Relevant Insurance Terms (Excerpted)

absolute exclusion

Refers to any clause that is designed to bar coverage for a given peril without the use of any coverage exceptions.

ambiguity

Anything doubtful, uncertain, unclear, or capable of being misunderstood in an insurance contract. Ambiguities are usually construed against the insurer.

commercial property policy

Commercial property policy provides coverage for real and personal property that is used in a business.

concurrent causation

A legal concept of applying insurance coverage when two or more hazards or perils (with at least one being a covered hazard/peril) contribute to creating a loss, essentially at the same time.

exclusion

The peril, hazard, condition or circumstance that is not covered by the insurance and is so stated in the policy. A clause in an insurance policy which specifies what is excluded from the policy's coverage.

first party insurance

Insurance that pays for loss to an insured who is considered the first party to an insurance contract. The second party is the insurance company.

liability insurance

Protection which pays sums that an insured is legally obligated to pay, or that the insurer has agreed to pay, as damages to others as a result of the insured's negligence. Usually provides coverage for bodily injury or damage to property of others.

third-party

The claimant under a liability policy, so called because the first two parties are the insured and insurer, who enter into the insurance contract, which pays the third- party's claim.