Backdating:

Making the effective date of a policy earlier than the date of application. Backdating is often used to make the age of the applicant lower than it actually was at the time of application so that he/she can get a lower premium. State laws often set limits to this.

Bailee Coverage:

Coverage on property left in the care of the insured for storage, repair or servicing.

Balance Sheet: 

An accounting term referring to a listing of a company's assets, liabilities and surplus as of a specific date.

Basic Cause of Loss Form:

Property coverage for named perils: Fire, Lightening, Explosion, Smoke, Windstorm, Hail, Riot, Civil Commotion, Aircraft, Vehicles, Vandalism, Sprinkler Leakage, Sinkhole Collapse and Volcanic Action.

Basic Limits:

The minimum limits of liability that can be carried by an insured.

Beneficiary:

The designated person set to receive the death benefit if the insured should die.

Best's Rating:

A rating system by A.M. Best Company giving the financial condition of insurance companies.

Binder:

A temporary insurance policy that expires at the end of a specific time period or when a permanent policy is written. A binder is given to an applicant for insurance during the time it takes the an insurance company to complete the policy paperwork.

Bodily Injury by Accident Limit:

The most an insurer will pay under Part Two of a Workers' Compensation Policy for claims arising out of any one accident, regardless of how many employee claims arise out of the accident.

Bodily Injury by Disease, Each Employee:

The most an insurer will pay under Part Two of a Workers' Compensation Policy for damages due to bodily injury by disease to any one employee.

Bodily Injury by Disease-Policy Limit:

The most an insurer will pay under Part Two of a Workers' Compensation Policy employee bodily injury by disease claims during the policy period regardless of the number of employees who make such claims.

Bodily Injury Liability Limit:

The insured is legally liable for damages due to bodily injury, sickness, or disease, including resulting death

Boiler & Machinery Insurance:

Coverage for loss caused by mechanical or electrical equipment breakdown, including damage to the equipment.

Bond:

A written agreement in which one party, the surety, guarantees the performance or honesty of a second party, the principal (obligor), to the third party (obligee) to whom the performance or debt is owed.

Brands and Labels Endorsement:

Property insurance coverage that allows the insured to remove labels from damaged goods or mark the items as 'salvage,' provided the goods are not damaged in the process.

Broad Causes of Loss Form:

Property coverage for the named perils: Fire, Lightening, Explosion, Smoke, Windstorm, Hail, Riot, Civil Commotion, Aircraft, Vehicles, Vandalism, Sprinkler Leakage, Sinkhole Collapse, Volcanic Action, Breakage of Building Glass, Falling Objects, Weight of Snow, Ice or Sleet, Water Damage (in the form of leakage from appliances) and Collapse from Specified Causes.

Broker:

Insurance salesperson that searches the marketplace in the interest of clients, not insurance companies.

Broker-Agent:

Independent insurance salesperson who represents particular insurers but also might function as a broker by searching the entire insurance market to place an applicant's coverage to maximize protection and minimize cost. This person is licensed as an agent and a broker.

Building Ordinance Coverage:

Covers against loss caused by enforcement or ordinances or laws regulating construction and repair of damaged buildings.

Burglary:

Theft of property by forcible entry, which is evidenced by visible signs, in a premises, by a person.

Business Auto Policy:

Auto Policy for businesses that includes auto liability and auto physical damage coverage's.

Business Income Coverage:

Insurance covering loss of income by a business when operations are interrupted due to property loss that is a covered cause of loss.

Business Interruption Coverage:

See Business Income Coverage.

Business Net Retention:

This item represents the percentage of a company's gross writings that are retained for its own account. Gross writings are the sum of direct writings and assumed writings. This measure excludes affiliated writings.

Business Owners Policy (BOP):

A policy that combines property and liability coverage's for special types of small businesses.