There are several terms insurance that can be confusing. Here are some common terms that are used in policies or when speaking to your firm’s insurance company or agent.
Insuring agreement is the portion of the insurance policy in which the insurer promises to make payment to on or behalf of your firm.
Additional insured is language that is requested from a third party. This is commonly included as blanket language in the general liability policy. Additional insured cannot be applied to professional liability.
Declarations page(s) are the first few pages of a policy that lists the business name, coverages and limits for the policy.
Claims made insurance means the insurer covers only those claims which were made against you and reported to the company during the policy period.
A retroactive date is included in a claims made policy. It protects your business from claims that are reported on or after a specific date. If the policy is full prior acts, it will cover from the beginning of your firm’s inception.
Extended reporting period for professional liability is an extended time period that your firm can report a claim after your firm has closed.
Subrogation allows an insurance company the right to pursue a third party if they caused a loss to your firm. Your firms’ policies may include a waiver of this subrogation, check each policy to verify.
Loss runs are your firm’s claims history report.
Deductible is the amount that your firm is responsible for paying in the event of a loss. The amount and type of deductible will vary with each policy.
Umbrella or excess insurance is an additional policy that extends over your general, automobile and workers compensation policies. It provides additional coverage limits. This does not apply to the professional liability policy.
If your firm has questions about insurance terms in commercial policies for architects/engineers please call, or email, your Professional Underwriter agent for assistance.