We understand that insurance terminology can be daunting and confusing at times, so we’ve created a quick go-to guide to understanding insurance terminology! Please use this as a reference to help you understand insurance terms and coverage whenever you need!

KEY TERMS:

Product Liability

Protection against claims of bodily injury and property damage caused by products or services supplied through the business.

Umbrella (Primary/Excess)

Additional liability insurance for when claims exceed the coverage limits of an existing liability policy.

“All Risk” Property

Property insurance covering loss arising from any fortuitous cause except those that are specifically excluded.

Equipment Breakdown

Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown.

Stock and Inventory

Coverage for manufactured products ready for sale or packaged and sealed inventory containing marijuana buds or its derivatives; no harvested or growing plants fall into this category.

Living Plant (Crop)

Coverage for viable vegetation in a controlled, indoor environment still rooted in a growth medium.

Auto (Primary/Excess)

Coverage for physical damage and bodily injury involving a company-owned vehicle or vehicle driven for business-related purposes.

Workers’ Compensation

Coverage for the expenses, including wages and benefits, pertaining to work-related employee injury or illness.

Director & Officer

Coverage for losses arising as a result of wrongful act allegations and lawsuits brought against the directors and officers of a company.

Employment Practices Liability

Protection against claims that an employee’s legal rights have been violated as a result of discrimination, wrongful termination, harassment, etc.

Crime

Protection against crimes such as employee dishonesty, theft, forgery, and fraud.

Professional Liability

Protection against claims that a professional service or product you provided caused a customer financial harm.

Inland Marine

Protection for property or goods in transit.

Miscellaneous & Manuscript

Custom policy tailored to the needs of the insured often written with special types of coverage or certain conditions added.

Kidnap & Ransom

Coverage for money paid to kidnappers and extortionists, or other losses as a result of kidnapping.

Product Withdrawal/Recall

Coverage for an instance in which your product is recalled or withdrawn from the market because of known or suspected defects or tampering which has caused or is reasonably expected to cause injury.

Open Peril or Special Cause of Loss Property

Protection against damage caused by any peril except those specifically excluded in the policy.

Business Interruption

Coverage for loss of income suffered by a business when damage to the premises by a covered cause of loss causes a slowdown or suspension of operations.

Goods-in-Process

Coverage for partially completed goods, such as cannabis buds and flowers that have been harvested and are in the curing phase of production that are not yet ready for sale; no stock, crop or growing plants fall into this category.

Please note that the information on this website, including all articles, videos, and presentations, is expressly the opinion of the creator/author of that material. We are not lawyers and are not providing legal advice in regards to insurance. It is respectfully offered with the intention that exploring this material will be educational and helpful to you.