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Businessowners Policy / BOP

A policy that combines property, liability and business interruption coverages for small- to medium-sized businesses. Coverage is generally cheaper than if purchased through separate insurance policies.

Business Income Insurance

This is also known as Business Interruption Insurance. It is commercial coverage that reimburses a business owner for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage from a covered peril, such as a fire. Business interruption insurance also may cover financial losses that may occur if civil authorities limit access to an area after a disaster and their actions prevent customers from reaching the business premises.

Burglary and Theft Insurance

Insurance for the loss of property due to burglary, robbery or larceny. It is provided in a standard homeowners policy and in a business multiple peril policy.

Broker

An intermediary between a customer and an insurance company. Brokers typically search the market for coverage appropriate to their clients. They work on commission and usually sell commercial, not personal, insurance. In life insurance, agents must be licensed as securities brokers/dealers to sell variable annuities, which are similar to stock market-based investments.

Book of Business

Total amount of insurance on an insurer's books at a particular point in time.

Boiler and Machinery Insurance

Often called Equipment Breakdown, or Systems Breakdown insurance. Commercial insurance that covers damage caused by the malfunction or breakdown of boilers and a vast array of other equipment including air conditioners, heating, electrical, telephone, and computer systems.

Bodily Injury Liability Coverage

Portion of an auto insurance policy that covers injuries the policyholder causes to someone else.

Blanket Insurance

Coverage for more than one type of property at one location or one type of property at more than one location. Example: chain stores.

Binder

Temporary authorization of coverage issued prior to the actual insurance policy.

Balance Sheet

Provides a snapshot of a company's financial condition at one point in time. It shows assets, including investments and reinsurance, and liabilities, such as loss reserves to pay claims in the future, as of a certain date. It also states a company's equity, known as policyholder surplus. Changes in that surplus are one indicator of an insurer's financial standing.

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