Insurance glossary

An additional insured is a party added to another party’s policy by its terms or an endorsement. The endorsement—not a certificate—controls whether that party has coverage, for which claims, and on what conditions.

Business income insurance, also called business interruption insurance, is coverage for qualifying income loss and continuing expenses during a suspension of operations caused by a covered property event. The trigger and time period come from the policy.

A business owner’s policy, or BOP, is a small-business package that typically combines general liability, commercial property, and business-interruption coverage. Its actual coverages, exclusions, limits, and eligibility are set by the issued policy and endorsements.

A certificate holder is the person or organization identified on a certificate of insurance, other than the policyholder. The designation shows who receives the certificate; it does not itself make that party an insured.

A certificate of insurance is a document issued as evidence of property or casualty insurance coverage. It summarizes policy information but cannot amend the policy or give the holder rights the policy does not provide.

An independent contractor is a worker or business that performs a specified result while the principal controls the result rather than the means of the work. Employee-status and workers’ compensation rules are determined under the law that applies to the particular work and jurisdiction.

Liquor liability insurance addresses the insured’s legal liability for injury or death arising from negligent distribution, sale, or service of alcohol. Licensing and proof-of-insurance requirements vary by state and license type.

Primary and noncontributory is contract and endorsement language about the order in which potentially applicable policies respond. Its effect depends on the actual policy language, including any provision that incorporates a written contract.

Spoilage coverage is policy or endorsement coverage for loss to perishable stock after a qualifying change in temperature, humidity, contamination, or power event. The covered cause, location of the interruption, exclusions, and limit are all form-specific.

Utility services coverage is property-policy wording that may address loss caused by interruption of electricity, water, communications, or other scheduled utility service away from the insured premises. It is not assumed from a general property declaration alone.

A waiver of subrogation is an agreement that limits an insurer’s ability to seek recovery from a specified party after paying a loss. Its scope depends on the clause, the policy, and the loss context in which it is invoked.

Workers’ compensation is the state-law system for benefits related to work injuries and illnesses. Whether a business must secure coverage depends on the jurisdiction’s rules, including its employee definition, exclusions, and employer threshold.