Insurance for Business

Risk

Probability, amount or type of possible loss incurred and covered by an insurer.

Peril

Anything which may cause possible loss.

Hazard

Anything which increases the likelihood of loss through some peril.

Negligence

Failure to take ordinary or reasonable care to prevent accidents from happening.

Pure Risk

Risk in which there is only a chance of loss and no chance of gain.

Speculative Risk

Risk which carries a chance of either loss or gain.

Risk Analysis

Process by which you consider all possible risks and determine which are the most significant for a particular business.

Risk Avoidance

Refusal to engage in a particularly hazardous activity.

Risk Reduction

Steps taken to prevent a risk from occurring.

Risk Retention

When a business cannot prevent or transfer a certain type of risk and retains or assumes the financial consequences of a loss.

Risk Transfer

Transfer of risk to another individual or entity, typically an insurance company.

Business Insurance

Wide variety of insurance coverage which can reduce, mitigate or compensate for exposure to risk for the business or its employees.

Insurance Coverage

Amount or type of protection provided by an insurance policy for the business a policy covers.

Property Insurance

Covers loss of or damage to buildings, equipment, machinery, merchandise, furniture and fixtures.

Liability Insurance

Protects against damages for which the insured may be held legally responsible.

Health & Medical Insurance

Form of protection which eases the financial burden people may experience as a result of illness or injury.

COBRA

Consolidated Omnibus Budget Reconciliation Act; allows individuals to keep a former employer’s group coverage for a set period.

Director & Officer Insurance

Protects leadership of a business from claims filed against them for actions taken while leading the organization.

Vehicle Insurance

Provides financial protection for vehicles and drivers.

Disability Insurance

Financial protection which continues to pay a portion of a worker’s pay when they have sustained a work-related injury.

Unemployment Insurance

Program in which funds paid by employers are accumulated for payments to workers during periods of unemployment.

Business Owner’s Policy

Insurance package which combines coverage for many risks.

Specialized Insurance

Insurance coverage for special aspects only associated with particular business types.

Bid/Quote

Estimate of the cost of insurance needed.

Premium

Charge for coverage, typically stated in monthly, quarterly or annual terms.

Deductible

Amount the insured is required to contribute before the insurer pays the rest.

Insurance Claim

Formal request to an insurance company asking for payment based on the terms of the policy.

Insurance Adjuster

Insurance company employee who investigates claims and evaluates responsibility for payment.

Insurance Fraud

White-collar crime occurring when someone intentionally deceives another about an insurance matter.