Insurance Lingo

blog imageConfused by insurance lingo? We’ll walk you through it.

Aggregate: The maximum amount an insurance company will pay for all covered losses sustained during a specified period of time, usually one year.

Shared Member Aggregate: Shared aggregate plans only have a total number of dollars for each calendar year, shared among everyone who purchased that insurance plan. If other members file claims and use up the aggregate funds, the money may not be available to you when you need it. AHP is not a shared aggregate plan. Our aggregates are per member, per year. This means with AHP, your claim is dealt with individually and the amount of money you are insured for is yours alone.

Certificate of Insurance (COI): A certificate issued by the insurance company to verify your insurance coverage. COIs typically include the policy terms, the specific type of insurance, and the coverage limits. They can be used to provide proof of insurance to a landlord or employer.

Claims-Made Coverage: This is a type of liability insurance in which the coverage only applies during the period of time while you are insured. In other words, coverage does not continue after the policy lapses, if a claim is filed at a later date for an incident that occurred while you were still insured. Compare Occurrence Form Coverage.

General Liability Insurance: General liability insurance provides you with protection should a client name you in a lawsuit as a result of an accident on your business premises that you are responsible for maintaining (for example, a client slips and falls).

Occurrence Form Coverage: This is a type of liability insurance in which coverage continues even after the policy lapses, if a claim is filed at a later date for an incident that occurred while you were still insured. Compare Claims-Made Coverage.

Professional Liability: Professional liability insurance provides you with protection should a client name you in a lawsuit as a result of an accident they feel resulted from your negligence (for example, accidentally cutting a client’s ear).

Product Liability: Product liability insurance provides you with protection should a client name you in a lawsuit as a result of an accident in which they had an interaction with a product you used on them or sold to them (for example, an allergic reaction to hair color or shampoo).