Insurance can be a very confusing world. In addition to all of the different types of insurance you can get, there are all sorts of different titles and phrases that almost make up a completely different language. To make things a little more clear, here are some commonly used insurance terms, along with what they mean.
Agent: An individual or firm that represents an insurer under a contractual or employment agreement for the purpose of selling insurance.
Bodily injury: Physical harm, sickness, disease, or death resulting from any of these.
Broker:An intermediary between a customer and an insurance company. Brokers search the market for coverage appropriate to their clients and usually sell commercial, not personal, insurance.
Claim:Written or oral demands, as well as civil and administrative proceedings.
Damages: Money awarded to a plaintiff or claimant to compensate for quantifiable past and future losses, such as lost wages and/or medical costs.
Generally Accepted Accounting Principles (GAAP): A set of widely accepted accounting standards, set primarily by the Financial Accounting Standards Board (FASB), and used to standardize financial accounting and reporting in the U.S.
Liability insurance: A line of casualty insurance for amounts a policyholder is legally obligated to pay because of bodily injury or property damage caused to another person.
Limits: The maximum amount payable under an insurance policy for a covered loss.
Policy:A written contract for insurance between an insurance company and policyholder stating details of coverage.
Premium: The price of an insurance policy; typically charged annually or semiannually.
Professional liability insurance:Covers injury or economic loss to professionals for errors, negligence or omissions.
Property casualty insurance:Covers damage to or loss of policyholders’ property and legal liability for damages caused to other people or their property.
Tail:The period of time that elapses between the occurrence of the loss event and the payment in respect thereof.
If you have questions about any of these terms or any others, contact J.K. Olivieri Insurance!
J.K. Olivieri Insurance Agency, Inc. is an independent insurance agency founded in 1979 which represents a number of major insurance companies. Our mission is to protect our clients’ financial future. We feel our role as an insurance agency is to assist our clients in selecting the best possible programs to fill their specific needs. In doing so, we shall research and present our clients with the best possible programs available at the best possible prices.