Logo

Insurance Terms Glossary

Insurance language is complicated. To help guide you through your claim, our public adjusters have compiled a handy list of definitions for terms you may run across in the process.

A

  • Accident
    An unexpected event, often with harmful consequences. (See also occurrence.)
  • Accident - Boiler and Machinery
    Various definitions as spelled out in the four object definition forms of the Boiler & Machinery Policy.
  • Accounts Receivables
    The records of money owed to an individual or organization which, if lost, stolen, or destroyed, could prevent their collection; The value of these records can be insured under Inland Marine Accounts Receivable insurance.
  • Actual Cash Value
    The value of property immediately before loss taking into account its "used" condition, wear & tear, etc.; usually considered the "depreciated value, although "market value" and obsolescence may sometimes also be taken into account.
  • Actual Loss Sustained Business Interruption Insurance
    Form of coverage used in Boiler & Machinery Insurance that pays the amount of business income loss actually incurred following an insurance property loss. (In contrast to "Valued" coverage.)
  • ACV
    The commonly used abbreviation for Actual Cash Value.
  • Agreed Amount Clause
    Former name of Agreed Value Option. (see below for definition of Agreed Value Option).
  • Agreed Value Option
    An optional clause for Property & Business Income policies that waives the Coinsurance Clause on a year by year basis based on the filling, and accepting by the insurer, of a statement of actual values on which the amount of insurance for the coming year is based; Failing to file a new statement within the required time results in reapplication of the Coinsurance clause until a new statement is filed and approved. (See Coinsurance.)
  • All-Risks Insurance
    Former name of coverage that applies against all risks of loss not specifically excluded; The term "All-Risks" is no longer used as it seems to suggest (in the minds of insurers) that more coverage is being given than is intended.
  • Assessment Liability