Insurance 101 - Glossary of Key Terms
We understand that insurance terminology can be daunting and confusing at times, so we’ve created a quick go-to guide to understanding insurance terminology! Please use this as a reference to help you understand insurance terms and coverage whenever you need!
KEY TERMS:
Product Liability
Protection against claims of bodily injury and property damage caused by products or services supplied through the business.
Umbrella (Primary/Excess)
Additional liability insurance for when claims exceed the coverage limits of an existing liability policy.
“All Risk” Property
Property insurance covering loss arising from any fortuitous cause except those that are specifically excluded.
Equipment Breakdown
Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown.
Stock and Inventory
Coverage for manufactured products ready for sale or packaged and sealed inventory containing marijuana buds or its derivatives; no harvested or growing plants fall into this category.
Living Plant (Crop)
Coverage for viable vegetation in a controlled, indoor environment still rooted in a growth medium.
Auto (Primary/Excess)
Coverage for physical damage and bodily injury involving a company-owned vehicle or vehicle driven for business-related purposes.
Workers’ Compensation
Coverage for the expenses, including wages and benefits, pertaining to work-related employee injury or illness.
Director & Officer
Coverage for losses arising as a result of wrongful act allegations and lawsuits brought against the directors and officers of a company.
Employment Practices Liability
Protection against claims that an employee’s legal rights have been violated as a result of discrimination, wrongful termination, harassment, etc.
Crime
Protection against crimes such as employee dishonesty, theft, forgery, and fraud.
Professional Liability
Protection against claims that a professional service or product you provided caused a customer financial harm.
Inland Marine
Protection for property or goods in transit.
Miscellaneous & Manuscript
Custom policy tailored to the needs of the insured often written with special types of coverage or certain conditions added.
Kidnap & Ransom
Coverage for money paid to kidnappers and extortionists, or other losses as a result of kidnapping.
Product Withdrawal/Recall
Coverage for an instance in which your product is recalled or withdrawn from the market because of known or suspected defects or tampering which has caused or is reasonably expected to cause injury.
Open Peril or Special Cause of Loss Property
Protection against damage caused by any peril except those specifically excluded in the policy.
Business Interruption
Coverage for loss of income suffered by a business when damage to the premises by a covered cause of loss causes a slowdown or suspension of operations.
Goods-in-Process
Coverage for partially completed goods, such as cannabis buds and flowers that have been harvested and are in the curing phase of production that are not yet ready for sale; no stock, crop or growing plants fall into this category.
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