US: A policy which primarily provides coverage of benefits to a business as contrasted to an individual. It is issued to indemnify a business for the loss of services of a key employee or a partner who becomes disabled.
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MEDICAL,USA: Insurance that insures the business rather than an individual person.
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Insurance written for businesses. Can refer to health insurance or life insurance written for the principals of a company.
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Policies written for business purposes, such as key employee, sole proprietorship, partnership and corporation.

A package policy that provides both property and liability coverage for eligible small businesses. BOPs are written on special coverage forms that are generally very similar to their monoline property and liability form counterparts, but they typically have some unique features that make them especially advantageous for businesses that qualify. Both the American Association of Insurance Services (AAIS) and the Insurance Services Office, Inc. (ISO), offer BOP programs for use by their member insurers. Also, many insurers have their own BOP programs.
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A package of property and liability insurance for small and medium size businesses, the BOP owes its origin to the success of the homeowners policy.

Refers to an insurer’s cancellation and reissuance of the same policy. Typically used to switch a policy renewal to a new date.
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Refers to an insurer&#8217s cancellation and reissuance of the same policy. Typically used to switch a policy renewal to a new date.

An exclusion common to several forms of liability insurance, which eliminates coverage with respect to damage to property in the insured’s care, custody, or control. Coverage for this exposure is available under other, more specific forms of insurance, such as motor truck cargo and garagekeepers insurance. In some cases, CCC has been determined to entail physical possession of the property; in others, any party with a legal obligation to exercise care with respect to property has been deemed to have that property in its CCC.

US: A severe loss characterized by extreme force and/or sizable financial loss. Often abbreviated to “cat.”
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A sudden and severe calamity or disaster. A single event which causes a loss of extraordinary large amount. The exact definition may vary occasionally and is usually dependent on policy contract wordings e.g., it might mean all losses, in a 72 hours period, arising from a wind storm.
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A sudden and widespread disaster. FEMA definition: “… Any natural or manmade incident, including terrorism, that results in extraordinary levels of mass casualties, damage or disruption severely affecting the population, infrastructure, environment, economy, national morale, and or government functions. Compared to disaster, in a catastrophe most or all of the community built structure is heavily impacted; most, if not all, of the everyday community functions are sharply and simultaneously interrupted and help from nearby communities cannot be provided.
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UK: an event leading to substantial losses, such as an explosion, hurricane or earthquake.
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“Catastrophe is a statistical term that refers to a single event or a series of closely related events that causes property losses of more than a certain amount, currently $25 million. Examples of catastrophes are World Trade Center terrorist attack and Hurricane Katrina. The probability of a catastrophe is known as the catastrophe factor. It is based on the total number of catastrophes in a given geographic area over a 40-year period. Insurance companies have several methods to financepotential catastrophes: catastrophe bonds, catastrophe deductible, and catastrophe reinsurance. Each is discussed below.
Catastrophe Bond

Also known as “”cat”” bonds and “”event-linked securities,”” these bonds are issued by a “”sponsor”” (usually an insurance or reinsurance company) in order to transfer some or all of the risk of a catastrophic loss. The purchaser of the catastrophe bonds receives regular interest payments for the term of the bond and the principal when the bond matures. However, a catastrophic event occurs, the insurance company uses the bond principal to pay losses and the bondholder receives nothing. Because of the relatively high potential for loss of principal, these bonds often pay a high rate of interest.

Catastrophe Deductible

Property owners in areas with a high probability of catastrophes often have a higher deductible for catastrophic events. For example, a homeowner in an area susceptible to hurricanes may have a $500 deductible for most insured events but a $10,000 deductible for hurricanes. The catastrophe deductible allows insurance companies to write more insurance in these areas.

Catastrophe Reinsurance

This reinsurance is designed to absorb the large losses caused by hurricanes, earthquakes, and terrorist attacks. Losses are spread among thousands of insurers that operate around the globe.”
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US: Event which causes a loss of extraordinary magnitude, such as a hurricane or tornado.
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MEDICAL,USA: Single incident or many related incidents that cause property loss to insureds.
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UK: The possibility of exceptionally heavy loss due to an occurrence, often of short duration, e.g. Hurricane Betsey. Most occurrences are natural disasters, but certain ‘catastrophic events, e.g. downfall of Barings Bank, have been man-made. See CATASTROPHE BONDS; CATASTROPHE EXCESS OF LOSS.

Form added to commercial property insurance policy that indicates the causes of loss that are covered. There are four causes-of-loss forms: basic, broad, special, and earthquake.

Professional who has attained a high degree of technical competency in property and liability insurance and has passed ten professional examinations administered by the American Institute for Property and Liability Underwriters.

Allows auto insureds the choice of remaining under the tort system or choosing no-fault at a reduced premium.

Person who settles claims: an agent, company adjustor, independent adjustor, adjustment bureau, or public adjustor.

A form of reinsurance under which the date of the claim report is deemed to be the date of the loss event. Claims reported during the term of the reinsurance agreement are therefore covered, regardless of when they occurred. A claims-made agreement is said to “cut off the tail” on liability business by not covering claims reported after the term of the reinsurance agreement—unless extended by special agreement.