Types of Casualty Policies, Bonds, Related Terms

Supplemental Extended Reporting Period

an optional reporting period of unlimited duration that will cover claims arising from occurrences that took place after the retroactive date and before the end of the policy period, subject to the policy aggregate limit for the entire term.

Fidelity bonds

are purchased by employers and may be written for individual named employees, on a named schedule basis where one bond is issued for several employees listed by name, or position schedule where several positions are listed and whoever is occupying a scheduled position is covered.

premises liability exposure

exists when there is use of the premises. relates to activities in addition to use . .

fidelity bond

is sometimes called an honesty bond and pays if someone has been dishonest.

commercial crime coverage

A special limit of $5,000 per occurrence applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings

Operations liability exposure

Completed operations liability refers to liability for work already performed or completed

The bond penalty.

If the specific obligation guaranteed by the bond is not fulfilled, a sum of money, known as a penalty, becomes payable as damages.

coverage extension that applies to employees temporarily outside the coverage territory

The coverage includes a for up to 90 days.

products and completed operations hazard includes

The injuries or damage that occur after the insured has completed its job and left the site, or relinquished control of a product it manufactured or sold. There is no time limit on the injury or damage.

surety bond

a guarantee someone will perform as promised and pays if they do not.

occurrence policy

coverage is activated when a covered event occurs during the policy period. Coverage for the insured is found under the policy in force at the time the event occurred.

Errors and omissions

coverage protects insurance agents and brokers from financial losses they may suffer if an insured sues to recover his or her financial loss due to the agent giving incorrect advice, not placing requested coverage, or not informing the insured of important issues. States vary on how they will interpret mistakes made by agents and brokers. The coverage provided is very similar to professional liability.

Personal and advertising injury liabilityB

damage to the character of the claimant.

Product liability

exposure is the possibility that the public might be injured by the product

Coverage is usually written on a claims-made basis.

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