Property & Casualty Glossary

Insurance that covers the loss of income and additional expenses a business incurs when operations are disrupted due to a covered physical damage event.

Insurance that covers loss of or damage to insured property caused by burglary, housebreaking, theft, or robbery, typically requiring evidence of forcible entry.

Insurance covering sudden and accidental breakdown or explosion of boilers, pressure vessels, and related equipment, including damage to the equipment itself and surrounding property.

A motor insurance policy that covers both own damage to the insured vehicle and third-party liability, providing the widest level of protection for vehicle owners.

Insurance that covers all risks of physical loss or damage to construction works, materials, and equipment during the construction period, including third-party liability.

Insurance that protects farmers against loss of crops due to natural disasters, pests, diseases, or adverse weather conditions, with PMFBY being the primary scheme in India.

Insurance coverage that protects businesses against financial losses resulting from data breaches, cyber attacks, ransomware, business email compromise, and other digital threats.

Liability insurance that protects directors and officers of a company against personal financial loss from lawsuits alleging wrongful acts in their capacity as company leaders.

A specialized class of insurance covering risks related to engineering projects, machinery, and equipment, including contractor all-risk, erection all-risk, and machinery breakdown policies.

Insurance covering the risks associated with the erection, installation, and testing of machinery and equipment at project sites, similar to CAR but focused on plant and machinery.

Insurance coverage specifically for damage caused by earthquakes, including structural damage, collapse, and related perils like fire following earthquake.

Insurance coverage for professionals who provide advice or services, protecting against claims that their work was inadequate, negligent, or contained errors that caused financial loss.

Insurance coverage that protects property against loss or damage caused by fire and allied perils such as lightning, explosion, and riot.

Insurance that protects an employer against financial loss caused by dishonest or fraudulent acts committed by employees, such as embezzlement, forgery, or theft.

Insurance specifically covering property damage caused by flooding from external water sources such as rivers, storms, and heavy rainfall, often excluded from standard property policies.

The standard set of insured perils covered under fire insurance policies, typically including fire, lightning, explosion, aircraft damage, riot and strike, storm, tempest, flood, and earthquake.

A separate, typically higher deductible that applies specifically to hurricane damage claims, usually calculated as a percentage of the insured value rather than a flat dollar amount.

Physical damage to property caused by hailstones, commonly affecting roofs, vehicles, siding, and outdoor equipment, and one of the most frequent types of property insurance claims in the United States.

The maximum sum insured for a motor vehicle, calculated as the manufacturer's listed selling price minus depreciation based on the vehicle's age, used as the basis for motor insurance claims in India.

The maximum duration for which a business interruption policy will pay for lost income, starting from the date of the incident until the business returns to normal operations.

Insurance where payouts are determined by an external index (such as weather data or crop yield statistics) rather than individual loss assessment, reducing administrative costs.

The financial loss suffered when a business cannot generate its normal revenue due to property damage from a covered event, forming the basis of business interruption claims.

Insurance coverage for domestic animals such as cattle, sheep, and poultry against death from disease, accident, or natural disasters.

Insurance that provides coverage to the insured against claims arising from injuries or damage to other people or their property, covering legal costs and settlement payments.

Insurance coverage for motor vehicles that provides protection against damage to the vehicle (own damage) and liability toward third parties for injury or property damage.

Insurance coverage that protects against sudden and unforeseen mechanical or electrical breakdown of machinery and equipment, excluding normal wear and tear.

A large-scale natural disaster such as a hurricane, earthquake, flood, wildfire, or tornado that causes widespread property damage and triggers a high volume of insurance claims.

The section of a motor insurance policy that covers damage to the insured's own vehicle from accidents, theft, fire, natural disasters, and other covered perils.

Insurance coverage that protects physical assets such as buildings, equipment, inventory, and personal property against damage or loss from covered perils.

Insurance that protects manufacturers, distributors, and retailers against claims arising from defective products that cause injury or damage to consumers or their property.

Insurance that protects professionals against claims of negligence, errors, or omissions in the services they provide, covering legal defense costs and settlement amounts.

Insurance that pays a predetermined amount when a specific measurable trigger is met (such as wind speed or rainfall level), without requiring traditional loss assessment or claims adjustment.

The basic property insurance policy in India that covers fire and allied perils including lightning, explosion, riot, storm, flood, and earthquake, following IRDAI prescribed wordings.

The downward movement of the ground beneath a building caused by natural shifts in soil, mining, or water extraction, which can cause structural damage to properties.

Damage to the load-bearing elements of a building, including foundations, walls, beams, columns, and roof structures, that affects the structural integrity of the property.

The legal liability of the insured toward third parties for bodily injury, death, or property damage caused by the insured or their property.

Insurance coverage for renters that protects personal belongings against theft, fire, and other covered perils, and provides liability coverage for injuries to visitors.

Insurance that pays out based on specific weather conditions being met, such as temperature thresholds, rainfall amounts, or wind speeds, regardless of actual damage.

Property damage caused by water from internal sources (burst pipes, leaking appliances) or external sources (floods, storms), with coverage depending on the cause and policy terms.

Insurance coverage for property damage caused by wind-related events such as hurricanes, tornadoes, and severe storms, which may be included in standard policies or require separate coverage in high-risk areas.