Small Business Guide To Commercial Insurance

32 Betterment A situation that occurs in a loss when an old piece of property is replaced by a brand new item. The insured is put in a better financial position than they were before the loss occurred, and consequentially may have to pay the difference in price for the betterment. Binder A short-term agreement that provides temporary insurance coverage until the policy can be issued or delivered. Broker A licensed individual or organization who sells and services insurance polices on your behalf. Broker-agent A licensed individual who can act as an agent representing one or more insurers, and also as a broker dealing with one or more insurers representing your interests. Cancellation The termination of an in-force insurance contract by either the insured or the insurer before its normal expiration date. Claim Notice to an insurance company that a loss has occurred that may be covered under the terms and conditions of the policy. Claim Adjuster The person who evaluates the damage caused by a covered loss and determines the amount to be paid under the policy terms.