sampraxi/business-glossary · Datasets at Hugging Face

Term stringlengths 4 179	Definition stringlengths 17 599 ⌀
Employee risks	Uncertainty regarding the availability of qualified employees, the injury or death of any employee, the unexpected loss of a key employee, strikes, and suits brought by an employee or group of employees.
Employees as additional insureds endorsement	Endorsement used with the business auto coverage form that covers employees while they are using an auto not owned, hired, or borrowed by the business in the business or personal affairs of the named insured.
Employers liability coverage	Coverage included in the Workers’ Compensation and Employers Liability policy that covers the employer’s liability at common law arising out of employees’ work-related injuries and occupational diseases.
Employment practices liability insurance	Type of policy that covers a business’s losses arising out of wrongful termination, discrimination, sexual harassment, and other employment-related practices.
Endorsement	Document attached to an insurance policy that changes the policy in some way.
Enterprise risk management	Focuses on questions like: How does this one decision affect the rest of the organization? Who or what is put at risk because this particular action is taken?
Equipment breakdown protection coverage form	Title of ISO coverage form used to write what is traditionally called boiler and machinery insurance.
Equipment dealers coverage form	Filed commercial inland marine coverage form that covers mobile equipment and construction equipment dealers; covers the insured’s stock in trade as well as customer property in the insured’s care, custody, or control.
Equitable estoppel	Prevents a person from adopting a new position that contradicts a previous position created by words, silence, or actions if allowing the adoption of the new position would unfairly harm the person who relied on the previous position to his or her detriment. Also known as estoppel in pais.
Errors and omissions insurance (E&O)	Professional liability coverage that protects the insured against liability for committing an error or omission in the performance of professional duties.
Escheat	A common law doctrine to assure that unclaimed property of an individual that dies intestate is not left without an owner.
Estoppel	Principle that states that if one intentionally or unintentionally creates the impression that a certain fact exists, and an innocent party relies on that impression and is injured as a result, the guilty party may be legally prohibited from asserting that the fact does not exist.
Excess coverage	Insurance that cover losses above an attachment point, below which usually there is another insurance policy or self-insured retention.
Excess electronic equipment endorsement	Personal auto policy endorsement that allows an insured to add coverage for tapes, records, and disks used with electronic media and to increase the limit of insurance for electronic equipment that is permanently installed in an area of the auto not normally used for installing this equipment.
Excess insurance	When two or more policies or coverages apply to the same loss, the one that applies only after the limits of the primary coverage have been exhausted.
Excess layer	A level of coverage above the primary layer.
Excess lines agent	Agent licensed by the state to handle the placement of business with nonadmitted insurers; also called surplus lines agent.
Excess of loss reinsurance	The reinsurer agrees to indemnify the primary insurer for all losses exceeding a specified retention either on a per loss basis or an aggregate loss basis.
Exclusions	Section of an insurance policy that lists property, perils, persons, or situations that are not covered under the policy.
Exclusive agent	An agent who markets insurance for a single company; also called captive agent.
Exclusive remedy doctrine	One of the precepts upon which the workers’ compensation system was founded; stipulates that the only means available to employees to receive compensation from employers for injuries covered by workers’ compensation laws is through the benefits mandated by those laws.
Exculpatory	An agreement altering tort and contract law. Commonly used in waivers to protect one party against injury suits from another party while participating in activities that may prove inherently dangerous.
Expense loading	The part of the final rate intended to cover the insurance carrier’s expenses and allow for some underwriting profit.
Expense ratio	Ratio that indicates the cost of doing business; it is calculated by dividing the amount of underwriting expenses by the amount of written premium.
Experience modification factor	In experience rating, the factor applied to reduce the premium when loss experience is better than expected.
Experience rating	Type of merit rating that determines premium based on previous loss experience.
Exports	Category of the nationwide definition that includes risks eligible for ocean marine insurance.
Exposure	A condition or situation that presents a possibility of loss.
Express authority	Legal doctrine that states that an agent has the authority specifically given to the agent, either orally or in writing, by the principal.
Express contract	An express contract is one that has been reduced to writing; however, some oral contracts may be given the weight of express contracts provided all requirements of a contract are present (offer, acceptance, consideration, etc.).
Extended reporting period (ERP)	Period of time provided by the claims-made commercial general liability coverage form during which coverage will be provided for claims made after the expiration date of the policy if certain conditions are met; the basic ERP runs 60 days and can be extended to five years; the supplemental ERP runs for an unlimited duration, but is available only by endorsement for an additional premium.
