The world's first credit rating agency, AM Best's analysts evaluate insurance companies on more than 50 objective quantitative metrics to determine the reputation and financial stability of the company. Credit ratings are in the format (A++ to F) and Financial Size Categories (XV to I).
Additional Insured Endorsement
Modifies the insurance policy so that the additional insured business, organization or individual is covered under the insurance policy.
An agent the insurance company has authorized to sign certificates of insurance. Not all insurance agents are authorized representatives.
Another name for car insurance. Liability is the part of your insurance that covers damage to other cars, property, and bodily injuries to other people. Liability insurance does not cover damage to your car. If you use your car for business you may need to purchase a separate commercial auto policy for the business portion of the car's use.
Get notified when insurance policies that affect your business are cancelled by requesting cancellation notification.
The intended recipient of a certificate of insurance. If you are collecting certificates this would be your business name and address. If you are issuing a certificate, this would be the name of the business receiving the certificate and their address.
An internal identifier for a certificate of insurance. Certificate numbers are not used in a consistent manner across insurance agencies, and at some companies they are not used at all. Assured Certificates uses these interchangeably with certificate request reference numbers.
A request by an insured for compensation in response to a loss or other condition the insured believes they have coverage for. The insurance company will investigate and approve the claim if the loss is covered. Keep in mind future premiums increase with each claim, and small claims may end up costing you more in the long run than paying out of pocket.
Coverage is only included for claims made during the policy period (including retroactive dates and an extended reporting period if applicable). This is generally inferior coverage to occurrence based coverage.
Combined Single Limit
In the context of Auto Insurance a combined single limit is the maximum amount the insurance will pay out for an accident, including injuries and damage to property. The combined single limit can be used to compensate one or more people for bodily injury and/or to pay for property damage.
The amount and type of protection that is available to protect from risks or liabilities. The word coverage is also used interchangeably with insurance.
Damage to Rented Premises
Typically very limited insurance that is only applicable to short rentals of space (i.e. 7 days or less) and only for very limited causes of loss such as fire. Many businesses engaged in certificate tracking do not require or check this limit. More comprehensive property insurance is often purchased if required.
This is the amount the business has to pay in the event insurance covers a claim. The deductible typically only applies to damages, and is subtracted from the amount the insurance company pays in the event of a claim. Deductibles work very similarly to and are often confused with retentions.
Each Occurrence Limit
This is how much insurance is available for any single accident, incident, or other cause of loss. It is important for this amount to be enough to cover any major loss that is typical of your industry.
An endorsement is an excerpt from an insurance policy, or other document that modifies the insurance coverage.
Excess Liability Policy
A type of policy that extends the limits of other policies it applies to in order to provide coverage when the underlying limits are exhausted or insufficient to cover a larger loss.
A cause of loss or condition under which a loss will not be covered by a given policy.
General Liability Policy (G.L.)
Also Commercial General Liability (CGL) is an insurance policy covering many common types of risk that are present in any business.
To compensate for a loss. Insurance companies indemnify businesses who purchase insurance, meaning they will pay them in the event of a covered loss.
A contract in which an insurance company agrees to compensate the insured in the event they experience a loss from a specified cause.
The party receiving protection from insurance insurance. This is a broad term that encompasses individuals, organizations, and all types of businesses including vendors, contractors and tenants. This is the party whose insurance is described on a certificate of insurance or insurance policy.
Insurer Affording Coverage
An insurance company providing protection from losses through an insurance policy. It's important to check the credit ratings of insurers using a service like AM Best to verify their financial ability and willingness to pay in the event of a claim.
Insurance Services Office, Inc. is a subsidiary of Verisk Analytics and provider of insurance services and analytics. ISO establishes industry standards and licenses insurance policy language to insurance companies which are used to create insurance policies and endorsements.
The maximum amount of insurance available for a specific situation or loss. Depending on the type of limit and terms of the policy the limit may apply only once per policy period, or to each specific incident, location, or individual.
Damage, injuries, and other negative repercussions that result from an accident, equipment failure, or other cause of loss. Insurance companies categorize losses by cause. It is important to know which causes of loss you have coverage for.
Medical Expense Limit / Medpay
The amount of medical expenses an insurance policy will pay for a no fault insurance claim. This insurance allows the policy to cover injuries without needing to establish whose fault the loss was.
Type of insurance allowing claims to be made outside the policy period in the event the loss occurred during the policy period. This offers superior coverage to claims made coverage, but also tends to be more expensive.
Personal and Advertising Injury
Losses caused by harming an individual or businesses' rights or reputation including copyright and intellectual property infringement, privacy violations, false arrest, slander and other non-physical injuries.
Primary and Noncontributory
If your business is an additional insured on someone else's policy and the coverage is primary and noncontributory, you can use their insurance in place of your own insurance in the event both policies cover a loss.
An insurance producer is an insurance agent. Insurance producers are licensed by the states they operate in to sell and negotiate various types of insurance.
The producer field on a COI refers to the brokerage or agency that issued the certificate.
Self Insured Retention: The portion of damages you pay out of pocket before your insurance will cover a loss. Businesses choose to use a retention to lower their premium. Retentions encourage businesses to resolve small losses without insurance, and require the insured party to assume some financial responsibility for damages they cause. In many cases the term deductible actually refers to a retention.
A number that appears on some certificates to indicate when a change or correction has been made to a prior version of the certificate. This typically happens when a mistake is made on a certificate, or the certificate holder requests additional endorsements, wording or coverages.
An alternative to a Combined Single Limit for Auto Liability, split limits consist of: Bodily Injury Per Person, Bodily Injury Per Accident, and Property Damage Per Accident.