In the context of Business Insurance, First-Party Coverage refers to insurance protecting a businesses’ own assets and losses. First-party coverage is a foundational component of business insurance designed to protect companies from direct financial losses affecting their property, operations, or data. Unlike liability insurance, which covers damages owed to third parties, first-party coverage focuses on … Read more
Binding Authority is the power an insurance company grants to an agent to bind coverage and issue an insurance policy without needing prior approval from the insurer’s underwriters (Binding Authority – Insurance Training Center). In insurance terms, “binding” refers to the moment an insurer becomes committed to providing coverage on a risk. Once coverage is … Read more
Overhead and Profit (O&P) refers to the additional costs included when calculating claim settlements to cover a business’s indirect expenses and provide a profit margin for contractors. Profit is the financial gain remaining after all costs, including direct project expenses and overhead, have been deducted from the revenue generated by a contractor’s services. Overhead encompasses … Read more
A date determining coverage start for claims in insurance. The retroactive date is an important component of business insurance that indicates the starting point for coverage of claims made under a policy It primarily applies to claims-made insurance policies, which provide coverage for claims only if they are made during the policy period. The retroactive … Read more
Coverage for income loss due to external disruptions. Contingent Business Interruption (CBI) insurance is a specific type of business interruption insurance that protects companies from income loss due to disruptions in their supply chain or customer base, rather than direct damage to their own property. This coverage is particularly important for businesses that rely heavily … Read more
Eliminates deductible costs in specific insurance claims. A deductible waiver is a provision in certain insurance policies that allows insured individuals or businesses to file claims without having to pay the deductible amount. This can be particularly beneficial in scenarios where the insured is facing financial burdens after a loss. Not all insurance policies include … Read more
Legal principle limiting recovery of purely economic losses. The Economic Loss Doctrine is a legal principle that prevents parties from recovering purely economic losses through tort claims. Instead, it requires that such losses must be addressed through contract law. Originating in the realm of products liability, this doctrine differentiates between tort claims for personal injury … Read more
A provision addressing uninsured property vacancy risks. A Vacancy Clause is an important provision in commercial property insurance policies that limits or excludes coverage for properties that are unoccupied for an extended period. Typically, insurance policies might stipulate that if a property remains vacant for a specified period, often around 30 consecutive days, although this … Read more
Coverage for high-risk businesses beyond standard limits. Excess and Surplus Insurance refers to specialized insurance products designed for businesses that do not fit into traditional insurance markets due to unique risks or higher loss exposures, often referred to as non-standard risks. This type of insurance caters to non-standard risks and can provide higher coverage limits … Read more
Coverage for liability from personal and advertising harm. Personal and Advertising Injury coverage is an essential component of commercial general liability insurance. It protects businesses from claims arising out of personal damage or advertising harm, which are typically not tied to physical injuries but can result in significant financial liability. Personal injury typically encompasses claims … Read more