Extortion-Commercial entities endorsement	Endorsement used with the commercial crime policy that covers loss of money, securities, and other property when surrendered away from the premises as a result of a threat to do bodily harm to the insured, an employee or a relative of either who is being held captive.
Extra expense coverage form	Commercial property coverage form that covers additional expenses incurred by the insured business to continue operations following a direct loss by a peril insured against.
Factual expectancy	A situation in which a party experiences economic advantage if an insured event does not occur or economic harm if the event does occur.
Fair access to insurance requirements	(FAIR) plan Program established by law that makes property insurance available to insureds who might otherwise be uninsurable in the standard market.
Fair Credit Reporting Act	Federal law that allows consumers who are denied insurance because of information contained in a credit report to be notified and allowed to obtain the information used in the report from the reporting agency.
Family risks	The unexpected illness, injury, leaving, or death of a family member.
Farm coverage	Part of the commercial package policy that provides property and liability insurance to farmers for both their personal and business exposures.
Federal Employers Liability Act (FELA)	Federal law that provides benefits to injured railroad workers who are exempt under state workers’ compensation laws.
Fellow servant rule	Common law defense against liability that allowed employers to escape liability for injury to an employee if another employee’s carelessness had contributed to the loss.
Fidelity bond	Class of bonds that guarantees an employee’s honest discharge of duty; written to protect an insured from dishonest acts by employees.
Fiduciary	Person who stands in a special relationship of trust to another person.
Fiduciary bond	Type of surety bond that guarantees that a fiduciary will fulfill its obligations set forth by law.
Fiduciary liability policy	Insurance that protects people who manage private pension and employee benefit plans against liability for violation of the federal ERISA law.
Field underwriting	Selection of clients by the agent in accordance with company standards.
File and use	Method of rate and form ratification used by some state insurance departments that allows a company to begin using forms or rates as soon as they are filed by the department; the department eventually reviews the filing and officially accepts or rejects it.
Filed form	Standardized inland marine form that can be written under the commercial inland marine coverage part of the commercial package policy.
Film coverage form	Filed commercial inland marine form that covers exposed motion picture film until production is complete and positive prints are made.
Final rate	The total of the loss cost plus the expense loading. Also know as gross rate.
Financial responsibility laws	State laws that require owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.
Finite risk insurance plan	A risk financing plan that transfers a limited amount of risk to an insurer.
First party loss	Property insurance loss.
First-named insured	First person listed in the declarations as an insured; the first-named insured may have a higher level of duties or rights under the policy.
Flammable liquids	Defines liquids having a closed cup flashpoint below 100 degrees Fahrenheit and a vapor pressure not exceeding 40 pounds per square inch.
Flat cancellation	Cancellation of a policy by the insured or the insurance company on its effective date.
Flex rating	A hybrid between “file and use” and “use and file” regulations. In flex rating states, insurance carriers file a rate “range.” Rates can go up or down within that range without prior approval.
Floater	Insurance policy that covers property wherever it is located.
Floor plan coverage form	Filed commercial inland marine form that covers stock that is subject to a floor plan arrangement, where a dealer borrows money from a lender with which to pay for merchandise.
Force majeure	A contractual provision that excuses a party from liability for the failure to comply with the provisions of the contract due directly to events beyond the control of that party.
Foreign company	An insurance company doing business in a state other than the one in which it is incorporated.
Fortuitous loss	A loss that is accidental and unexpected.
Fraternal Benefit Society	An incorporated society or order, without capital stock, that is operated on the lodge system and is conducted solely for the benefit of its members and their beneficiaries and not for profit; Fraternal benefit societies offer insurance that is available only to members.
Fraud	A deliberate misrepresentation that causes harm; an all-out effort by one party to deceive and cheat the other.
Free along side	The seller is responsible for insuring the property until it is next to the ship prior to leaving.
Free on board	Two definitions apply. Internationally, FOB indicates that the seller insures the goods until they are loaded on the ship for transport. Domestically, FOB may be followed by other instructions; such as ‘FOB Destination,” meaning that the seller is responsible until the goods arrive at the final destination; or “FOB Dock,” making the seller responsible until they arrive at the dock named.
Freight insurance	Type of ocean marine insurance that protects the insured against the loss of shipping costs.
Frequency	The probability or likelihood than an undesired event will occur or that it will occur more than once.
