Agent A licensed individual or organization authorized to sell and service insurance policies for an insurance company. Aggregate Limit The maximum dollar amount of coverage in force for a property damage policy or liability policy. This maximum amount can be figured on a per occurrence basis or as a general aggregate for the complete policy term. Agreed Value A method …
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Builder’s Risk Added to a policy for a one-year minimum term to cover a new building or structure under construction or an existing structure undergoing additions, alterations, or repairs. Cancellation is allowed on a pro rata basis upon project completion; however, midterm cancellation will result in a short rate penalty. A reporting form or renovations form allows coverage to be …
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Underwriting Process Insurance companies decide the types of risks they will accept. This is referred to as underwriting and is the process by which an insurer selects and classifies risks according to their degree of insurability. Premiums The premiums charged for business insurance vary widely from company to company. It pays to shop around to obtain the best value for …
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