Thimble Insurance Dictionary & Glossary

Understanding your Insurance policy just got easier.

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ACORD Certificate

ACORD (Association for Cooperative Operations Research and Development) is the global standards-setting body for the insurance industry. In particular, ACORD develops form templates which have become industry standards. Thimble issues all policyholders and Additional Insureds with an ACORD 25 certificate. The ACORD 25 form is a vehicle to convey information and does not amend terms or conditions of your policy.

Actual Cash Value

Actual Cash Value (ACV) is a dollar amount determined by an insurance provider for lost, damaged or stolen property. ACV is determined by starting with replacement cost and adjusting for depreciation to arrive at the estimated value a given piece of property could be sold for in it’s most recent (but not brand new) condition.


Add-Ons are activities that are generally not included under your general liability policy but can be added to your policy for an additional premium. Add-Ons for policies offered through Thimble are available for purchase on the policy builder page. You may add as many add-ons as you like. A full list of acceptable add-ons can be found here.

Additional Insureds

An additional insured is a person or organization who is not a named insured and not a crew member but is a person or organization who has a relationship with the named insured, and as a result could be held liable for the named insured’s conduct or operations. Listing someone as an additional insured allows them to rely on your insurance to cover them, as long as the claims against them arise out of the actions or operations of the named insured.

Advertising Injury

Advertising injury is a coverage under a general liability policy that provides protection against claims by a third party alleging that advertising you put out caused injury to them—usually in the form of improper use of another’s advertising ideas or copywriting infringement in your advertisement.

Aggregate Limit

The aggregate limit is the absolute maximum amount an insurance provider will reimburse a policyholder over a policy term. The aggregate limit can represent multiple claims during a policy term.


In the insurance world, an appraisal is a process used to resolve conflicts between the insurance provider and a policyholder over the replacement value of damaged, destroyed or lost items or property. Appraisals can also be used to determine accurate value of items prior to placing coverage.


Arbitration is the process of settling a dispute between two parties, using a neutral third party known as an arbitrator. In insurance terms, arbitration can take place when a policyholder and insurance provider have a dispute regarding a claim. Arbitration is a more expedient and less expensive solution to handling disputes than filing a lawsuit.

Auto liability insurance

Commercial auto liability insurance protects you against the risks associated with vehicles your business owns and operates.



An insurance binder is a temporary insurance contract used to provide coverage to a policyholder until a formal policy can be issued. Binders explicitly state who the policyholder is and the duration and scope of coverage.

Bodily Injury

In liability insurance, Bodily Injury (BI) refers to any bodily harm (up to and including death) caused to a third-party by the insured.

Bodily Injury Liability Coverage

Bodily injury liability coverage is a coverage under a general liability policy that provides protection against claims by a third party alleging injury to the body, sickness or disease, or death resulting from any of these. For example, you leave a toolbox on the floor of your client’s property and they trip over it and injure themselves. When they make a claim against you for bodily injury, this coverage would help cover those costs if you are found liable.

Business Equipment Protection

Business Equipment Protection (also known as inland marine insurance) is a type of first-party insurance that covers business equipment that you own, rent or borrow while it is away from your premises.

Business Interruption Insurance

Business interruption insurance (also known as business income insurance) covers lost business income in the event that business operations are temporarily halted. For example, if a fire damages your office, business interruption insurance can cover a portion of your lost income while your office is being restored.

Business Liability Insurance

Also known as general liability insurance, business liability insurance covers a business against claims of bodily injury, third-party property damage and personal or advertising injury. Business liability insurance is one of the most essential forms of business insurance and is often the first type of policy a new business will purchase.

Business Owners Policy

A Business Owners’ Policy (BOP) is a package of insurance coverages designed for business owners that can include commercial property insurance, general liability insurance, and others.

Business Personal Property

Business Personal Property (BPP) refers to every movable object owned by a business. This could include tools, equipment, computers, furniture and other property.


Care, Custody, or Control (CCC) Exclusion

Care, custody or control is a short-hand way to describe an exclusion typically found in a general liability policy. It excludes coverage for damage to personal property that is in your care, custody or control. 

Some policies, including a general liability policy offered through Thimble, have an option to remove this exclusion so that there is limited coverage for damage to personal property in your care, custody, or control.