Functional replacement cost	Method to determine reimbursement for some losses, particularly those to antique, ornate, or custom construction; the damaged property is repaired or replaced with less expensive, but functionally equivalent, materials.
Functional valuation method	A valuation method in which the insured is required to pay no more than the cost to repair or replace the damaged or destroyed property with property that is its functional equivalent.
Funded loss reserves	Cash is set aside specifically to pay for any loss or losses suffered by the entity. The funds are not intended for any other use or purpose.
Gap factor	An increase in limit over the amount of the developed business income exposure to account for any unexpected increase in revenue and/or to provide a cushion against any unexpected extension in the period of restoration.
Garage coverage form	Commercial auto coverage form that provides liability, garagekeepers, and physical damage coverages for vehicle dealers, including dealers that have repair operations on the business premises.
Garagekeepers insurance	Coverage that is part of the garage coverage form; covers a garage risk’s legal liability for customers’ autos in the care, custody, or control of the garage; at the insured’s option and for an additional premium, can also apply without regard to fault.
General average loss	Ocean marine term used to indicate a partial loss resulting from a sacrifice of cargo to save remaining property (jettison); each party shares in the loss in proportion to his total interest in the property being transported.
General conditions form	Separate form that lists the conditions that apply to a policy.
General contractor	An individual or entity with whom the principal/owner directly contracts to perform specified jobs.
General damages	Type of compensatory damages that reimburse the injured party for such things as pain and suffering and disfigurement.
General exclusion classifications	These are the opposite of “standard exception” classes. General exclusion class activities are completely unexpected and are not considered part of the analogy of the governing classification of most operations.
General inclusion classifications	Some activities are considered to be an integral part of the business’ operations thus the payroll of the individuals engaged in these activities is included in the governing classification.
Ghost policy	A a workers compensation policy written for an unincorporated business with no employees and which does not extend coverage to the business’ owner(s), or an incorporated business that excludes the officers.
Hazard	Something that increases the chance of loss or a source of danger. A hazard increases the frequency and/or severity of a loss. There are five types of hazards with which insureds and insurers must concern themselves: Physical Hazard, Moral Hazard, Morale Hazard, Legal Hazard & Information Hazard.
Hazard analysis	A method of analysis the identifies conditions that increase the frequency or severity of loss.
Health insurance	Line of insurance that protects the insured against financial loss due to medical bills.
Hedging	A financial maneuver intended to avoid wide fluctuations in value or “insure” against total financial ruin should an investment prove poor.
Hired and nonowned auto liability endorsement	Businessowners policy endorsement used to cover hired or nonowned autos used by the business.
Hold harmless agreement	Contractual arrangement where one party assumes the liability of a situation and relieves the other party of responsibility.
Home day care coverage endorsement	Homeowners policy endorsement used to provide coverage for home daycare businesses.
Homeowners policy	Personal multiline policy for homeowners that includes both property and liability coverages; there are different forms that provide varying degrees of property coverage; liability coverage is the same in all forms.
Hull insurance	Ocean marine insurance that provides coverage for physical damage to the ship.
Human Perils	Theft, vandalism, negligence, regulation, poor design or production, etc. An increase in the probability of loss because of a person or persons.
Implied authority	Authority given by the principal to the agent that is not formally expressed or communicated.
Implied contract	Implied contracts are oral or “understood” agreements or promises between parties generally created by actions or the assumed intentions of the parties or the surrounding circumstances.
Implied warranties	In ocean marine insurance, warranties that are not written into the policy, but have become a part of the policy by custom.
Imports	Category of the nationwide definition that includes risks eligible for ocean marine insurance.
In the course	A function of the timing and location of the injury or illness.
Incidental occupancy	A business conducted in a dwelling used primarily as a residence with no other businesses operating on the same premises; individual insurers have specific guidelines about the types of incidental businesses permitted, but examples include business or professional offices and private schools or instructional studios.
Income risks	Differs based on who is subject to the risk. Individuals require a certain amount of cash to live at a specified level. Organizations require cash to operate effectively and efficiently.
Incompetent party	Someone who lacks sufficient mental capacity to enter a contract. This includes someone who has not reached a specific age (or marital status) as defined by specific state or federal statute.
Incurred losses	One of the components used to calculate the loss ratio; it includes paid losses and certain expenses associated with claim handling.
Indemnify	To return the insured, as closely as possible, to the same financial condition that existed prior to the loss or would have existed had no loss occurred without enrichment or improved position.

