Some business insurance terminology

When reviewing your business’s insurance plan, you may come across some terms that are not all that common to you. With everything listed on those few pages of your policy, it is completely understandable that not every word will make total sense upon your first glance. Here are some of the terms that you might see on your insurance policy and their meanings according to the Dearborn Property and Casualty Insurance License Exam Manual. This manual is used by many insurance agents to study for the exam required to obtain an insurance producer’s license:

• Blanket insurance- a property or liability policy extending to more than one location, class of property or employee without specifically naming the location, class or employee.
• Fortuitous event- an unintended accident.
• Insurable interest- the interest from which monetary loss will result if the peril insured against occurs.
• Indemnify- the restore in whole or in part by payment, repair or replacement the situation of one who has suffered a loss.
• Jettison- the act of throwing a ship’s cargo overboard in order to prevent further damage or sinking.
• Fiduciary Duty- the responsibility (usual financial) that someone owes to another because of funds or other items held in trust.

Of course, these are just a few of the terms you might see on your policy. There may be more that are a bit foreign to you. If your policy seems confusing to you in any way, please don’t hesitate to call us for clarification. Our agents are fully licensed and well versed in all of the insurance terms that you may not know.

We want you to have the best policy to fit your business needs. If there are terms in it that don’t fit or need to be amended, we want to fix them so that you have the coverage your business.