understanding insurance speak

Understanding “insurance speak”TruShield Insurance for Small Business

Depreciation. Indemnity. Schedule of loss. You may have heard these terms before, but what do they actually mean? We’ve put together this glossary to help you get a better understanding of “insurance speak”.

Insurance terms explained

If your customers default on their payments, accounts receivable insurance can help protect your profit margin and free up your cash flow.

Accounts receivable insurance

An “Act of God” is when an event arises out of natural causes, with no human intervention. These are events that can’t be prevented.

Act of God

A representative of the insurance company who determines the extent of your business’ liability for loss when you submit a claim.

Adjuster

Reimburses you for any lost net profits and other expenses required to help you carry on with your business until you’re able to get it up and running again.

Business interruption insurance

The portion of an insured loss that you have to pay out-of-pocket before your insurance company covers the remaining expenses.

Deductible

This refers to the decrease in value of any type of property over a period of time resulting from use, wear and tear, or obsolescence.

Depreciation

Compensation for sustained loss or damage.

Indemnity

 Covers injuries to customers, suppliers, employees or visitors to your property. It will also cover you if you or your staff are conducting business off-site and cause injury to a third party or their property.

General liability

Insurance protection against loss due to the inability to use property due to damage or destruction.

Loss of use

Cause of loss. For example: fire, flooding, collision etc.

Peril

Protects you if a product you make or sell turns out to be defective or if there are inaccuracies in the assembly instructions or warnings.

Product liability

If one of your customers claims that you failed to deliver on what was outlined in a contract or that you mismanaged a project, professional liability insurance will cover legal costs and expenses. It would also apply to medical professionals being sued for malpractice.

Professional liability

When the cost of damage repair exceeds the value of your property.

Total loss

Other insurance questions?

Visit www.trushieldinsurance.ca/FAQs

Please note that the information provided here is for educational purposes only and shouldn’t be used to determine your coverage decisions. Be sure to speak to a TruShield Insurance agent to find out how to best protect your business.