Additional Insured – A person other than the named insured who is protected under the terms of the contract. Usually, additional insures are added by endorsement or referred to in the wording of the definition of “insured” in the policy itself.

Advertising Injury – Injury arising out of libel or slander, violation of the right to privacy, misappropriation of advertising ideas, or infringement of copyright, title or slogan committed in the course of advertising goods, products, or services.

Aggregate – Indicates the amount of coverage that the insured has under the contract for a specific period of time, usually the contract period, no matter how many separate accidents may occur.

Bodily Injury Liability – A legal liability that may arise as a result of the injury or death of anther person.

Certificate of Insurance – A form which verifies that a policy has been written and states the coverage in general, often used as proof of insurance in loan transactions and for other legal requirements.

Claims Made Coverage – A policy providing liability coverage only if a written claim is made during the policy period or any applicable extended reporting period. For example, a claim made in the current year could be charged against the current policy even if the injury or loss occurred many years in the past. If the policy has a retroactive date, an occurrence prior to that date is not covered.

Deductible – The portion of an insured loss to be borne by the insured before any recovery may be made from the insurer.

Fire Legal Liability – An insurance policy which protects the insured against liability incurred when the insured’s negligent actions result in the destruction of property which is in the insured’s care, custody or control.

General Liability Insurance – A form of insurance designated to protect owners and operators of businesses from a wide variety of liability exposures. These exposures could including liability arising out of accidents resulting from the premises or the operations of an insured, products sold by the insured, operations completed by the insured, and contractual liability.

Manifestation Clause – This insurance applies to injury or damage that first “manifests” during the policy period. It does not apply to damage that is continuously or progressively deteriorating AND first manifests prior to the effective date of the policy.

Medical Payments Insurance – A form of coverage, optional in automobile and other public liability policies, that provides for the payment of medical and similar expenses without regard for liability.

Occurrence Coverage – A policy form providing liability coverage only for injury or damage that occurs during the policy period, regardless of when the claim is actually made. For example, a claim made in the current policy year could be charged against a prior policy period, or many not be covered, if it arises from an occurrence prior to the effective date.

Owners and Contractors Protective Liability Policy – A policy which protects an insured against losses caused by the negligence of a contractor or subcontractor he hires. Also sometimes referred to as independent contractors insurance.

Personal Injury – Injury other than bodily injury arising out of false arrest or detention, malicious prosecution, wrongful entry or eviction, libel or slander, or violation of a person’s right to privacy committed other than in the course of advertising, publishing, broadcasting or telecasting.

Prior Acts Coverage – Such a policy covers claims during the policy period arising out of events that preceded the policy period.

Products and Completed Operations Insurance – A major general liability sub-line which provides coverage for an insured against claims arising out of products sold, manufactured, handled, or distributed, or operations which are complete. Claims are covered only after a product has been sold and possession relinquished, or operations have been completed or abandoned by the named insured. Manufacturers and contractors have need for this coverage.

Property Damage Liability Insurance – Protection against liability for damage to the property of another, including loss of the use of the property, as distinguished from liability for bodily injury to another. In the majority of cases it is written along with Bodily Injury Liability protection.

Subrogation Clause – A clause giving an insurer the right to pursue any course of action, in its own name or in the name of a policyholder, against a third party who is liable for a loss which has been paid by the insurer. One of its purposes is to make sure that an insured does not make any profit from his or her insurance. This clause prevents collecting from both the insurer and a third party. It is never part of a life insurance policy.

Subrogation Waiver – A waiver by the named insured giving up any right to recover against another party. Normally an insurance policy requires that subrogation (recovery) rights be preserved. In commercial property insurance, a written waiver of subrogation rights is permitted if it is executed before the loss occurs.

Sunset Clause – A policy provision that will not provide coverage unless it is reported within a specified period of time. Usually 3 to 4 years.