Glossary of Business Insurance Terms

These common terms are part of the language of insurance, and you'll need some familiarity with them when shopping for the correct business insurance. This glossary will help you understand the insurance terms that G.D. Mitchell Insurance may be referring to.

Boiler and machinery insurance: This not only insures boilers and machinery, but electrical equipment as well, when they fail or break down; includes actual damage to the equipment as well as damage the failure may have caused to property.

Business interruption insurance: If you are unable to operate your business due to catastrophes and breakdowns, you are covered with this policy.

Comprehensive general liability: Covers these four types of damage: property damage (or loss), physical damage or loss due to bodily injury, advertising injury, and personal injury.

Employers' liability insurance: This compulsory policy covers employees in case of bodily injury or illness arising out of (and in the course of) employment.

Environmental/pollution insurance: A kind of liability/property insurance that covers a collection of risks due to the environment, such as asbestos.

Fidelity/bonding: Covers employers from loss due to employees' theft, infidelity, dishonesty, and/or fraudulent acts, especially in businesses where employees have access to funds on a regular basis.

Fleet insurance: This is simply business auto insurance. It covers damages, injuries, , or theft of the vehicle; it can be applied to personal as well as rental cars that are used on company business.

Indemnified: Provides coverage against specified risks outlined in your business insurance quote.

Peril: An insurance risk; for example, if a company is insured against fire, then fire is the peril.

Proximate cause: The first event in a series that results in a claim. It is not always the one that is nearest in time to the event.

Self-insurance: When a business takes on the risk of its own losses, whether in part or in whole.

Umbrella insurance: This is an additional policy that covers liabilities beyond the limits of the basic business policy as it's stated in your quote.

Workers' compensation: When an employee becomes ill or injured due to job-related circumstances, he or she is covered under worker's compensation insurance.

Knowing these terms will make getting your business insurance quote easier and more understandable. For more information, please contact G.D. Mitchell Insurance.