Certificate of Insurance (COI)

certificate of insurance (COI) is a physical or electronic document that provides proof to anyone you work with that you have a valid, active insurance policy. Most certificates of insurance are issued by a company called ACORD (Association for Cooperative Operations Research and Development), which develops form templates that have become an industry standard.


An insurance claim is a request by a policy holder to an insurance company to pay for something covered by their insurance policy. After a policyholder files a claim, the insurance company either approves or denies it. If the insurance company approves the claim, they will issue a benefit or payment to either the policy holder or another party involved in the claim.


A claimant is an individual or business entity who files a claim with an insurance company. An individual does not have to be a policy holder to be a claimant. They can be an additional insured or a third party involved in the incident that’s covered under the policy holder’s insurance policy.

Claims Made Policy

claims made policy provides coverage for claims that are made against the insured while the policy is in effect, even though the event may have occurred before the policy was in force. Any claims made after the end of the policy period would not be covered. This type of policy differs from an occurrence policy.


A common aspect of health insurance policies, coinsurance is a percentage that insureds must pay for covered expenses after applying a deductible. For example, if a policy holder has a medical bill of $8000, a $500 deductible and an 80/20 coinsurance plan, they would pay $500 (the deductible amount) plus $1500 (20% of the remaining medical costs). The insurance provider would cover the remaining $6000 of the bill.

Commercial Auto Insurance

Commercial auto insurance is a policy that covers liability and physical damage for vehicles that are used as part of business operations and aren’t covered by private auto insurance. Commercial auto policies can provide liability coverage for third party property damage and bodily injury as well as collision coverage.  

Commercial General Liability

See definition for General Liability Insurance.

Commercial Property Insurance

Designed for small businesses that own an office or retail store, commercial property insurance covers a business’s property and items on the premises from accidental loss, damage or theft.

Coverage Territory

Coverage territory is the geographic area that’s covered by your insurance policy.

For general liability insurance, coverage usually applies to the United States (including its territories and possessions), Puerto Rico, and Canada. So even if you buy a policy within a certain ZIP code, you are still covered if you perform work in another state.

Crew Member

crew member is someone engaged in a cooperative effort with you and who is performing job responsibilities covered under your policy. With a policy through Thimble, you can add coverage for crew members so that they have the same coverage as you which means their actions are covered under your policy. This is different from an Additional Insured since Additional Insureds are generally not covered for their actions.

Cyber insurance

Cyber insurance, also called cyber security insurance, is designed to protect your business from the financial consequences of viruses, malware, security breaches, ransomware or other cybercrimes.



In civil court, damages is a monetary sum awarded by a judge to a plaintiff, often for injury or other suffering. For example, a defendant might have to pay damages to a plaintiff in the event of negligence which caused the plaintiff financial loss.


A deductible is a predetermined amount (either a lump sum or a percentage) that a policyholder must pay out-of-pocket when making an insurance claim. Deductibles often have an inverse relationship with premium costs—the higher the deductible, the lower the premium and visa versa. Deductibles are most commonly applied to damages or injuries sustained by the policy holder or their property.

Defense Costs


Employment Practices Liability Insurance

Employment Practices Liability Insurance (EPLI) is a type of insurance coverage that protects businesses from liability for wrongful acts that occur during the employment process, like discrimination, sexual harrassment, failure to promote or wrongful termination. Should an employee file suit, EPLI coverage would cover the employer.


An endorsement (also called a rider) is an amendment to an existing insurance policy that adds, deletes, excludes or changes insurance coverage. Endorsements can be added to policies when they’re first issued, in the middle of the term, or when a policy is renewed. Endorsements are often accompanied by increases or decreases in premium amounts.

Equipment breakdown coverage

Covers loss of business income due to interruption of operations as a result of direct physical loss or damage; available as an additional coverage to BOP.

Errors and Omissions Insurance

Errors and omissions insurance, also known as professional liability insurance, provides protection against claims alleging your advice or professional services resulted in a third party suffering an economic or financial loss. It also provides you with legal defense, even if the claims are false, fraudulent or frivolous.

Event Insurance

Event insurance provides general liability for short-term events and includes coverage for third-party property damage and bodily injury. It can protect against claims made by event attendees as well as the venue in which the event is held.

