Basic Coverage Form: Any of the commercial or personal insurance property forms which
provide basic coverages. These forms generally provide the most limited coverage, which is
surpassed by "Broad Forms" and "Special Forms."
Basic Rate: The manual rate, from which are taken discounts or to which are added
charges to compensate for the individual circumstances of the risk.
Beneficiary: An individual that is entitled by an insurance policy to receive a benefit. For
life insurance, an individual that is entitled by an insurance policy to receive the insurance
proceeds upon the death of the insured.
Binder (or Binding Receipt): Formal notification from an agent that the insurance policy
has been paid for and is in full force. This Binder protects the policyholder for a specified
period of time until the actual insurance policy has been issued. In lines other than life and
health, a binder is an acknowledgement (usually from the agent) that insurance applied for
is in force whether or not premium settlement has yet been made or the policy issued. In
life and health insurance, binders are not issued, but if premium settlement is made with
the application, what is often erroneously referred to as a "binder" is issued. Actually this is
a conditional binding receipt.
Blanket Insurance: Covers the common areas of a condo, co-op or an area governed by a
homeowner's association. Blanket insurance does not cover properties or the content of
properties. It covers areas owned in common. (1) Property-liability insurance that covers
more than one type of property in one location in one policy or form instead of under
separate items, or one or more types of property at more than one location; (2) A contract
of health insurance that covers all of a class of persons not individually identified.
Bodily Injury Liability: Insurance coverage that protects the insured against financial loss
when a person is held liable (legally) for injuring other individuals in an auto accident. Bodily
Injury Liability also protects the insured against the cost of legal defense. The liability
which may arise from injury or death of another person.
Bodily Injury / Property Damage: Also referred to as BI/PD. This insurance covers injuries
to people in an accident as well as damage to property associated with it. You may see
25/50/10 coverage, which means $25,000 per person per accident for bodily injury/$50,000
total per accident for bodily injury/$10,000 in property damage per accident.
Boiler and Machinery Policy: Insurance against loss due to accidents to boilers, pressure
vessels or other machinery including the equipment itself, as well as liability arising out of
Bond: An obligation of the insurance company to protect one against financial loss caused
by acts of another.
Builder’s Risk Coverage Form: A commercial property coverage form specifically designed
for buildings in the course of construction.
Builder’s Risk Insurance: Insurance against loss to buildings or structures in the course of
Buildings and Personal Property Coverage Form: A commercial property coverage form
designed to insure most types of commercial property (buildings or contents or both). It is
the most frequently used commercial property form, and has replaced the General Property
Form, Special Building Form, Special Personal Property Form, and others.
Business Auto Coverage Form: The latest commercial Automobile Insurance coverage
form, which may be written as a monoline policy or as part of a commercial package. This
form has largely replaced the Business Auto Policy.
Business Income Coverage Form: A commercial property form providing coverage for
"indirect losses" resulting from property damage, such as loss of business income and extra
expenses incurred. It has replaced earlier Business Interruption and Extra Expense forms.
Business Interruption Insurance: A type of policy that pays for loss of earnings when
operations are curtailed or suspended because of property loss.
Business Liability: The term used to describe the liability coverages provided by the
Business Owners Liability Coverage Form. It includes liability for bodily injury, property
damage, personal injury, advertising injury, and fire damage.
Business Personal Property: Traditionally known as "contents," this term actually refers to
furniture, fixtures, equipment, machinery, merchandise, materials, and all other personal
property owned by the insured and used in the insured's business.
The above information is for general informational purposes only and is not to be
construed as a recommendation or advice in any way shape or form.
|Copyright © 2016 Stephen W. Gersh Insurance Agency, Inc. All rights reserved.