Glossary  |  Fillmore Insurance Agency

According to the International Risk Management Institute (IRMI), Action Over is defined as a type of action in which an injured employee, after collecting workers compensation benefits from the employer, sues a third party for contributing to the employee’s injury. Often the contractual liability section within the GL policy form leaves the employer exposed to suits against their GL policy via the Employers Liability (EL) exclusion. An example of this is when a subcontractor injured on a jobsite files a claim against his Workers Compensation carrier and then also files a claim against the General Contractor responsible for hiring the subcontractor. The subcontractor brings the “action over” back to the GC and the exception to the EL exclusion. This exclusion does not apply to liability assumed by the insured under an insured’s contract, which leaves the GC vulnerable. If the GC and the subcontractor have a written hold harmless or indemnification agreement, the GC may be held liable in an action over lawsuit. This also may apply to a temporary employee hired by the employer.

“Advertising Injury” means injury rising out of an offense committed in the course of your advertising activities, if such injury rises out of libel, slander, defamation, violation of right of privacy, piracy, unfair competition or infringement of copyright, title or slogan.

1. A limit in an insurance policy stipulating the most it will pay for all covered losses sustained during a specified period of time, usually one year. Aggregate limits are commonly included in liability policies. While not often used in property insurance, aggregates are sometimes included with respect to certain catastrophic exposures, e.g., earthquake and flood.

2. The dollar amount of reinsurance coverage during one specified period, usually 12 months, for all reinsurance losses sustained under a treaty during such period.

3. A typical aggregate limit for a contractors insurance policy is 1,000,000 or 2,000,000.

A property policy expression now out of fashion. It was used to designate contracts that promised coverage against “all risks of direct physical loss” in contrast to forms that covered for specific, named perils. The word “all” came to be perceived as open to broader interpretation than insurers intended and it was dropped in favor of the promise to cover “risks of physical loss.”

Covers your bar for employee on patron or patron on patron violence or physical injury.

There are basically six different types of coverages. Some may be required by law. Others are optional. They are:

1. Bodily injury liability, for injuries the policyholder’s causes to someone else.

2. Medical payments or Personal Injury Protection (PIP) for treatment of injuries to the driver and passengers of the policyholder car.

3. Property damage liability, for damage the policyholder causes to someone else’s property.

4. Collision, for damage to the policyholder’s car from a collision.

5. Comprehensive, for damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft.

6. Uninsured motorist’s coverage, for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.

7. Underinsured motorist insurance kicks in when a liable driver does not have enough insurance to cover your damages. Your insurance will determine the amount that will be paid by the responsible party and then pay the rest. The limit of this coverage listed on your policy may be confusing, because it refers to the total amount that both your insurance company and the underinsured motorist’s insurance company will pay, as opposed to an additional amount your insurance company pays.

Auto Loan or Lease Coverage

If your vehicle is in an accident and is a total loss, this commercial auto insurance policy covers the difference between the unpaid amount on the loan or lease, and the actual cash value of the vehicle.

General Liability: Insures against trip/slip and fall, food poisoning, injury on premises, property damage, etc.

Liquor Liability Insures against claims from over-serving, alcohol poisoning, etc.

Workers Compensation: Covers your employees against injury in the workplace.

Business Income: Insures your businesses’ income while your establishment is in repair for a covered loss

Products Coverage (Breweries): Cover your brewery’s product when your patrons take it home.

Equipment Coverage: Insures your restaurant/bar/brewery equipment against property damage/loss.

Business Property: Your non-fixed property, tenant finish and catering equipment.

Employer Practices Liability Insurance (EPLI): Very important for establishments that are high energy or serve liquor. Covers your business, management and employees from sexual harassment, wrongful termination and other civil claims.

Assault and Battery Coverage: Covers your bar for employee on patron or patron on patron violence or physical injury.

Theft/Crime: Covers you for theft or crime caused by outsiders and your employees.

Business Auto: Covers your delivery, catering or service vehicles on the road.

Spoilage: Insures your stock for loss caused by power failure/outage.

Umbrella: Overlays your other insurance products to increase your liability coverage.

Covered perils in a property insurance contract: fire, lightning, windstorm, civil commotion, smoke, hail, aircraft, vehicles, explosion and riot.