The policy providing initial coverage for a claim until its limit of liability is reached and an umbrella or excess policy’s coverage is triggered.

The amount you are required to pay out of the total cost of a claim against your policy above which the insurance company will pay to the limits of that section of your policy.

This clause reduces the “completed operations” from 10 years to either 2 or 5 and sometimes 3 years of coverage. It reduces the risk to the insurance company and therefore saves the insured money.

A limit in an insurance policy stipulating the most it will pay for all covered losses sustained during a specified period of time, usually one year.

The anniversary of the original date of issue of a policy as shown in the declarations.

Liability assumed under contract or agreement. More commonly known as contractual liability.

Covered perils in a property insurance contract: fire, lightning, windstorm, civil commotion, smoke, hail, aircraft, vehicles, explosion and riot.

A shorthand expression for “bodily injury.”

A binder is a legal agreement that serves to effect insurance coverage for a specified period of time until the actual insurance policy can be issued. A binder can be issued by either an insurance age [..]

The authority extended to an agent by an insurer to provide insurance, usually on a temporary basis, until a policy can be written.