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Bail Bond

Surety bond that guarantees that the principal will appear in a criminal proceeding. See Court bond.


One who has temporary custody of property belonging to another. (Example: dry cleaners.)

Bailees Policy

Inland Marine insurance obtained by a bailee, to cover loss or damage to customers property in the baiee’s custody, without regard to liability.


Illegal acts committed will fully by a ship’s master or crew for the purpose of damaging the ship or cargo. This Ocean Marine peril includes hijacking, abandonment and embezzlement.

Basic Limits of Liability

Minimum amounts of insurance. Usually the lowest amounts which can be written at the published rates or the minimum amounts an insurer is willing to underwrite.


The person named in a Life or Disability policy as a recipient of a death benefit.

Bid Bonds

A type of Contract bond which guarantees the obligee that if a contractor’s bid is accepted, the contractor will provide the required Performance, bond. See also Contract bond.


The agent or company representative agrees to cover the item/person etc. until the formal insurance contract is issued.


An oral or written statement providing immediate insurance protection, valid for a specified period. Designed to provide temporary coverage until a policy can be issued or denied.

Binding Authority

Authority granted by the insurance company who will ultimately assume responsibility for providing coverage. Allows an agent to act on behalf of the company for specific reasons and within prescribed guidelines.

Blanket Insurance

Insurance where a single amount of insurance applies to two or more   coverage items. Contrast Specific insurance. Also a type of Employee Dishonesty coverage that covers loss caused by any employee. Contrast Name Schedule coverage and Position Schedule coverage.

Blue Sky Bond

Surety bond required of investment companies, guaranteeing against misrepresentation of securities and defrauding the public

Bodily Injury

Any physical injury to a person. The purpose of liability insurance is to cover bodily injury to a third party resulting from the negligent or unintentional acts of an insured.

Boiler and Machinery Insurance

Covers losses resulting from the malfunction of boilers and machinery. This coverage is usually excluded from property insurance creating the need for this separate product.


A licensed person or organization paid by you to look for insurance on your behalf.

Broker of Record

A common term of “Agent of Record” is used to designate the broker who is to handle certain insurance policies for the named insured.

Brokerage Business

Generally, insurance accounts handled for one agent by another agent.

Builders Risk Coverage Form

Insurance that provides coverage for buildings under construction as well as materials, equipment, supplies and temporary structures used in construction. Part of the Commercial Property portion of the Commercial Package policy.


As it is defined in Crime insurance policies, the taking of property by a person unlawfully entering or leaving the premises, as evidenced by visible signs of forced entry or exit.

Burglary and Theft Coverage Form

Insurance coverage against property losses as a result of burglary, robbery, or larceny as defined by burglary.

Business Auto Coverage Form

A form which is a part of the Commercial Auto Coverage Part and is designed to cover the auto exposures of businesses, other than truckers or garages.

Business Income Insurance

A coverage which reimburses the insured for loss of earning due to  an interruption in operations caused by a covered peril; available with or without extra expense. One of the Commercial Property- forms available as part of the Commercial Package policy.

Business Personal Property

Furniture, fixtures (permanetly installed), equipment, machinery, merchandise, and all other personal property owned by the insured and used in the insured’s business.

Business owners Policy

A multi-peril, multi-line package policy designed to provide broad property and casualty coverages for small businesses.

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