Small Business Encyclopedia

Category: Insurance

Auto Insurance

A contract for an automobile in which one party agrees to pay foranother party's financial loss resulting from a specified event(for example, a collision, theft or storm damage)

Health Insurance

A policy that will pay specified sums for medical expenses or treatments. Health policies can offer many options and vary in their approaches to coverage.

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

Business Interruption Insurance

Insurance coverage that protects a business in the event of natural disaster, fire or other extenuating circumstances that affects the ability of your company to conduct business

Insurance

Protection against loss for which you pay a certain sum periodically in exchange for a guarantee that you'll be compensated under stipulated conditions for any specified loss by fire, accident, death, etc

Key Person Insurance

Life insurance on a key employee, partner or proprietor on whom the continued successful operation of a business depends. The business is the beneficiary under the policy.

Liability Insurance

Insurance coverage that protects against claims against the insurance holder of property damage, personal injury, negligence and so on

Life Insurance

An agreement that guarantees the payment of a stated amount of monetary benefits upon the death of the insured

Property Insurance

Insurance that protects the physical property and equipment of a 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.

Unemployment Insurance

A federal program whereby eligible unemployed persons receive cash benefits for a specified period of time. These benefits are paid out of funds derived from employer, employee and government contributions.

Risk Management

Decisions to accept exposure or reduce vulnerabilities by either mitigating the risks or applying cost effective controls

Special Coverage Insurance

An insurance policy expressly designed to offer a guarantee of protection in the event of specific circumstances

Workers' Compensation Insurance

Insurance that covers medical and rehabilitation costs and lost wages for employees injured at work; required by law in all states

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