Common Insurance Terms

• Automobile Insurance - provides liability protection for bodily injury or property damage suffered by others as a result of an automobile accident. Comprehensive coverage also protects vehicle for damage resulting from theft, vandalism, falling objects, and other causes of loss.
  
• Employment Practices Liability Insurance (EPLI) - protects the employer for claims made by employees on matters of discrimination (age, sex, race, etc), wrongful termination, sexual harassment, and other employment related allegations.
  
• General Liability Insurance - provides liability protection for bodily injury or property damage suffered by others as a result of a product or service of your business. Coverage is provided at your business premises and off site. Common causes of loss include slip & fall, negligence, and product liability.
  
• Health Insurance - provides coverage for an individual in case of illness or injury. Coverage typically includes visits to a doctor, medicine, emergency care, hospital stays, and other medical expenses. Policies differ in what is covered, size of deductible, limits of coverage and treatment options.
  
• Life Insurance - guarantees a specific sum of money to a designated beneficiary(ies) upon the death of the uninsured (term), or to the insured individual if he/she lives beyond a certain age (whole, universal). Some factors to consider in determining the amount of life insurance to purchase include final medical bills, funeral costs, and future or ongoing expenses such as day care for children, education and mortgage/housing payments. Life insurance benefits are income tax free.
  
• Property Insurance - provides protection for loss or damage to your business contents, stock, equipment, furniture, building, and improvements. Common causes of loss include fire, theft, wind, and water damage. Coverage for loss of income and expenses may also be provided when a loss prevents your business from operating.
  
• Professional Liability / Errors and Omissions Insurance - covers any professional error made by a professional that leads to Bodily Injury, Professional Injury, and/or Personal Injury. (Ex: A doctor misdiagnosis a patient.)
  
• Surety Bonds - are an instrument to guarantee performance of the contractual obligations of the parties involved. There are three parts of a Surety Bond:
  
  • Obligee requires the bond.
  • Obligor/Principal performs the contractual obligation.
  • Surety Company assures the Obligor/Principal will fulfill terms of the contract.
  
  
• Temporary Disability Insurance (TDI) - is compensation to an employee that suffers NON-WORK related injuries, and is unable to work. This compensation covers loss of wages only, and the employee must be eligible to receive this benefit. TDI benefits are taxable.
  
• Workers' Compensation - is compensation to an employee that suffers injury (or disease) resulting from their work related duties, and is unable to work. In addition to the employee's loss of wages, this benefit also covers the employee's medical expenses, rehabilitation services, and death benefits.