Employee risks

Uncertainty regarding the availability of qualified employees, the injury or death of any employee, the unexpected loss of a key employee, strikes, and suits brought by an employee or group of employees.

Employees as additional insureds endorsement

Endorsement used with the business auto coverage form that covers employees while they are using an auto not owned, hired, or borrowed by the business in the business or personal affairs of the named insured.

Employers liability coverage

Coverage included in the Workers’ Compensation and Employers Liability policy that covers the employer’s liability at common law arising out of employees’ work-related injuries and occupational diseases.

Employment practices liability insurance

Type of policy that covers a business’s losses arising out of wrongful termination, discrimination, sexual harassment, and other employment-related practices.

Endorsement

Document attached to an insurance policy that changes the policy in some way.

Enterprise risk management

Focuses on questions like: How does this one decision affect the rest of the organization? Who or what is put at risk because this particular action is taken?

Equipment breakdown protection coverage form

Title of ISO coverage form used to write what is traditionally called boiler and machinery insurance.

Equipment dealers coverage form

Filed commercial inland marine coverage form that covers mobile equipment and construction equipment dealers; covers the insured’s stock in trade as well as customer property in the insured’s care, custody, or control.

Equitable estoppel

Prevents a person from adopting a new position that contradicts a previous position created by words, silence, or actions if allowing the adoption of the new position would unfairly harm the person who relied on the previous position to his or her detriment. Also known as estoppel in pais.

Errors and omissions insurance (E&O)

Professional liability coverage that protects the insured against liability for committing an error or omission in the performance of professional duties.

Escheat

A common law doctrine to assure that unclaimed property of an individual that dies intestate is not left without an owner.

Estoppel

Principle that states that if one intentionally or unintentionally creates the impression that a certain fact exists, and an innocent party relies on that impression and is injured as a result, the guilty party may be legally prohibited from asserting that the fact does not exist.

Excess coverage

Insurance that cover losses above an attachment point, below which usually there is another insurance policy or self-insured retention.

Excess electronic equipment endorsement

Personal auto policy endorsement that allows an insured to add coverage for tapes, records, and disks used with electronic media and to increase the limit of insurance for electronic equipment that is permanently installed in an area of the auto not normally used for installing this equipment.

Excess insurance

When two or more policies or coverages apply to the same loss, the one that applies only after the limits of the primary coverage have been exhausted.

Excess layer

A level of coverage above the primary layer.

Excess lines agent

Agent licensed by the state to handle the placement of business with nonadmitted insurers; also called surplus lines agent.

Excess of loss reinsurance

The reinsurer agrees to indemnify the primary insurer for all losses exceeding a specified retention either on a per loss basis or an aggregate loss basis.

Exclusions

Section of an insurance policy that lists property, perils, persons, or situations that are not covered under the policy.

Exclusive agent

An agent who markets insurance for a single company; also called captive agent.

Exclusive remedy doctrine

One of the precepts upon which the workers’ compensation system was founded; stipulates that the only means available to employees to receive compensation from employers for injuries covered by workers’ compensation laws is through the benefits mandated by those laws.

Exculpatory

An agreement altering tort and contract law. Commonly used in waivers to protect one party against injury suits from another party while participating in activities that may prove inherently dangerous.

Expense loading

The part of the final rate intended to cover the insurance carrier’s expenses and allow for some underwriting profit.

Expense ratio

Ratio that indicates the cost of doing business; it is calculated by dividing the amount of underwriting expenses by the amount of written premium.

Experience modification factor

In experience rating, the factor applied to reduce the premium when loss experience is better than expected.

Experience rating

Type of merit rating that determines premium based on previous loss experience.

Exports

Category of the nationwide definition that includes risks eligible for ocean marine insurance.

Exposure

A condition or situation that presents a possibility of loss.

Express authority

Legal doctrine that states that an agent has the authority specifically given to the agent, either orally or in writing, by the principal.

Express contract

An express contract is one that has been reduced to writing; however, some oral contracts may be given the weight of express contracts provided all requirements of a contract are present (offer, acceptance, consideration, etc.).

Extended reporting period (ERP)

Period of time provided by the claims-made commercial general liability coverage form during which coverage will be provided for claims made after the expiration date of the policy if certain conditions are met; the basic ERP runs 60 days and can be extended to five years; the supplemental ERP runs for an unlimited duration, but is available only by endorsement for an additional premium.

