Glossary of Insurance Terms – Insurance Terms Glossary

Contact us for a no obligation
insurance quote today!

Glossary of Insurance Terms 

This page provides a glossary of insurance terms and definitions that are commonly used in the insurance business. New terms will be added to the glossary over time.

The definitions in this glossary are developed by the Event Insurance Quote staff based on various insurance references. These definitions represent a common or general use of the term. Some words and/or phrases may be defined differently by other entities, or used in a context such that the definition shown may not be applicable.

Additional Insured – A person or organization not automatically included as an insured under an insurance
policy that is included or added as an insured under the policy at the request of the
named insured.

Bodily Injury – Bodily harm, sickness, or disease, including resulting death.

Certificate of Insurance (COI) – Document used to provide information on specific insurance coverage. The certificate
provides verification of the insurance and usually contains information on types and
limits of coverage, insurance company, policy number, named insured, and the
policies’ effective periods.

Deductible – An amount the insurer will deduct from the loss before paying up to its policy limits.

Host Liquor Liability Coverage – Liability for bodily injury (BI) or property damage (PD) arising out of the serving or
distribution of alcoholic beverages by a party not engaged in this activity as a business
enterprise. Host liquor liability exposures are insurable under standard general
liability policies.

Limit of Liability – The maximum amount for which an insurance company may be held liable under a
given policy.

Liquor Liability Coverage – Provides coverage and defense costs for an event holder who charges for alcohol and
is sued for bodily injury or property damage caused by intoxicated event guests.

Named Insured – Any person, firm, or organization, or any of its members specifically designated by
name as an insured(s) in an insurance policy, as distinguished from others that,
although unnamed, fall within the policy definition of an “insured.

Premises/Operations Liability – Liability for injury or damage arising out of the insured’s premises or out of the
insured’s business operations while such operations are in progress.

Products Completed Operation – One of the hazards ordinarily insured by a general liability policy. It encompasses
liability arising out of the insured’s products or business operations conducted away
from the insured’s premises once those operations have been completed or
abandoned.

Property Damage – Physical injury to tangible property including resulting loss of use and loss of use of
tangible property that has not been physically injured.

Terrorism Insurance – Insurance covering loss due to acts of terrorism. Unless endorsed to exclude loss due
to terrorism, commercial insurance policies issued in the United States (for example,
commercial property policies, commercial general liability (CGL) policies, and
commercial auto policies) generally provide terrorism insurance coverage.