General Liability - Industry Lingo

To make the right business purchases, you have to know the language. Here's a guide to liability lingo.

Adjuster
The person who is primarily responsible for determining the fate of a claim. An adjuster assesses damage and evaluates the value of a claim.

Commercial General Liability (CGL) Form
A basic liability policy that covers four forms of injury: bodily injury or property damage which results in actual physical damage or loss, personal injury, and advertising injury. Most companies will need to supplement their CGL with automobile insurance and workers compensation.

Deductible
The amount the insured must pay towards a claim before receiving any policy benefits. Deductibles can be calculated on a per-claim or aggregate basis.

Experience rating
An indication of your history of claims. Experience ratings better or worse than average will affect a firm's premiums.

Exposure Base
A measure of the size of a firm. The exposure base may be measured in terms of payroll, gross sales, or square footage.

Grace Period
The amount of time granted to a policy holder to adjust a policy to reflect the value of newly-purchased assets.

Premium
The amount of money a firm must pay to obtain insurance coverage.

Umbrella Insurance
An excess liability policy, providing additional coverage above and beyond that offered by primary policies.

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