GLOSSARY OF TERMS

B TERMS

Backdating: Making the effective date of a policy earlier than the date

of application. Backdating is often used to make the age of the

applicant lower than it actually was at the time of application so that

he/she can get a lower premium. State laws often set limits to this.

Bailee Coverage: Coverage on property left in the care of the insured

for storage, repair or servicing

Basic Cause of Loss Form: Property coverage for named perils: Fire,

Lightening, Explosion, Smoke, Windstorm, Hail, Riot, Civil Commotion,

Aircraft, Vehicles, Vandalism, Sprinkler Leakage, Sinkhold Collapse and

Volcanic Action  

Basic Limits: The minimum limits of liability that can be carried by an

insured

Beneficiary: The designated person set to receive the death benefit if

the insured should die.

Best's Rating: A rating system by A.M. Best Company giving the

financial condition of insurance companies 

Binder: A temporary insurance policy that expires at the end of a

specific time period or when a permanent policy is written. A binder is

given to an applicant for insurance during the time it takes the an

insurance company to complete the policy paperwork.

Bodily Injury by Accident Limit: The most an insurer will pay under Part

Two of a Workers' Compensation Policy for claims arising out of any

one accident, regardless of how many employee claims arise out of the

accident

Bodily Injury by Disease, Each Employee : The most an insurer will pay

under Part Two of a Workers' Compensation Policy for damages due to

bodily injury by disease to any one employee

Bodily Injury by Disease-Policy Limit : The most an insurer will pay

under Part Two of a Workers' Compensation Policy employee bodily

injury by disease claims during the policy period regardless of the

number of employees who make such claims

Bodily Injury Liability Limit: The insured is legally liable for damages

due to bodily injury, sickness, or disease, including resulting death

Boiler & Machinery Insurance: Coverage for loss caused by mechanical

or electrical equipment breakdown, including damage to the equipment

Bond: A written agreement in which one party, the surety, guarantees

the performance or honesty of a second party, the principal (obligor),

to the third party (obligee) to whom the performance or debt is owed

Brands and Labels Endorsement: Property insurance coverage that

allows the insured to remove labels from damaged goods or mark the

items as 'salvage,' provided the goods are not damaged in the process

Broad Causes of Loss Form: Property coverage for the named perils:

Fire, Lightening, Explosion, Smoke, Windstorm, Hail, Riot, Civil

Commotion, Aircraft, Vehicles, Vandalism, Sprinkler Leakage, Sinkhole

Collapse, Volcanic Action, Breakage of Building Glass, Falling Objects,

Weight of Snow, Ice or Sleet, Water Damage (in the form of leakage

from appliances) and Collapse from Specified Causes

Building Ordinance Coverage: Covers against loss caused by

enforcement or ordinances or laws regulating construction and repair

of damaged buildings

Burglary: Theft of property by forcible entry, which is evidenced by

visible signs, in a premises, by a person

Business Auto Policy: Auto Policy for businesses that includes auto

liability and auto physical damage coverages

Business Income Coverage: Insurance covering loss of income by a

business when operations are interrupted due to property loss that is a

covered cause of loss

Business Interruption Coverage: See Business Income Coverage

Business Owners Policy (BOP): A policy that combines property and

liability coverages for special types of small businesses