Bonding: a guarantee of
performance required, either by law or consumer demand, for many
businesses, most typically general contractors, temporary personnel
agencies, janitorial companies and businesses with government
contracts
Broker: an insurance agent
who represents many different insurance companies
Business interruption
insurance: pays for the cost of repairing or rebuilding
business as well as income lost while business is out of
commission
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Direct writer: an insurance
agent who represents one insurance company; see also Broker
Disability insurance: pays a
fixed percentage of average earnings should the insured be unable
to continue working due to disability
Employment practices liability
coverage: an optional part of workers' compensation
coverage, this protects the corporation from being sued for acts of
individual employees (such as in a sexual harassment case)
Errors and omissions liability
coverage: protects professionals, such as consultants or
accountants, from damages resulting from an error or omission in
their work
General liability coverage:
insures the business against accidents and injuries that happen on
its premises, as well as exposure to risk related to its
products
General liability coverage:
insures the business against accidents and injuries that happen on
its premises, as well as exposure to risk related to its
products
Key person insurance: life
insurance policy taken out on "key pee" in the company
with the beneficiary being the company; proceeds are used to buy
out the deceased's shares or ownership interest in the
company
Package policy: insurance
policy that combines several standard coverages, such as liability,
burglary and vehicle, in one package
Property/casualty coverage:
protects physical property and equipment of the business against
loss from theft, fire or other perils; all-risk coverage covers
against all risks; named-peril coverage covers only against
specific perils named in the policy
Replacement cost insurance:
covers cost of replacing property at current prices
Umbrella coverage: protects
you for payments in excess of your existing coverage or for
liabilities not covered in your other policies
Workers' compensation
insurance: covers medical and rehabilitation costs and
lost wages for employees injured at work; required by law in all
states