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Insurance Glossary B

Triangle

 

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

 

Basic named perils

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

 
Binder

An insurer’s agreement, by way of an agent, to provide non-life insurance on the spot, pending issuance of the policy contract.  

 
Blanket coverage

A means of insuring various items of property under one limit of liability.  

 
Blanket insurance

Insurance covering multiple items of property as a group. Covered property may be at one location or several. 

 
Bodily injury

A term that refers to physical injury, sickness, or disease, or death resulting therefrom. In some jurisdictions "bodily injury: includes emotional injury. 

 
Bodily injury liability

Legal obligation that flows from the injury or death of another person. This insurance is commonly limited to bodily injury liability derived by the way of negligence, but coverage of liability by way of contract (holding another harmless) is also possible. 

 
Boiler & machinery insurance

Fired vessels, steam generators, mechanical and or electrical objects and turbines, are all examples of "objects" that might be listed for coverage under a boiler and machinery policy. Coverage is for damage to covered property caused by an accident to an object identified in the policy’s schedule. Coverage includes extra expense, automatic 90-day coverage at new locations, defense against liability claims, and supplementary payments like those provided under public liability policies. 

 
Bond

A document for expressing surety. A bond engages three entities; the "surety" (bonding company) sells the bond to the "principal" for the purpose of paying off the party the principal will owe to the "obligee" upon failure of the "principal" to perform some act or provide some service under agreed terms.  

 
Bond, surety

A surety bond is the financial assumption of responsibility by one or more persons for fulfilling another’s obligations. 

 
Broad form perils

A property insurance designation for coverage that extends beyond the basic named perils. 

 
Broker

One who acts as the insured’s agent in arranging insurance. A broker may also serve an the agent of an insurance company. 

 
Builders risk insurance

A variation of property coverage specifically applicable to construction projects. It is commonly written in an amount to cover the value of the structure when completed. The premium charged takes into account that values at risk increase gradually over the term of the policy. 

 
Business Auto Policy (BAP)

A standardized contract for writing liability and property coverage on commercial autos.  

 
Business income coverage

Insurance protecting the income derived from an insured’s business activities when curtailed peril. Coverage includes reasonable extra the insured undertakes to expedite return to business operations. 

 
Business personal property

A tern relating to "contents" of a commercial enterprise, it may include furniture, fixtures, machinery and equipment as well as stock, all other chattels owned by the insured, and even use interest in building improvements and betterments.  

 
Business Owners Policy (BOP)

A package of property and liability insurance for small and medium size businesses, the BOP owes its origin to the success of the homeowners policy. 

 

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