Do you know basic insurance terminology? Do you fully understand common business insurance terms and definitions? It’s vital to understand common insurance terms to ensure you’re keeping your business safe and secure. Operating a business can be a complicated process, but investing in the right insurance policy to protect your business doesn’t have to be. At Marine Agency, we believe you should have all the information you need to get the best insurance for your business.
Keep reading to learn more about common insurance terms that will help you to better understand your business policy, and visit Part One of this glossary here.
Business Insurance Terms Glossary: Important Insurance Terms to Know
Hired & Non-Owned Automobile Liability
This is another two-part coverage that protects your business for any accidents that are related to vehicles that are not owned by your company. Hired autos insurance typically covers any vehicles that you rent or borrow for business purposes, like business travel. Non-owned autos insurance includes employees’ personal vehicles which may be used for work-related purposes, like a quick trip to the bank.
Employer’s Liability
This business insurance coverage is part of a workers’ compensation policy in most states except for North Dakota, Ohio, Washington, and Wyoming. Workers’ compensation coverage will pay for employee medical bills, lost wages, and even death benefits for staff members who are injured on the job or fall ill after a work-related incident. Additionally, employer’s liability coverage works to protect your business against any third-party lawsuits that are related to an employee’s work-related injury or illness. Depending on how risky each given job is within your company, the rates for workers’ compensation and employers’ liability can fluctuate greatly. Additionally, it is very common for these rates to vary from state to state.
Employment Practices Liability
Employment practices liability insurance or EPLI works to cover businesses against claims made by employees where workers believe that their legal rights as employees of the company have been violated or infringed upon. Most often EPLI claims deal with lawsuits and other protections that are part of:
- Title VII of the Civil Rights Act of 1964
- The Americans with Disabilities Act of 1990 or ADA
- The Civil Rights Act of 1991
- The Age Discrimination in Employment Act of 1967 or ADEA
- And the Family and Medical Leave Act or FMLA.
While most of these types of suits are filed against large corporations, even local small businesses are at risk and should be investing in this essential business coverage.
Cyber Liability
Now considered to be an essential coverage, cyber liability insurance protects both businesses and their clients from common internet-based risks like data breaches where both company and personal customer information may be accessed by cybercriminals.
Deductible
Most business insurance policies include a deductible. Your deductible is the amount of money that you would pay out-of-pocket before insurance funds are awarded. For example, you typically pay a deductible before a car insurance claim will be paid by your insurer. This same idea applies to many business insurance coverages.
Contact Marine Insurance Today for More Information
Have additional questions about other important insurance terms? Give us a call at 1.800.763.4775 or contact our knowledgeable agents online today for more insurance terms explained.
