A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
N
Named insured
The party of parties specifically named as insured in the insurance contract.
Others may have claim on the coverage of a policy by way of internal
provisions, but any such right is by way of the agreement between the
named insured and the insurance company.
Named insured
The individual or organization named in the declaration of an insurance
policy as the insured, as opposed to someone who may have an interest
in the coverage, but is not named in the policy.
Named Perils
A formal and specific listing of perils covered in a policy providing
property insurance. A policy covering for damage by fire is said to
cover for "the named peril" of fire.
Nonowned auto
This term signifies an auto that is neither owned, hired, nor borrowed
by the insured under a commercial auto policy. Employees’ cars
used in company business are commonly classified this way. The employer’s
auto liability cover for use of nonowned autos is covered by entry
of symbol 1 ("any auto") or symbol 9 ("nonowned autos")
on the declaration page.
O
Occurrence
In general, an event that triggers coverage under any policy. Specifically,
an event that triggers coverage under an occurrence-based liability
policy. Such a policy covers injury or damage that occurs during the
policy period even if claim is brought months or even years after the
policy has expired.
Off premises cover
Commercial property policies commonly established a small coverage limit
that applies to property temporarily away from the insured’s
place of business.
Occurrence Policy
In Commercial General Liability insurance, a policy that pays for events
that occur during its policy term, regardless of when a claim is filed.
That is, an expired occurrence policy will pay a valid claim even if
the claim is made years later, provided that the event occurred while
the policy was in effect.
P
Package policy
Any combination of insuring agreements that combines property and casualty
coverages. Homeowners, business owners, and garage policies are examples.
Peril
A potential cause of loss.
Personal liability insurance
Insurance for individuals or members of a household offering protection
against claims by third parties. (outsiders) alleging bodily injury
or property damage due to negligence.
Personal lines
Insurance covering the liability and property damage exposures of private
individuals and their households. Contrast with "commercial lines."
Products and completed operations liability
The liability exposure of the manufacturer whose malfunctioning products
may cause injury or property damage or of the contractors whose failed
structures or projects may do the same. Coverage of the exposure is
a feature of the commercial general liability policy. The insurance
does not in any way constitute a guarantee of either the insured’s
product or work. Contrast with "premises and operations liability.."
Professional liability
A form of errors and omissions insurance, (sometimes called "malpractice" coverage
of errors alleged against those in the healing and legal professions).
Arbitrarily it seems, "error and omissions" is the term applied
most often to insurance covering liability for mistakes in matters affecting
property, i.e., coverage for "Insurance Agents E&O," "Architects
E&O while "professional liability" is used in reference
to coverages such as "Druggists Professional Liability," Physicians
and Surgeons Professional Liability," and "Lawyers Professional
Liability."
Proximate cause
That event which, in an unbroken sequence, results in direct physical
loss under an insurance policy. For example, wind is the proximate
cause of loss when a windstorm blows out a window that in turn topples
a lit candle that sets fire to a structure and burns it down.
Pure risk
The only consideration is the possibility of loss. Contrast with "speculative
risk."
Products-Completed Operations Hazard
Refers to bodily injury and property damage that occur somewhere other
than the insured’s premises, and involve the insured’s
products or work, subject to the limitations and parameters specified
in the Commercial General Liability coverage forms.
Property Damage
In the Commercial General Liability coverage forms, refers to physical
damage to tangible property and to loss of use tangible property, whether
or not physically damaged.