Insurance Glossary

Package Policy: A policy providing several different coverages combined into one policy. Refers to a policy providing both general liability insurance and property insurance
Payroll Limitation: A limit on the amount of payroll for certain classifications used for the development of premium
Peril: Cause of loss such as fire, windstorm, collision, etc.
Personal Auto Policy (PAP): A policy insuring private-passenger autos owned by individuals
Personal Injury: A General Liability coverage for insurable offenses that cause harm, other than bodily injury, such as false arrest, detention or imprisonment, malicious prosecution, wrongful eviction, slander, libel and invasion of privacy
Personal Injury Protection (PIP): An automobile insurance coverage mandated by law in some states. The statutes typically require insurers to provide or offer to provide first-party benefits for medical expenses, loss of income, funeral expenses and similar expenses without regard to fault
Personal Property: All tangible property not classified as real property such as contents
Policy Fee: A one-time charge per policy that does not change with the size of the premium
Policy Period: The term or duration of a policy including the effective and expiration dates
Pollutant: An irritant or contaminant, whether in solid, liquid, or gaseous form, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste
Premises: The location where coverage applies
Premises-Operations: A category of hazard ordinarily insured by a general liability policy which is composed of those exposures to loss that fall outside the defined 'products-completed operations hazard,' including liability for injury or damage arising out of the insured's premises or out of the insured's business operations while such operations are in progress
Premium: The amount of money an insurance company charges to provide coverage in a policy
Pro Rata Cancellation: The cancellation of an insurance policy with the return premium being the full proportion of premium for the unexpired term of the policy, without penalty for early cancellation
Product: Items manufactured, sold, handled, distributed or disposed of by the named insured or others involved with the named insured in the course of their business. Includes containers, parts and equipment, product warranties and provision of or failure to provide instructions and warnings
Product Liability: The liability for bodily injury or property damage a merchant or manufacturer may incur as a consequence of some defect in the product sold or manufactured
Products-Completed Operations: General Liability coverage for liability arising out of the insured's products or business operations conducted away from the insured's premises once those operations have been completed
Professional Liability: Coverage designed to protect professionals such as physicians and real estate brokers, against liability incurred as a result of errors and omissions in performing professional services
Property Damage: In the general liability policy, a physical injury to property, resulting in the loss of use
Property Insurance: First-party insurance for real and personal property against physical loss or damage
Real Property: Real estate including buildings and vegetation
Renewal Policy: A policy issued to replace an expiring policy
Rents or Rental Value Insurance: Insurance that reimburses a building owner for loss of rental income due to damage by an insured peril
Replacement Cost Coverage Endorsement: A property insurance provision that changes the valuation of covered property to replacement cost with no deduction for depreciation
Return Premium: The amount of premium due the insured should the actual cost of a policy be less than the insured previously paid
Robbery: Theft of property while force is used or threatened
Short-Term Cancellation: Cancellation of an insurance policy prior to the expiration date in which a penalty in the form of a less than full pro-rata premium refund is allowed
Special Causes of Loss Form: A cause of loss form providing coverage from all causes of loss unless specifically excluded or limited
Specified Causes of Loss Coverage: Auto physical damage coverage only for losses caused by the perils listed in the policy
Sprinkler Leakage Coverage: Coverage for property damage caused by the accidental discharge or leakage of water from automatic sprinkler systems or other fire prevention devices
Surplus Lines Insurance: Insurance written by insurers not licensed in the states where the risks are located and placed with such insurers under the surplus line laws of the various states. Before such placements can be made through specially licensed surplus line agents and brokers, state laws generally require evidence reported before some predetermined future date ('sunset')
Time Element Insurance: A term referring to property coverage for loss of earnings or income resulting from the inability to put damaged property to its normal use
Transit Coverage: Coverage on the insured's property while in transit from one location to another, over land
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Sun Coast General Insurance
P.O. Box 30750
Laguna Hills, CA 92654-0750
Phone #: (949) 768-1132
Fax #: (949) 768-4045