Glossary of Terms

What your business property (like tools or a building) is worth today, accounting for wear and tear. Not what you paid, but its current value.

Covers medical bills or lawsuits if your business causes someone to get hurt, like a customer tripping over your tools.

Covers buildings under construction or renovation, like a new office or home your crew is working on, against damage from fire, theft, or storms.

Helps pay your bills if your business has to shut down temporarily, like after a fire or storm. Keeps the lights on while you get back on your feet.

A bundle of insurance coverages, like property and liability, designed for small businesses. It’s like a one-stop shop to protect your shop or truck.

When something goes wrong—like equipment gets stolen or a customer sues—you file a claim to get your insurance to help cover it.

Covers vehicles you use for work, like your work truck or van, if they’re in an accident or get stolen. Different from personal auto insurance.

Protects your business stuff—like tools, equipment, or your shop—if it’s damaged by fire, storms, or vandalism. Handy for those Tennessee tornadoes.

What your insurance protects, like your building, tools, or lawsuits. It’s the ‘what’s included’ part of your policy.

Helps if your business gets hit by a cyberattack, like hackers stealing customer data or locking your computers. Covers costs like notifying customers or fixing systems.

The money you pay out of pocket before insurance covers a claim. For example, if a storm damages your shop for $10,000 and your deductible is $1,000, you pay $1,000.

Protects your business’s leaders from lawsuits over decisions they make, like if someone sues your manager for a bad call that lost money.

Covers lawsuits from employees, like claims of unfair firing or workplace harassment. Protects you from HR headaches.

A tweak to your policy, like adding coverage for a new piece of equipment or a new location. It’s a way to customize your insurance.

Erros and omissions (E&O) insurance covers risk associated with professional liability, protecting against financial loss, legal defense fees and settlement costs that result from negligence, mistakes, or failure to perform to a contract for professional services. E&O is essential coverage for service-based businesses, who might be at risk of issues such as incorrect advice, misrepresentations or missed deadlines.

Stuff your policy won’t cover. For example, flood damage might not be included unless you add it.

Covers you if your business accidentally hurts someone or damages their property. Think of a customer slipping in your store or you breaking their fence on a job.

Covers tools and equipment when they’re on the move or at a job site, like your drills or ladders getting stolen from a construction site.

Covers costs if your business is blamed for hurting someone or damaging their stuff. It’s about taking responsibility for accidents.

Helps cover costs if you can’t use your business property after a covered event, like renting a temporary shop after a fire.

Your insurance contract. It lays out what’s covered, what’s not, and what you’re paying for.

The amount you pay for your insurance, usually monthly or yearly. It’s the cost to keep your business protected.

Covers mistakes in the services you provide. If you’re a contractor and mess up a job, this helps cover lawsuits or fixes.

Pays for damage your business causes to someone else’s property, like if your crew accidentally busts a client’s window.

Pays to replace your business stuff with new items, without docking you for depreciation. Like getting a new computer instead of a used one.

An add-on to your policy for specific extras, like insuring a pricey piece of machinery or a company vehicle.

When your insurance pays your claim, then goes after whoever caused the problem to get their money back. Like chasing the guy who crashed into your work van.

A promise that your business will get the job done right, or the bond pays the client. Common for contractors bidding on projects, like building a new school.

Extra liability coverage that kicks in when your other policies max out. It’s like a backup plan for big lawsuits.

The process where the insurance company checks out your business—like its size, risks, or location—to decide your premium.

Pays for medical bills and lost wages if one of your employees gets hurt on the job. Required in Tennessee if you’ve got five or more workers.