Business Insurance Tips

ACCOUNTS RECEIVABLE
Provides coverage for accounts which are uncollectable because of an insured loss to your records. ERIE’s payment will include expenses to reconstruct records, interest on temporary loans and extra collection expenses.

ACTUAL CASH VALUE
Loss settlement is based on the replacement cost of an item at the time of the loss, less depreciation.

ADVERTISING INJURY LIABILITY
Provides coverage for your liability arising from personal injury, violation of the right of privacy, infringement of copyright, title or slogan occurring as a result of your advertising activities.

AGGREGATE LIMIT OF LIABILITY
The maximum amount of insurance ERIE will pay for a series of losses in a given year.

AGREED VALUE
This endorsement suspends and replaces the coinsurance clause if the insured carries a limit of insurance equal to or greater than the agreed value. The replacement requirement is an agreement to cover any loss in the same proportion as the limit bears to the stated agreed value. For example, if the agreed value of an item is $250,000 and the limit is $250,000, then a loss is covered at 100%.

AUDIT
An annual examination of your financial books and records as they relate to this insurance to determine proper premium for the exposures.

AUTOMATIC ANNUAL ADJUSTMENT
To help assure you of an adequate amount of insurance for your buildings, ERIE will make an automatic annual adjustment to your building amount to reflect change in construction costs.

BAILEE’S CUSTOMER INSURANCE
Inland marine coverage that protects you from claims by your customers for damage to or destruction of customer property in the care, custody, or control from a peril insured against.

BASIC CAUSE OF LOSS
This coverage protects your building(s) and personal property or contents from loss caused by basic perils subject to certain exclusions. The basic perils include fire, lightning, explosion, windstorm or hail, smoke, aircraft and vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.

BEST’S RATING
A rating system that indicates the operating condition of insurance companies developed and published annually by the A.M. Best Company.

BLANKET CONTRACTUAL LIABILITY
Protects you for liability assumed under “insured contracts” relating to your business whether they be oral or written, expressed or implied.

BLANKET COVERAGE
This coverage insures all property at a single amount. This eliminates having individual limits for each separate building or location.

BODILY INJURY LIABILITY
Provides coverage for your liability arising from physical harm, sickness, disease or death sustained by others. It includes care and loss of services and death at any time resulting from bodily injury.

BOILER AND MACHINERY COVERAGE
Provides coverage for claims arising from the operation of boilers and machinery. May cover loss suffered by the boilers and machinery or include damage done to other property and business interruption losses.

BRAND AND LABEL CLAUSE
This endorsement will reimburse you for costs when damage occurs to your property and it must be stamped as salvage or voided, or when your labels must be removed from the property items due to damage.

BROAD CAUSE OF LOSS
This coverage protects your building(s) and personal property or contents from loss caused by the broad form perils subject to certain exclusions. The broad form perils include fire, lightning, explosion, windstorm or hail, smoke, aircraft and vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action, breakage of glass, falling objects, weight of snow, ice, or sleet, water damage, and collapse.

BUILDERS’ RISK
This coverage insures the value of a building which is in the process of being built. The structure, materials, equipment and supplies kept within 100 feet are all covered under this policy. This coverage will be written on a comprehensive perils basis. Coverage limits are determined by the estimated completed value of the insured building.

BUILDING ORDINANCE
Provides coverage for:

1. the value of the undamaged part of the building caused by enforcement of any ordinance or law regulating the construction or repair of buildings that require the demolition of parts of the undamaged building; or regulates the construction or repair of the building, etc.
2. the increased cost of construction to repair, replace, or construct the building caused by enforcement of any ordinance or law regulating the construction, use or repair of buildings.

   ACCOUNTS RECEIVABLE
   Provides coverage for accounts which are uncollectable because of an insured loss to your records. ERIE’s payment will include expenses to reconstruct records, interest on temporary loans and extra collection expenses.

   ACTUAL CASH VALUE
   Loss settlement is based on the replacement cost of an item at the time of the loss, less depreciation.

   ADVERTISING INJURY LIABILITY
   Provides coverage for your liability arising from personal injury, violation of the right of privacy, infringement of copyright, title or slogan occurring as a result of your advertising activities.

   AGGREGATE LIMIT OF LIABILITY
   The maximum amount of insurance ERIE will pay for a series of losses in a given year.

   AGREED VALUE
   This endorsement suspends and replaces the coinsurance clause if the insured carries a limit of insurance equal to or greater than the agreed value. The replacement requirement is an agreement to cover any loss in the same proportion as the limit bears to the stated agreed value. For example, if the agreed value of an item is $250,000 and the limit is $250,000, then a loss is covered at 100%.

   AUDIT
   An annual examination of your financial books and records as they relate to this insurance to determine proper premium for the exposures.

   AUTOMATIC ANNUAL ADJUSTMENT
   To help assure you of an adequate amount of insurance for your buildings, ERIE will make an automatic annual adjustment to your building amount to reflect change in construction costs.

   BAILEE’S CUSTOMER INSURANCE
   Inland marine coverage that protects you from claims by your customers for damage to or destruction of customer property in the care, custody, or control from a peril insured against.

   BASIC CAUSE OF LOSS
   This coverage protects your building(s) and personal property or contents from loss caused by basic perils subject to certain exclusions. The basic perils include fire, lightning, explosion, windstorm or hail, smoke, aircraft and vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.

   BEST’S RATING
   A rating system that indicates the operating condition of insurance companies developed and published annually by the A.M. Best Company.

   BLANKET CONTRACTUAL LIABILITY
   Protects you for liability assumed under “insured contracts” relating to your business whether they be oral or written, expressed or implied.

   BLANKET COVERAGE
   This coverage insures all property at a single amount. This eliminates having individual limits for each separate building or location.

   BODILY INJURY LIABILITY
   Provides coverage for your liability arising from physical harm, sickness, disease or death sustained by others. It includes care and loss of services and death at any time resulting from bodily injury.

   BOILER AND MACHINERY COVERAGE
   Provides coverage for claims arising from the operation of boilers and machinery. May cover loss suffered by the boilers and machinery or include damage done to other property and business interruption losses.

   BRAND AND LABEL CLAUSE
   This endorsement will reimburse you for costs when damage occurs to your property and it must be stamped as salvage or voided, or when your labels must be removed from the property items due to damage.

   BROAD CAUSE OF LOSS
   This coverage protects your building(s) and personal property or contents from loss caused by the broad form perils subject to certain exclusions. The broad form perils include fire, lightning, explosion, windstorm or hail, smoke, aircraft and vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action, breakage of glass, falling objects, weight of snow, ice, or sleet, water damage, and collapse.

   BUILDERS’ RISK
   This coverage insures the value of a building which is in the process of being built. The structure, materials, equipment and supplies kept within 100 feet are all covered under this policy. This coverage will be written on a comprehensive perils basis. Coverage limits are determined by the estimated completed value of the insured building.

   BUILDING ORDINANCE
   Provides coverage for:

   1. the value of the undamaged part of the building caused by enforcement of any ordinance or law regulating the construction or repair of buildings that require the demolition of parts of the undamaged building; or regulates the construction or repair of the building, etc.
   2. the increased cost of construction to repair, replace, or construct the building caused by enforcement of any ordinance or law regulating the construction, use or repair of buildings.