Dictionary & Glossary
Understanding your insurance policy just got easier.
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.
An Additional Insured is a party added to a liability policy to extend coverage with regard to a specific job, activity, or location. The person or entity has a business relationship with the named insured that creates a risk of lawsuits against the named insured.
This is often required by a client, property owner, or bank as a means to protect their interest in the event that a covered claim or suit is brought against them for injury or damage caused by your negligence.
Certain higher-risk activities are not included under your regular General Liability policy, but are available as add-ons. These are available for purchase on the policy builder page, just below the “What’s Included” text. Simply tap to add, and swipe to make any required declarations. You may add as many add-ons as you like. A full list of acceptable add-ons can be found here.
Advertising injury includes offenses in connection with the insured’s advertising of its goods or services, such as libel, slander, invasion of privacy, and copyright infringement.
Bodily injury is the portion of the General Liability policy that covers claims for physical injury to a third party. For example, imagine that you are working at a client’s property and you leave your tool box on the floor. As they are leaving, the client trips over your tool box and injures themselves.
Care, Custody, and Control
Damage to property or belongings that are in your “care, custody, or control” is not covered under our CGL policy. This includes:
– Property you own, rent, occupy, or that was loaned to you
– Premises you sell, give away, or abandon
– Personal property in the care, custody, or control of the insured (you)
– Your product or your work
Certificate of Insurance (COI)
A certificate of insurance (COI) is a physical or electronic document that provides proof to anyone you work with that you have a valid insurance policy in place. 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 industry standards.
A first-party insurance claim is made by the policyholder, while a third-party insurance claim is made by someone other than the policyholder or the insurance company.
When it comes to General Liability, which covers property damage and bodily injury to third parties, claims typically fall into the category of third party claims. For example, if you are a handyman working on a client’s property and your ladder tips over, breaking a window, your client can file a claim to be reimbursed for the damage.
A claims made policy only covers claims reported to the insurance carrier when the policy is in effect. This means two criteria must be met for your coverage to apply:
– You have an active insurance policy or extended reporting period in place when the claim is made.
– You have continually renewed or extended the policy from the time the incident occurred to the time the claim is made.
Commercial General Liability
General Liability coverage applies to bodily injury and property damage for an occurrence that takes place in the national coverage territory, which is defined as the United States of America (including its territories and possessions), Puerto Rico, and Canada.
Policies are rated for you for the acceptable activities you select based on your ZIP code. Coverage, however, is not limited to your specific location or ZIP code. That means that under your policy, you can have a business address in one state and perform work in another state.
Your crew includes anyone who is engaged in a cooperative effort with you whose actions related to the covered activities you would like to be insured by your policy. Adding a crew member adds them as an insured so their actions are covered, whereas the actions of Additional Insureds are not generally covered.
Errors and Omissions
Professional Liability protects the insured against errors and omissions claims—i.e., if someone alleges that you’ve performed your professional services improperly or inadequately.
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 the most fundamental insurance coverage a business can purchase. It protects a business against the risk of unintentional accidents, which include bodily injury and property damage to a third party.
Insurance Services Office (ISO)
ISO is shorthand for the Insurance Services Office, a standards body for the insurance industry. To ensure the broadest acceptability among clients, the CGL policy we arrange uses the ISO CG 00 01 04 13 coverage form as its base, along with proprietary endorsements and exclusions.
The $5,000 included in your insurance policy covers immediate medical expenses for 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.
A named insured is a specifically named individual or firm (usually the policyholder) with whom an insurance contract is made, and whose interests are protected under the policy. In some cases, more than one entity may be designated as named insureds.
Thimble requires a person to be the first named insured but offers the option for a company to be another named insured.
Under an occurrence insurance policy, you are covered for incidents that occur when the policy is in effect, even if the claim is made after the policy period has ended.
Personal injury is a category of insurable offenses that produce harm (including bodily injury) resulting from false arrest, detention, or imprisonment.
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.
Products and Completed Operations Liability
In addition to bodily injury and property damage that occur during the policy period, many General Liability policies include coverage for liability that arises from an insured’s products or business operations occurring after operations have been completed or abandoned.
Professional Liability Insurance
Professional Liability insurance can serve as a complement to your General Liability policy depending on your coverage needs. Professional Liability insurance is designed to protect against claims that result from errors and omissions in the performance of professional services—in other words, when someone alleges that you’ve done your job improperly, Professional Liability insurance may kick in.
General Liability insurance offers coverage for damage to another person’s or business’ property. For example, imagine you are meeting in a client’s office. While walking towards them, you trip over a cord and knock over an expensive lamp. The client wants you to reimburse her for the cost of the lamp.
Subrogation refers to an insurance carrier’s legal right to pursue a third party that caused an insurance loss to the policyholder. This allows the carrier to seek repayment for the claim amount that they paid for the loss.
Waiver of Subrogation
A waiver of subrogation is a contractual provision that forfeits the right of subrogation. In other words, the insured waives the right of the insurance carrier to seek compensation for losses from an at-fault third party. A waiver of subrogation is only provided for scheduled Additional Insureds.