Extortion-Commercial entities endorsement

Endorsement used with the commercial crime policy that covers loss of money, securities, and other property when surrendered away from the premises as a result of a threat to do bodily harm to the insured, an employee or a relative of either who is being held captive.

Extra expense coverage form

Commercial property coverage form that covers additional expenses incurred by the insured business to continue operations following a direct loss by a peril insured against.

Factual expectancy

A situation in which a party experiences economic advantage if an insured event does not occur or economic harm if the event does occur.

Fair access to insurance requirements

(FAIR) plan Program established by law that makes property insurance available to insureds who might otherwise be uninsurable in the standard market.

Fair Credit Reporting Act

Federal law that allows consumers who are denied insurance because of information contained in a credit report to be notified and allowed to obtain the information used in the report from the reporting agency.

Family risks

The unexpected illness, injury, leaving, or death of a family member.

Farm coverage

Part of the commercial package policy that provides property and liability insurance to farmers for both their personal and business exposures.

Federal Employers Liability Act (FELA)

Federal law that provides benefits to injured railroad workers who are exempt under state workers’ compensation laws.

Fellow servant rule

Common law defense against liability that allowed employers to escape liability for injury to an employee if another employee’s carelessness had contributed to the loss.

Fidelity bond

Class of bonds that guarantees an employee’s honest discharge of duty; written to protect an insured from dishonest acts by employees.

Fiduciary

Person who stands in a special relationship of trust to another person.

Fiduciary bond

Type of surety bond that guarantees that a fiduciary will fulfill its obligations set forth by law.

Fiduciary liability policy

Insurance that protects people who manage private pension and employee benefit plans against liability for violation of the federal ERISA law.

Field underwriting

Selection of clients by the agent in accordance with company standards.

File and use

Method of rate and form ratification used by some state insurance departments that allows a company to begin using forms or rates as soon as they are filed by the department; the department eventually reviews the filing and officially accepts or rejects it.

Filed form

Standardized inland marine form that can be written under the commercial inland marine coverage part of the commercial package policy.

Film coverage form

Filed commercial inland marine form that covers exposed motion picture film until production is complete and positive prints are made.

Final rate

The total of the loss cost plus the expense loading. Also know as gross rate.

Financial responsibility laws

State laws that require owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.

Finite risk insurance plan

A risk financing plan that transfers a limited amount of risk to an insurer.

First party loss

Property insurance loss.

First-named insured

First person listed in the declarations as an insured; the first-named insured may have a higher level of duties or rights under the policy.

Flammable liquids

Defines liquids having a closed cup flashpoint below 100 degrees Fahrenheit and a vapor pressure not exceeding 40 pounds per square inch.

Flat cancellation

Cancellation of a policy by the insured or the insurance company on its effective date.

Flex rating

A hybrid between “file and use” and “use and file” regulations. In flex rating states, insurance carriers file a rate “range.” Rates can go up or down within that range without prior approval.

Floater

Insurance policy that covers property wherever it is located.

Floor plan coverage form

Filed commercial inland marine form that covers stock that is subject to a floor plan arrangement, where a dealer borrows money from a lender with which to pay for merchandise.

Force majeure

A contractual provision that excuses a party from liability for the failure to comply with the provisions of the contract due directly to events beyond the control of that party.

Foreign company

An insurance company doing business in a state other than the one in which it is incorporated.

Fortuitous loss

A loss that is accidental and unexpected.

Fraternal Benefit Society

An incorporated society or order, without capital stock, that is operated on the lodge system and is conducted solely for the benefit of its members and their beneficiaries and not for profit; Fraternal benefit societies offer insurance that is available only to members.

Fraud

A deliberate misrepresentation that causes harm; an all-out effort by one party to deceive and cheat the other.

Free along side

The seller is responsible for insuring the property until it is next to the ship prior to leaving.

Free on board

Two definitions apply. Internationally, FOB indicates that the seller insures the goods until they are loaded on the ship for transport. Domestically, FOB may be followed by other instructions; such as ‘FOB Destination,” meaning that the seller is responsible until the goods arrive at the final destination; or “FOB Dock,” making the seller responsible until they arrive at the dock named.

Freight insurance

Type of ocean marine insurance that protects the insured against the loss of shipping costs.

Frequency

The probability or likelihood than an undesired event will occur or that it will occur more than once.

