Insurance Terms
Bailee: One who has temporary custody of property belonging to another. (Example: dry cleaners.)
Bailees Policy: Inland Marine insurance obtained by a bailee, to cover loss or damage to customers property in the bailee’s custody, without regard to liability.
Barratry: Illegal acts committed willfully by a ship’s master or crew for the purpose of damaging the ship or cargo. This Ocean Marine peril includes hijacking, abandonment and embezzlement.
Basic Limits of Liability: Minimum amounts of insurance. Usually the lowest amounts which can be written at the published rates or the minimum amounts an insurer is willing to underwrite.
Beneficiary: The person named in a Life or Disability policy as a recipient of a death benefit.
Bid Bonds: A type of Contract bond which guarantees the obligee that if a contractor’s bid is accepted, the contractor will provide the required Performance bond. See also Contract bond.
Bind: The agent or company representative agrees to cover the item/person etc. until the formal insurance contract is issued.
Binder: An oral or written statement providing immediate insurance protection, valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied.
Binding Authority: Authority granted by the insurance company who will ultimately assume responsibility for providing coverage. Allows an agent to act on behalf of the company for specific reasons and within prescribed guidelines.
Blanket Insurance: Insurance where a single amount of insurance applies to two or more coverage items. Contrast Specific insurance. Also a type of Employee Dishonesty coverage that covers loss caused by any employee. Contrast Name Schedule coverage and Position Schedule coverage.
Blue Sky Bond: Surety bond required of investment companies, guaranteeing against misrepresentation of securities and defrauding the public.
Boiler and Machinery Coverage Form: Insurance which covers the insured against loss (liability and physical damage) arising out of the use of steam boilers or other machinery. Part of the Commercial Package policy.
Broker: One who represents an insured in the solicitation, negotiation, or placement of insurance.
Broker of Record: A common term of "Agent of Record" is used to designate the broker who is to handle certain insurance policies for the named insured
Brokerage Business: Generally, insurance accounts handled for one agent by another agent.
Builders Risk Coverage Form: Insurance that provides coverage for buildings under construction as well as materials, equipment, supplies and temporary structures used in construction. Part of the Commercial Property portion of the Commercial Package policy.
Burglary: As it is defined in Crime insurance policies, the taking of property by a person unlawfully entering or leaving the premises, as evidenced by visiblesigns of forced entry or exit.
Burglary and Theft Coverage Form: Insurance coverage against property losses as a result of burglary, robbery, or larceny as defined by burglary.
Business Auto Coverage Form: A form which is a part of the Commercial Auto Coverage Part and is designed to cover the auto exposures of businesses, other than truckers or garages.
Business Income Insurance: A coverage which reimburses the insured for loss of earning due to an interruption in operations caused by a covered peril; available with or without extra expense. One of the Commercial Property forms available as part of the Commercial Package policy.
Business Personal Property: Furniture, fixtures (permanetly installed), equipment, machinery, merchandise, and all other personal property owned by the insured and used in the insured's business.
Businessowners Policy: A multi-peril, multi-line package policy designed to provide broad property and casualty coverages for small businesses.
Bail Bond: Surety bond that guarantees that the principal will appear in a criminal proceeding. See Court bond.
Basic Causes Loss Form: This form provides coverage for the following names perils: fire, lightning, explosion, smoke, windstorm, hail, riot, civil commotion, aircraft, vehicles, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.
Bodily Injury Liability Insurance: Protection against loss arising out of the liability imposed on the insured by law for damages due to bodily injury, sickness, or disease, including resulting death.
Broad Causes of Loss Form: This form provides coverage for Basic Causes of Loss plus 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
