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CERTIFICATE OF INSURANCE |
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A certificate of insurance is in the usual sense of the word a copy of a policy. When a policy is issued covering a piece of property which is mortgaged with a “mortgagee clause” attached, as is often the case with properties such as dwelling houses, the mortgagee usually insists that he be given the original policy. In such cases a certificate is issued by the agent or the company, which is given to the owner for his records. Also the document which gives the specific details of property insured by “master” or “open” policies. Ocean marine cargo insurance usually handled by use of certificates referring to an open master policy. |
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CLAIM |
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The amount that a policyholder believes he has coming from an insurance company as the result of some happening insured against. After its amount has been determined, it becomes a “loss.” In practice, the terms “claim” and “loss” are synonymous. |
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COINSURANCE CLAUSE |
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A clause contained in some fire and burglary policies, requiring the insured to carry insurance equal to a stated percentage of the value of the insured property if he is to collect his partial losses in full up to the limits of the policy. |
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COLLISION |
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Either a vehicle or a ship collides when it strikes another object or another vehicle or ship. Collision insurance insures against loss so caused. |
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COMMERCIAL BLANKET BOND |
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Insures an employer against loss through dishonest acts committed by his employees, and covers all employees in the regular service of the employer during the term of the bond. A commercial blanket bond is issued for a fixed amount, which is the maximum sum payable for any one embezzlement, whether one or more employees in involved. See “Blanket Position Bond”. |
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COMPLETED OPERATIONS |
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This term refers to the liability a contractor might incur from improperly performed work after he has completed a job. At one time regarded as part of products liability, but now more properly regarded as a separate coverage. |
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COMPREHENSIVE AUTOMOBILE COVERAGE |
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An item of coverage in an automobile physical damage policy insuring against loss or damage resulting from numerous miscellaneous causes such as fire, theft, windstorm, flood, vandalism, etc., but normally not including loss by collision or upset. |
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COMPREHENSIVE GENERAL LIABILITY POLICY |
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A policy particularly suited to a manufacturer, contractor or large wholesaler or retailer providing broad coverage for claims made against him for bodily injury or damage to property of others for which he may become liable and which arise out of his entire business operation. Automobile liability coverage's may be included in this policy. |
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CONTINGENT LIABILITY |
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A liability which may be incurred by an insured as a result of negligence on the part of independent persons engaged by him to perform work. The most common example is the contingent liability of a principal contractor, which may result from construction operations undertaken by his subcontractors. In property damage insurance, the possibility of financial loss to a policyholder resulting from damage or loss to the property of another, e.g., a supplier or a customer. |
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CONTRACTOR'S EQUIPMENT FLOATER |
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An inland marine form to insure the equipment, tools and materials of a contractor. |
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CONTRACTUAL LIABILITY |
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Liability as set forth by agreements between people as distinguished from liability imposed by law (legal liability). |
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COVER NOTE |
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A memorandum of an agreement to insure issued to record the transaction pending the writing of the policy or coverage. A policy to “close out” will be issued to replace it shortly. |
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