Glossary
Insurance terms, in plain English
Insurance shouldn't require a decoder ring. Here are the words you'll see most often on quotes, policies, and certificates — explained without the jargon.
A
- Additional Insured
- A person or business added to your policy who gains certain protections under it — frequently required in commercial contracts.
B
- Bobtail Insurance
- Liability coverage for a truck when it is driven without a trailer or not under dispatch — common for owner-operators.
- Builders Risk
- Property coverage for buildings and materials during the course of construction or renovation.
C
- Certificate of Insurance (COI)
- A document that proves you carry insurance, listing your coverages and limits. Often required by clients, landlords, and general contractors.
D
- Deductible
- The amount you pay out of pocket on a covered claim before your insurance begins to pay.
E
- Experience Modifier (Mod)
- A factor used in workers' comp pricing that compares your claims history to similar businesses; a lower mod means lower premium.
L
- Liability Coverage
- Coverage that pays for bodily injury or property damage you are legally responsible for causing to others.
P
U
- Umbrella Policy
- Coverage that provides additional liability limits above your underlying auto, home, or commercial policies.
Still have questions about a term or how it applies to you? Browse our frequently asked questions or contact a licensed advisor.
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