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Business Inssurance
Finance vocabulary
| sentence | term/definition |
|---|---|
| If your trucks carry $1M in cargo daily, your total financial e.............. is far higher than a local courier's." | exposure (The state of being subject to a loss; the total value at risk.) |
| A multinational company has a high r............... t...............; they might choose a massive deductible to save on premiums | risk tolerance (The amount of risk an individual or organization is willing to accept or retain before transferring it to an insurer.) |
| "Leaving the warehouse storage bays unventilated during the summer months created a severe h.................. that significantly increased the probability of a chemical fire." | hazard (A specific condition or situation that increases the probability or severity of a loss) |
| Based on .................. ................., logistics companies operating in winter conditions face a 12% higher collision rate. | actuarial data (Statistical information, calculations, and historical tables used by insurance companies to estimate the probability of future claims.) |
| We need to establish your ................ ............... for third-party property damage before we can bind the coverage. | liability limits (The maximum amount an insurance company will pay out for a covered loss under a specific policy.) |
| According to our ................ .................., because your business operates 24/7, we require a higher baseline security setup | Underwriting Guidelines (The set of rules, risk limits, and criteria an insurance company uses to decide whether to accept a risk and how to price it.) |
| A standard property policy won't cover flood damage, so we need to attach a flood ............ to fully protect your inventory | Riders (Amendments or additions fastened to a standard policy that expand or restrict its original coverage (add-ons). |
| To keep her health insurance policy active, Maria pays her ............. every month on time. | Premium (The periodic payment (monthly/annual) required to keep an insurance policy active) |
| Before the insurance company covered the cost of the repairs, James had to pay his ................ out of pocket. | Deductible (The fixed amount the insured must pay out-of-pocket before the insurance company begins paying for a covered claim) |
| The construction contractor paid a ................ for his physical therapy session after a job-site injury, while his insurance covered the remaining cost of the treatment. | Copay (A fixed, predetermined fee the client pays per service or per claim event, while the insurer covers the remaining rest) |
| After several medical treatments related to a job-site accident, the construction contractor reached his ............... ..............., so his insurance company covered 100% of his remaining covered medical expenses for the rest of the policy year. | Out-of-Pocket Maximum (The absolute ceiling or limit on what the client will have to pay themselves during a policy period. Once hit, the insurer covers 100% of remaining covered costs) |
| After a fire damaged the contractor's excavator, the insurance policy provided .............. .............. coverage, allowing him to replace the equipment with a new one of similar quality without any deduction for depreciation. | Replacement Cost (The cost to repair or replace an insured asset with materials of like kind and quality, without deducting for wear and tear.) |
| After a severe storm damaged the contractor's skid steer loader, the insurance company paid its ............. .............. ..............., taking into account the machine's age and depreciation rather than the cost of buying a brand-new replacement. | Actual Cash Value (The value of the asset at the time of loss, calculated as Replacement Cost minus Depreciation.) |
| Because of ......................., the contractor's ten-year-old bulldozer was valued at much less than its original purchase price when the insurance company calculated the claim payment. | Depreciation (The decrease in the value of an asset over time due to age, wear, tear, and economic obsolescence.) |
| Before settling the claim, the insurance company ordered an .................... of the contractor's damaged crane to determine its condition and fair market value. | Appraisal (An expert, professional valuation or assessment of an asset's physical condition and monetary worth) |
| Installing a commercial-grade lightning rod on your facility is an excellent form of risk .................. | Mitigation (Actions taken by the insured to lessen the severity, impact, or probability of a loss.) |
| The construction contractor invoked the .............. ................... clause after severe flooding made it impossible to complete the project on schedule, relieving him of liability for the delay. | Force Majeure (An unforeseeable, extraordinary event or circumstance beyond human control (e.g., war, extreme natural disasters) that prevents someone from fulfilling a contract.) |
| If your trucks carry $1M in cargo daily, your total financial .................. is far higher than a local courier's | Exposure (The state of being subject to a loss; the total value at risk.) |
| A multinational company has a high .............. ..................; they might choose a massive deductible to save on premiums | risk Tolerance (The amount of risk an individual or organization is willing to accept or retain before transferring it to an insurer.) |
| The insurance inspector identified exposed electrical wiring as a .................... because it significantly increased the risk of a fire at the construction site. | hazard (A specific condition or situation that increases the probability or severity of a loss.) |
| The insurance adjuster noted that the lack of fire sprinklers and the broken security cameras were .............. ................ that increased the likelihood of property damage and theft at the contractor's construction site. | Physical Hazard (Broken security cameras, lack of fire sprinklers, etc.) |
| The insurance company became concerned about ............ ............... when the construction contractor stopped enforcing safety protocols because he believed his insurance policy would cover any accidents or resulting losses. | Moral Hazard (A client being careless with safety because they know they are insured.) |
| Based on ........... ............., logistics companies operating in winter conditions face a 12% higher collision rate | actuarial Data (Statistical information, calculations, and historical tables used by insurance companies to estimate the probability of future claims.) |
| We need to establish your ............. .............. for third-party property damage before we can bind the coverage | liability Limits (The maximum amount an insurance company will pay out for a covered loss under a specific policy.) |
| The construction contractor purchased ............. ............... insurance to protect his business in case an error in his engineering calculations caused structural damage and financial losses for the client. | Professional Indemnity (Insurance covering the design, engineering, and surveying aspects of a project. It protects the contractor if their plans, advice, or calculations cause structural issues or financial losses) |
| If your design-build team specifies the wrong grade of steel for a bridge and it has to be torn down and rebuilt, ............... covers the massive financial loss of that delay and reconstruction. | Errors and Omissions (E&O) (Design-Build Liability. Specifically protects contractors who handle both the design and build phases. If a contractor suggests a specific material or construction method that later fails, this covers the cost of the error.) |
| The contractor was found guilty of ..................... after he ignored building codes and skipped required structural safety inspections, resulting in significant damage to the newly completed building. | Negligence (Failure to exercise the level of care that a reasonable contractor would under similar circumstances (e.g., ignoring building codes, using uncertified subcontractors, or skipping structural safety steps). |
| The contractor's liability insurance covered the ................. ................. filed by neighboring property owners who alleged that the excavation work had caused cracks in their building foundations. | Third-Party Claims (Lawsuits brought against the contractor by outside parties (e.g., neighboring property owners claiming excavation caused their foundations to crack, or pedestrians injured near the job site). |
| The construction company purchased .............. .............. ................ ................. insurance to protect its executives' personal assets after shareholders filed a lawsuit alleging financial mismanagement on a major commercial development project. | Directors and Officers (D&O) Liability (Covers the personal assets of the construction firm’s executives if they are sued by shareholders, joint-venture partners, or regulators for financial mismanagement or safety violations.) |
Created by:
PRO Teacher
shirley jaldin
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