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Bailee
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One who has custody of the property of another, Bailees "for hire" have certain responsibilities to care for the property of other that is in their custody.
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Bailor
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A person entrusting foods to another.
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Basic Limits
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Certain minimum amounts of liability in liability insurance (determined by custom or laws), for which "basic" premiums apply. Additional amounts of liability insurance are charged for by the addition of certain percentages of the premium charged for the minimum limits.
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Bid Bond
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A bond intended to guarantee that the bidder on a construction, supply or service contract will enter into the contract if successful as a bidder. Should the bidder fail to enter the contract, the surety on the bid bond may be called upon to pay the difference between the amount of the principl's bid and the bid of the next lowest qualified bidder.
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Binding Authority
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When one party (usually an agent), has been given the right and commensurate authority to represent another party (usually an insurer), in effecting or creating an insurance contract.
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Blanket Coverage
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A single limit of insurance that covers a number of items, such as one amount of insurance to cover two buildings or a single building and its contents. A blanket policy usually contains certain restrictions, which may be absent in "specific" or "itemized" policies, such as the use of a 90% coinsurance clause.
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Blanket Crime Policy
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A blanket crime policy (now obsolete) insuring against employee dishonesty, losses inside and outside the premises, losses from money orders and counterfeit paper currency, and depositor's forgery. The policy covers money, securities and other property with a single limit of insurance applying to all coverages, one of which may be eliminated. Similar to 3-D policy (comprehensive dishonesty, and destruction) wherein the same coverages are afforded, but on an optional basis.
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Blanket Rate
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A fire insurance rate which applies to blanket insurance.
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Blood Bank Professional Liability Insurance
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Coverage designed for owners and operators of blood banks against negligence, errors, or omissions arising out of alleged malpractice, rendering or failing to render professional services, or mistake in taking, handling, processing, storing, or distributing blood products.
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Bobtail Coverage
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Sometimes called "deadheading," this is an auto coverage for the liability exposure of a trucking operation, which covers tractor-trailer rigs returning empty from a trip and, therefore, not protected by the policy of the client contracting with the trucker.
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Bodily Injury (BI)
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Injury, sickness, or disease sustained by a person, including death at any time resulting therefrom.
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Bodily Injury Liability Insurance
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A form of "third-party" protection covering the insured's legal liability for bodily injury to others caused by the insured's negligence.
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Boiler & Machinery Insurance
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Protection against loss from disruption of boilers and machinery by an insured peril: loss to the boiler and machinery itself, damage to other property, business interruption losses, or all three. Also known as machinery breakdown insurance.
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Bond
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There is more than one type of bond. Insurance bonds are normally three-party contracts in which one party agrees to guarantee the act, performance, or behavior of a second party, to a third party. Two common types of bonds are fidelity and surety.
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Breach of Warranty
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Warranties are statements of commitments by the insured on the literal truth of which the insurance contract depends. Warranties may relate to matters existing at or before the time the policy is issued or may be undertakings by the insured that something be done or omitted after the policy takes effect and during its continuance. Breach of warranty exists when a warranty is broken or violated by an insured.
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Brick Building
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A type of construction in which the outer walls are at least the thickness of two bricks in width.
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Brick Veneer
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A building where the outer walls are made of wood faced with a single course of brick. In other words, it is a frame building with a brick outside covering, as distinguished from a brick building in which the supporting walls are brick.
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Bridge Policy
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Special inland marine forms which insure bridges against many hazards.
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Broker
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A licensed, legal representative of the insured who negotiates with underwriters on behalf of the insured; nevertheless, the broker receives a commission from the insurer (underwriter).
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Broker of Record
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A licensed broker who has been designated by the policyholder to represent that policyholder.
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Buffer Layer
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An amount of insurance purchased to satisfy the requirement of an excess carrier with respect to underlying insurance. Also known as gap coverage.
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Builders Risk
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1) A building or a ship in the course of construction.
2) A special form dealing with the unique loss exposure of property under construction.
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Bumpershoot
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An umbrella or excess liability policy specifically for ocean marine risks.
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Burglary
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Theft by forcible and illegal entry, evidenced by visible signs made by tools, explosives, electricity, or chemicals.
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Business Income Insurance
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A time element coverage which pays for loss of earnings or income when business operations are interrupted, curtailed or suspended due to property loss as a result of an insured cause of loss. Also covered are loss of rents and rental value. Extra expenses incurred to continue operations at another location are included as long as they reduce the total amount of loss.
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Business Interruption Insurance
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A time element coverage which pays for loss of earnings when business operations are curtailed or suspended due to property loss as a result of an insured cause of loss. This coverage is now obsolete and has been replaced by a more comprehensive and generic business income insurance.
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By Order of Civil Authority
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A directive from city officials or other civil authority confirming that a building may be destroyed by the fire department in order to prevent the spread of conflagration.
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Services