Insurance, in plain English.

Actual Cash Value

Actual cash value (ACV) pays you what your damaged property was worth at the time of loss, after subtracting for age and wear.

Additional Insured

An additional insured is another person or business added to your policy so they're also protected under your coverage for certain situations.

Admitted Carrier

An admitted carrier is an insurance company licensed and regulated by the Utah Insurance Department.

Aggregate Limit

An aggregate limit is the total amount your insurer will pay for all covered claims during a policy period, usually one year.

Binder

A binder is temporary proof that your coverage is in effect while the full policy is being finalized and issued.

Business Interruption

Business interruption coverage helps replace lost income when a covered event, like a fire, forces your business to temporarily close.

Business Owner's Policy

A business owner's policy (BOP) bundles general liability with coverage for your building, equipment, and inventory into one convenient package, usually at a lower combined price.

Certificate of Insurance (COI)

A certificate of insurance (COI) is a one-page document that proves you have an active policy and shows your coverage types and limits.

Claim

A claim is a formal request you file with your insurer to be paid for a covered loss, like an accident, theft, or damage.

Commercial Auto

Commercial auto covers vehicles your business owns and uses for work — trucks, vans, or cars — for accidents, injuries, and damage.

Cyber

Cyber insurance helps your business respond to data breaches, ransomware, and other digital attacks.

Deductible

A deductible is the amount you pay out of pocket on a covered claim before your insurance starts paying.

Effective Date

The effective date is the day your coverage officially begins.

Endorsement

An endorsement is a written change to your policy that adds, removes, or adjusts coverage.

Errors & Omissions (E&O)

Errors and omissions (E&O) insurance protects professionals when a client claims their work, advice, or service caused a financial loss.

Exclusion

An exclusion is something your policy specifically does not cover, spelled out in the policy language.

General Liability

General liability covers the everyday risks of running a business — like a customer slipping in your shop, or your work accidentally damaging someone else's property.

Hired and Non-Owned Auto

Hired and non-owned auto (HNOA) covers liability when employees drive vehicles your business doesn't own for work — like rentals or their own cars.

Lapse

A lapse is a gap in your coverage, usually because a premium wasn't paid or a policy wasn't renewed in time.

Liability

Liability is your legal responsibility when you cause injury to someone or damage to their property.

Loss of Use / Additional Living Expenses

Loss of use, also called additional living expenses, helps pay your extra costs if a covered event makes your home unlivable.

Named Insured

The named insured is the person or business officially listed on the policy as the policyholder.

NPN (National Producer Number)

A National Producer Number (NPN) is a unique ID assigned to every licensed insurance producer and agency in the U.S.

Per-Occurrence Limit

A per-occurrence limit is the most your insurer will pay for any single claim or event.

Policy Limit

A policy limit is the most your insurer will pay for a covered loss.

Premium

Your premium is the amount you pay for your insurance policy, usually monthly, every six months, or annually.

Producer

A producer is a licensed insurance professional — an agent or broker — authorized to sell and service policies and advise on coverage.

Professional Liability

Professional liability protects you when a client claims your advice, service, or work caused them financial harm — even if you did nothing wrong.

Proof of Insurance

Proof of insurance is documentation showing you carry active coverage — like an auto ID card, a declarations page, or a certificate of insurance.

Renewal

A renewal is when your policy continues for another term, often a year, usually with updated pricing and sometimes adjusted terms.

Replacement Cost

Replacement cost coverage pays to repair or replace damaged property with new items of similar kind and quality, without subtracting for age or wear.

Rider

A rider is an add-on to your policy that provides extra coverage for something a standard policy may limit, like jewelry, a home office, or special equipment.

Surety Bond

A surety bond is a three-party guarantee that you'll fulfill an obligation, like completing a job or following regulations.

Surplus Lines

Surplus lines (or non-admitted) insurance comes from carriers that aren't licensed in Utah but can legally cover risks that standard insurers won't.

Underwriting

Underwriting is how an insurance carrier evaluates your risk to decide whether to offer coverage and at what price.

Waiver of Subrogation

A waiver of subrogation is a policy provision in which your insurer agrees not to seek reimbursement from a third party after paying a claim.

Workers' Comp Experience Mod

The experience modification factor (experience mod) is a number that adjusts your workers' comp premium based on your past claims compared to similar businesses.

Workers' Compensation

Workers' compensation pays for medical bills and lost wages when an employee is hurt or gets sick on the job.