Functional replacement cost

Method to determine reimbursement for some losses, particularly those to antique, ornate, or custom construction; the damaged property is repaired or replaced with less expensive, but functionally equivalent, materials.

Functional valuation method

A valuation method in which the insured is required to pay no more than the cost to repair or replace the damaged or destroyed property with property that is its functional equivalent.

Funded loss reserves

Cash is set aside specifically to pay for any loss or losses suffered by the entity. The funds are not intended for any other use or purpose.

Gap factor

An increase in limit over the amount of the developed business income exposure to account for any unexpected increase in revenue and/or to provide a cushion against any unexpected extension in the period of restoration.

Garage coverage form

Commercial auto coverage form that provides liability, garagekeepers, and physical damage coverages for vehicle dealers, including dealers that have repair operations on the business premises.

Garagekeepers insurance

Coverage that is part of the garage coverage form; covers a garage risk’s legal liability for customers’ autos in the care, custody, or control of the garage; at the insured’s option and for an additional premium, can also apply without regard to fault.

General average loss

Ocean marine term used to indicate a partial loss resulting from a sacrifice of cargo to save remaining property (jettison); each party shares in the loss in proportion to his total interest in the property being transported.

General conditions form

Separate form that lists the conditions that apply to a policy.

General contractor

An individual or entity with whom the principal/owner directly contracts to perform specified jobs.

General damages

Type of compensatory damages that reimburse the injured party for such things as pain and suffering and disfigurement.

General exclusion classifications

These are the opposite of “standard exception” classes. General exclusion class activities are completely unexpected and are not considered part of the analogy of the governing classification of most operations.

General inclusion classifications

Some activities are considered to be an integral part of the business’ operations thus the payroll of the individuals engaged in these activities is included in the governing classification.

Ghost policy

A a workers compensation policy written for an unincorporated business with no employees and which does not extend coverage to the business’ owner(s), or an incorporated business that excludes the officers.

Hazard

Something that increases the chance of loss or a source of danger. A hazard increases the frequency and/or severity of a loss. There are five types of hazards with which insureds and insurers must concern themselves: Physical Hazard, Moral Hazard, Morale Hazard, Legal Hazard & Information Hazard.

Hazard analysis

A method of analysis the identifies conditions that increase the frequency or severity of loss.

Health insurance

Line of insurance that protects the insured against financial loss due to medical bills.

Hedging

A financial maneuver intended to avoid wide fluctuations in value or “insure” against total financial ruin should an investment prove poor.

Hired and nonowned auto liability endorsement

Businessowners policy endorsement used to cover hired or nonowned autos used by the business.

Hold harmless agreement

Contractual arrangement where one party assumes the liability of a situation and relieves the other party of responsibility.

Home day care coverage endorsement

Homeowners policy endorsement used to provide coverage for home daycare businesses.

Homeowners policy

Personal multiline policy for homeowners that includes both property and liability coverages; there are different forms that provide varying degrees of property coverage; liability coverage is the same in all forms.

Hull insurance

Ocean marine insurance that provides coverage for physical damage to the ship.

Human Perils

Theft, vandalism, negligence, regulation, poor design or production, etc. An increase in the probability of loss because of a person or persons.

Implied authority

Authority given by the principal to the agent that is not formally expressed or communicated.

Implied contract

Implied contracts are oral or “understood” agreements or promises between parties generally created by actions or the assumed intentions of the parties or the surrounding circumstances.

Implied warranties

In ocean marine insurance, warranties that are not written into the policy, but have become a part of the policy by custom.

Imports

Category of the nationwide definition that includes risks eligible for ocean marine insurance.

In the course

A function of the timing and location of the injury or illness.

Incidental occupancy

A business conducted in a dwelling used primarily as a residence with no other businesses operating on the same premises; individual insurers have specific guidelines about the types of incidental businesses permitted, but examples include business or professional offices and private schools or instructional studios.

Income risks

Differs based on who is subject to the risk. Individuals require a certain amount of cash to live at a specified level. Organizations require cash to operate effectively and efficiently.

Incompetent party

Someone who lacks sufficient mental capacity to enter a contract. This includes someone who has not reached a specific age (or marital status) as defined by specific state or federal statute.

Incurred losses

One of the components used to calculate the loss ratio; it includes paid losses and certain expenses associated with claim handling.

Indemnify

To return the insured, as closely as possible, to the same financial condition that existed prior to the loss or would have existed had no loss occurred without enrichment or improved position.