Business insurance language is much like learning a different language, often intimidating and confusing to people. In order to better understand your policy, and to help your customers understand what you offer, it is important that you know the language.
Here are a few business insurance terms, and their meanings in order to help you have a better understanding:
ACORD certificate– An ACORD certificate is simply a standardized certificate of insurance. So when a customer asks you for your ACORD certificate, they wish to verify that you are insured.
Aggregate limit– The maximum amount an insurance company will pay for claims is called the aggregate limit. Typically, this is an annual limit, which means that this is the maximum amount the insurer will pay during one year of coverage, for all claims made during that time period.
Business owner insurance– This covers the equipment you use to run your business, as well as coverage for any business interruption and lost revenue that may have occurred while equipment was missing or damaged.
Certificate of insurance– This certificate is proof that you have insurance for your business, detailing the types, limits, and deductibles of the policy, as well as the name of your business, the insurer, and policy dates.
Deductible– When you file a claim with your insurance company, the amount you pay before coverage kicks in is your deductible. For example, a $500 deductible means that you are required you to pay the first $500 of damages on your claim. Lower premiums can be obtained if you set a higher deductible.
Endorsements- These are added to your insurance policy in order to customize its terms and conditions and may extend coverage or modify it in order to meet the unique needs of your business.
If you have questions in regards to your business, personal, or health insurance policy, contact Brazelton Insurance Group today.