The brokers at Lockton Affinity will be your best resource for learning more about your coverage options, and translating insurance jargon. You can reach them at (844) 412-5957 or FracturedAtlas@LocktonAffinity.com. However, in case you need a quick reference, we've included a list of common insurance industry terms and definitions below:
ACORD A standards development organization for the insurance industry, ACORD creates the standard forms we use, including insurance certificates.
Additional Insured An entity that you add to your insurance policy that needs to be covered if they have an insurance claim that arises because of your activities. This is usually used when our members add venues or filming locations as Additional Insureds. You can add an entity as an Additional Insured by requesting a certificate for them.
Additional Premium to Equal Policy Minimum Underwriters use a rating process to determine your insurance premium. When that rate is below the absolute minimum premium that the insurer has established for that policy, “additional premium to equal policy minimum” will appear as a line item on your quote, bringing your rate up to the minimum premium.
A.M. Best An independent company that provides credit ratings of insurance companies. Their financial-strength ratings measure an insurance company’s ability to pay claims.
Binder A temporary contract of insurance, oral or written, offered by an insurer pending issuance of a permanent policy. It is usually written for a period of 30 days and remains in force until a permanent policy is either issued or denied.
Broker A broker represents the person or company seeking insurance (the insured).
Business Personal Property Items such as office furniture, phones, and fixtures that you use in your business.
Cash Value Replacement cost minus depreciation. Our equipment policy is Replacement Cost, which pays out more in the event of a claim, since it does not account for depreciation.
Certificate of Insurance (COI) A document that evidences the existence of insurance coverage.
Claim A formal request to the insurance company asking for payment based on the terms of your insurance policy.
Data/Negative Loss This coverage will pay for physical loss or damage to negatives or digital data, covering expenses from hard drive recovery to the expenses incurred to re-shoot the lost or damaged material.
Deductible This is the amount of the claim that you will pay out of pocket before the insurance company starts paying.
Employment Practices Liability This coverage comes into play if someone files a lawsuit against you based on your employment practices, i.e., independent contractor vs. employee suits, gender discrimination, etc.
Endorsement A form added to an insurance policy that modifies the coverage in some way. These are produced by the insurance company itself, and typically take 2-10 business days to be processed.
General Aggregate Limit The highest dollar amount of insurance that the insurance company will pay out if you have multiple claims during a policy term (usually one year).
General Liability A policy that covers you if you injure other people or other people’s stuff.
Hired and Non-Owned Auto Liability This covers you when an auto that you lease, hire or borrow causes damage to someone or something else. It does not include damage to the auto itself.
Hired Auto Physical Damage
Covers damage to the auto itself.
Insured You, if you have an insurance policy.
Insurer The insurance company that issues your policy.
Limit The most your insurance policy will pay for a specific type of claim.
Loss Payee The entity that is paid in the event of an equipment claim. If you are renting equipment from a rental house, they will ask to be added as Loss Payee, so that the insurance company will pay them directly if equipment rented to you is damaged.
Medical Payments “No fault” coverage for first aid and medical services. Sometimes referred to as “Good Neighbor” coverage, a policy including medical payments coverage will pay out even if negligence isn’t established.
Newly Acquired Equipment A provision included on most equipment policies that covers you for equipment that any reasonable and prudent person would not have had time to add to their insurance policy between when they acquired it and when the loss occurred.
Per Occurrence Limit The highest dollar amount of insurance that the insurance company will pay out per claim.
Personal and Advertising Injury An injury, other than bodily injury, arising out of oral or written publication of material (including advertising) that slanders or libels another’s goods, products, or services, or that infringes on copyright, title, or slogan.
Policy A contract between the insurer and insured, which determines the claims that the insurer is legally required to pay.
Premium The cost of the insurance policy, paid to the insurance company.
Products and Completed Operations Coverage included in many liability policies that will pay out for claims related to products that you sell that are no longer in your possession, or that happen after you have completed a job and left the premises. For instance, if you sell someone a sweater, and six months later they sue you, claiming that the sweater turned their skin green, this is the coverage that would come into play.
Quote An offer of insurance issued by an insurer. It will tell you how much premium your policy will cost.
Quote Expiration Date The last day you can purchase your insurance quote without having to reapply.
Rental Reimbursement This coverage will pay for you to rent replacement equipment when your equipment is damaged, resulting in an insurance claim. This is similar to when your car insurance will pay for a rental car while yours is in the shop.
Replacement Cost The amount of money it would cost to replace a damaged or destroyed item with one of like kind and quality at the time of loss. An equipment policy is either Replacement Cost or Actual Cash Value.
Terrorism Risk Insurance Act (TRIA) A federal law that has existed since 2002 that provides government backup for insurance claims that arise out of acts of terrorism. It allows you to purchase insurance that will still pay out if you have a claim as a result of a terrorist act.
Umbrella Provides coverage for higher limits than are generally available under basic liability policies, as well as for liability exposures either limited or excluded under basic liability policies.
Workers Compensation Audit Your premium is based on how much you pay out to employees. Every year, your policy will be audited by the insurance company to determine how much your employees were paid, and you will receive a credit or charged extra premium, depending on how your audit compares to your payroll estimates at the beginning of the year.
Your Tools This coverage will pay for hand-held manual tools, like screwdrivers and hammers, valued at $1,000 or less.