Exposure Period

The policy arranged by Thimble offers products and completed operations coverage beyond the policy period via an Exposure Period. Protection for covered claims arising from your completed work is provided as long as the occurrence takes place before the Exposure Period ends. The work must have been completed during the Policy Period for coverage to apply. The Exposure Period is listed on your Policy Declarations. One year from inception is provided at no additional premium.


Extensions give you the price you would have paid if the policy was purchased for the extended length, and are an alternative to purchasing a second policy.


General Liability Insurance

General liability insurance, also referred to as commercial general liability insurance or business liability insurance, is one of the most fundamental insurance coverages a business can purchase. It protects a business against the financial consequences resulting from claims made by third parties alleging bodily injury, property damage or personal and advertising injury. It also provides investigation of the claims and a legal defense against such claims, even if they are false, fraudulent or frivolous.


Hired & non-owned auto coverage

Liability coverage for personal autos or rental vehicles that your business uses for work but doesn’t own; available as an additional coverage to BOP.

Host Liquor Liability Insurance

Host liquor liability insurance provides coverage for property damage or bodily injury resulting from the serving or consumption of alcoholic beverages.


Insurance Adjuster

An insurance adjuster (or claims adjuster) is an insurance professional who investigates claims and determines how much an insurance provider should pay for damages to a party making the claim.

Insurance Agent

An insurance agent is a professional who works on behalf of an insurance company, selling insurance policies directly to consumers for commission. Insurance agents can work for a single insurer (captive agent) or represent multiple insurers (independent insurance agent). Unlike insurance brokers, who represent consumers, insurance agents represent the insurance company whose policy they’re selling.

Insurance Broker

Unlike insurance agents, insurance brokers represent the needs and best interests of consumers, helping them to secure the best insurance policy to meet their needs.

Insurance Services Office (ISO)

ISO is shorthand term for the Insurance Services Office, Inc., which is a company that provides claims data and analytics, creates rating and standardized policy forms as well as files and obtains approval for the rating and policy forms with state regulators on behalf of an insurer who has purchased their services.


Loss Payee

In insurance, the loss payee is the party that gets paid from a loss claim. A loss payee could be the insured or a third-party. 


Medical Expenses

Medical expenses are expenses incurred as a result of bodily injury. Medical expense coverage is one of the items covered under a section of the general liability policy, regardless of fault, if the accident occurs:

  • On premises you own or rent;
  • On ways next to premises you own or rent; or
  • Because of your operation.

The stated limit included under the medical expense section of your general liability insurance policy covers immediate medical expenses resulting from bodily injury to a third party. This sub-limit applies separately for each person but does not apply to the named insured or their crew members.


Named Insured

named insured is a specifically named individual or firm (otherwise known as the policyholder) with whom an insurance contract is made, and whose interests are protected under the policy. In many cases, more than one person or entity may be designated as named insureds.

Named Perils

In insurance policies, a named peril is a specific, named event that is either covered or not covered by the insurance policy. For example, in a commercial property insurance policy, fire, earthquake and flooding might all be “named perils.”


In insurance terms, negligence means that an individual failed to act in what would be considered a reasonable way for a given situation, resulting in damages or bodily injury. Depending on the insurance policy, if a policyholder, named insured, additional insured, or third party is determined to be negligent or partially negligent, they may be denied benefits or have their payout reduced.


Occurrence Policy

Under an occurrence policy, you are covered for injury or damage that occurs during the policy period, even if a claim is made after the policy period has ended. This type of policy differs from a claims made policy.


Per Occurrence Limit

In insurance, the per occurrence limit is the maximum amount an insurance provider will reimburse a policyholder for claims resulting from a single occurrence.

Personal and Advertising Injury

Personal and advertising injury refers to claims made in the event of non-physical injury to a third-party. In general liability insurance, personal and advertising injury liability can protect policyholders against claims of slander, libel, or copyright infringement.

Personal Injury

Personal injury is a coverage under a general liability policy that provides protection against claims by a third party alleging harm (including consequential bodily injury) such as libel, slander, invasion of privacy, false arrest, detention, imprisonment, malicious prosecution or wrongful eviction.

Policy Period

Your policy period is the amount of time that you designate for your policy to be active. Your coverage can be for a period as short as an hour, all the way up to a year.

Prior Acts Coverage

Prior acts coverage is a component of some insurance policies that allows for coverage of incidents that occured before the insurance policy start date.

