certain obligations of a second party (the principal) to a third party (the obligee). For example, most construction contractors must provide the party for which they are performing operations with a bond guaranteeing that they will complete the project by the date specified in the construction contract in accordance with all plans and specifications. Source: IRMI
Workers’ CompensationThe system by which no-fault statutory benefits prescribed in state law are provided by an employer to an employee (or the employee's family) due to a job-related injury (including death) resulting from an accident or occupational disease. Source: IRMI
experience modificationA factor developed by measuring the difference between the insured's actual past experience and the expected or actual experience of the class. This factor may be either a debit or credit and, therefore, will increase or decrease the standard premium in response to past loss experience. When applied to the manual premium, the experience modification produces a premium that is more representative of the actual loss experience of an insured. An employer with average experience has a modifier of 1.0 and would pay the manual premium. Employers with poorer loss experience would have modifiers greater than 1.00 and would pay more than manual premium. Those with good experience would have modifiers below 1.00 and pay less than manual premium. Source: IRMI
HomeownersA package insurance policy providing property and liability coverages tailored to the needs of most homeowners, condominium owners, and apartment tenants. Various versions are available depending on the type of dwelling insured and the scope of protection to be covered. It is the most commonly used insurance policy protecting homes in the United States. Source: IRMI
Condo/Co-opCovers the real property interest and the personal property of insureds who own a unit in a condominium or share an ownership interest in a cooperative building. It also provides personal liability coverage and medical payments coverage. Source: IRMI
RentersPart of the Insurance Services Office, Inc. (ISO), homeowners forms portfolio, insures a tenant for direct damage to unscheduled personal property on a broad named perils basis. This policy also provides personal liability coverage and medical payments coverage. Source: IRMI
Personal UmbrellaProvides high limits of liability to protect an insured against a catastrophic liability loss. This policy grants liability coverage that stacks on top of the primary liability coverage provided by the insured's homeowners, personal auto, watercraft and any other scheduled underlying liability policies. It covers bodily injury (BI), property damage (PD) and personal injury (PI), which includes offenses such as libel, slander, false arrest, invasion of privacy, and others. The umbrella policy also fills some gaps in coverage over a specified deductible (often called a retained limit) in the underlying policy. Source: IRMI
Excess LiabilityA policy issued to provide limits in excess of an underlying liability policy. The underlying liability policy can be, and often is, an umbrella liability policy. An excess liability policy is no broader than the underlying liability policy; its sole purpose is to provide additional limits of insurance.Source: IRMI
