Material which promotes the product, service or business of the Named Insured or others.

Advertising Injury

Injury arising out of the insured's promotion of its goods and services including: libel, slander, invasion of privacy, copyright infringement, and misappropriation of advertising ideas.

Annual Aggregate

Indicates the amount of coverage that the insured has under the contract for a year, no matter how many separate accidents might occur.

Bodily Injury

Physical injury, sickness, disease or death of any person, including any mental anguish or emotional distress resulting therefrom.

Breach of Duty

Failure to perform some promised act or obligation, but fails to live up to that standard.


Any fact, event or situation that could reasonably be the basis for a claim.


A demand received by any Insured for money or services including the service of suit or institution of arbitration proceedings.

Claims-Made Policy

Policy that covers claims first made (reported or filed) during the year the policy is in force for any incidents that occur that year or during any previous period during which the insured was covered under a "claims-made" contract.


A monetary judgment, award or settlement of compensatory damages, including any pre-judgment and/or post-judgment interest thereon.


Portion of covered loss that is not paid by the insurer.

Disciplinary Hearing

A hearing or professional review conducted by any state or federal administrative agency, licensing or regulatory authority responsible for regulating your professional conduct.

Extended Reporting Period (ERP)

Also referred to as "tail" coverage. This feature extends the period in which a claim may be made for work done that was performed prior to the expiration date of coverage.


Deception or artifice used to cheat or intentionally mislead. This is closely related to misrepresentation and concealment.

General Liability Insurance

Coverage for an insured when negligent acts and/or omissions result in bodily injury and/or property damage on the premises of a business, when someone is injured as the result of using the product manufactured or distributed by a business, or when someone is injured in the general operation of a business.

Hostile Fire

One which becomes uncontrollable or breaks out from where it was intended to be.


The inability or lack of legal qualification or fitness to discharge the required duty.


Bodily injury, sickness, disease, mental or emotional distress sustained by a person, or death resulting from such injury.

Limits of Liability

The maximum amount of coverage agreed upon in the insurance contract that the company would pay in the event of a loss.


Failure to act within the legally required degree of care for others, resulting in harm to them.


An accident, including continuous or repeated exposure to substantially the same general harmful conditions, which involves one or more persons or entities, and which results in Bodily Injury or Property Damage to such persons or entities.

Occurrence Policy

A policy covering claims that arise out of damage or injury that took place during the policy period, regardless of when claims are made.

Personal Injury

Offenses that produce harm other than bodily injury including: false arrest, detention, imprisonment; malicious prosecution; wrongful eviction; slander; libel; and invasion of privacy.

Policy Period

Period of time between the inception date shown in the Declarations and the effective date of termination, expiration or cancellation of this Insurance and specifically excludes any Optional Extension Period or any prior policy period or renewal period.


The amount of money an insurer charges to provide the coverage described in the policy.

Prior Acts Coverage

Also referred to as a Retroactive date. This is a stipulated date usually shown on the Declarations Page of a claims-made policy. It means no claim is covered by the policy if it is based upon or arises from any wrongful act which occurred prior to the stipulated date.

Professional Services

Technical or unique functions performed by consultants whose occupation is the rendering of such services.

Tail Coverage

Optional protection that allows you to report claims after your policy has ended for alleged injuries that occurred while your policy was in force.

Temporary Employee

A natural person furnished or leased to the Named Insured to meet short term or project specific workloads and for whom the Named Insured has the right to direct and control the means of performance.

Tort Liability

Means liability that would be imposed by law in the absence of any contract or agreement.


The process of selecting risks for insurance and classifying them according to their degrees of insurability so that the appropriate rates may be assigned. The process also includes rejection of those risks that do not qualify.