Product Liability Insurance

Product liability protects makers against the costly consequences of injury or damage arising after the sale of a product, for example, jewelry, candles, or soap; available as part of general liability insurance coverage.

Products-Completed Operations Hazard

Products-completed operations hazard is a coverage typically provided under a general liability insurance policy.  It includes coverage for liability arising out of products or services that have already been provided or completed by you once such products have left your control or you have finished providing such services.

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, provides protection if your advice or professional services result in economic or financial loss to a third party. If you make an error by providing professional services or advice that causes financial loss to your client, professional liability insurance covers the financial consequences resulting from your failure to provide those services properly. It also provides you a legal defense, even if the claims are false, fraudulent or frivolous.

Proof of Loss

Proof of loss is a document used in the claims filing process that provides an insurer with detailed information about an incident that resulted in the loss or damage of property. 

Property Damage

In insurance terms, property damage refers to the partial or complete destruction of personal property, whether that damage is faultless or caused by negligence. In general liability insurance, property damage refers to damage caused to the property of a third-party by the policyholder or a policyholders’ additional insureds.

Property Damage Liability Coverage

General liability insurance includes coverage for property damage – either to another person’s or business’ property. This can include damage to belongings or physical dwelling/business spaces.

Property Insurance

Property insurance is a blanket term that refers to any type of insurance policy that covers private or commercial property from damages or from liability for damages or injuries to a third-party. Commercial property insurance and homeowners’ insurance are two examples of property insurance.



A quote from an insurance provider is an estimate of the premium an individual would pay for insurance coverage. It’s important to note that a quote is not an actual offer for an insurance policy, and can be subject to change pending additional information from the applicant. Quotes are based on the information provided by the individual or entity requesting the quote and the average cost of coverage for similar individuals or entities.


Replacement Value

Replacement value is one method insurance providers use to determine how much to reimburse a policyholder for lost, damaged or stolen property. Replacement value is equal to how much it would cost to purchase a brand-new replacement. Unlike Actual Cash Value, replacement value does not factor depreciation into the valuation process.

Retroactive Date

In insurance policies, the retroactive date defines how far back in time a policy will cover an event that leads to a claim of loss.


Sole Proprietorship

A sole proprietorship is an unincorporated business with a single owner. The owner of a sole proprietorship pays A sole proprietorship is an unincorporated business with a single owner. The owner of a sole proprietorship pays personal income tax on the profits they make through their business. Self-employed individuals who collect 100% of their business profits are considered sole proprietors. The designation is informal and does not require filing paperwork to establish.

Stop Gap Coverage

In states with monopolistic workers’ compensation funds, stop gap coverage provides employers with employers’ liability coverage. Employers’ liability is typically included in workers’ compensation policies issued by private insurance carriers, but is not included in state-run workers’ compensation funds.

Strict Liability

For manufacturers, retailers, wholesalers or distributors, strict liability is the responsibility on the part of business owners for damages caused by their products. Under strict liability, business are responsible for damages whether or not they were negligent or at fault for injuries or other damages sustained by a plaintiff.


Subrogation refers to an insurance carrier’s legal right to pursue a third party that caused the loss or damage an insured suffered, or for which the insured was found liable, and for which the insurance company paid under its policy. Subrogation allows the insurance carrier to seek repayment for the claim amount that they paid to the insured, or on behalf of the insured, for the loss.


Tail Coverage

TaTail Coverage is an extension to a claims-made insurance policy that provides coverage for incidents that occur during the coverage period, but did not result in a claim until after the coverage period had lapsed.

Third Party

A third party is an individual or entity involved in an insurance claim who is neither the policy holder, named insured, additional insured or the insurance provider. In insurance claims involving a third party, the insurance provider is the first party and the policyholder, named insured or additional insured, is the second party. An example of a third party is a customer who slips and falls on a business’s property and sustains injuries that require medical care.


Waiver of Subrogation

waiver of subrogation is a contractual provision in which the insured waives the right of the insurer to seek compensation for losses from an at-fault third party. These waivers usually must be made in writing prior to the time any loss takes place in order for them to be effective.

Workers’ Compensation

Workers’ compensation (or workers’ comp) is a type of insurance that provides benefits to employees who sustain an injury or illness while performing their work. Workers’ comp can cover medical costs, ongoing care, lost wages and death benefits for employees and their beneficiaries. The vast majority of employers in the United States are legally required to have a workers’ compensation policy.