Small Business Guide To Commercial Insurance

33 Claims Made A liability insurance policy where coverage applies to claims filed during the policy period no matter when the loss occurred subject to a retroactive inception date. Coinsurance An insurance clause that defines the amount of each loss that the company pays according to the amount of insurance carried, divided by the amount of insurance required. This basic formula relates to a contracted percentage of coverage that must be required to prevent a coinsurance penalty. Combined Single Limit When bodily injury liability and property damage liability is expressed as a single sum (limit) of coverage. Commercial Lines Insurance coverages for businesses, commercial institutions, and professional organizations, as contrasted with personal insurance. Commission A portion of the policy premium that is paid to an agent by the insurance company as compensation for the agent’s work. Concurrent Causation Occurs when two or more perils cause a loss. When only one of these perils is covered by the insurance policy, the court generally rules that the entire loss is covered. Many insurance companies have reworded their policies to clarify that only a loss attributed to a covered peril is indeed covered. Conditions The portion of an insurance contract that sets forth the rights and duties of the insured and the insurer.