| Q. Insurance Terms ? Worker Compensation: Insurance that pays for medical care and physical rehabilitation of injured workers and helps to replace lost wages while they are unable to work. State laws, which vary significantly, govern the amount of benefits paid and other compensation provisions. Experience Modification Ratio: Simply put, your workers' compensation experience modification is the ratio of your actual work comp losses to the losses expected of an employer like you. The caluculation considers your employment classification and your payroll on the comparision. Employment Practices Liability Insurance: Is a relatively new form of liability insurance. It provides protection for an employer against claims made by employees, former employees, or potential employees. It covers discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual harassment, and other employment-related allegations. It covers your firm, including its Directors and Officers. Business Owners Policy/BOP: A policy that combines liability and business interruption coverages for small to medium size business. Coverage is generally cheaper than if purchased through separate insurance policies. General Liability Insurance: Insurance designed to protect owners and operators from a wide variety of liability exposures. Exposures could include liability arising from accidents resulting from the insured's premises or operation, products sold by the insured, operations completed by the insured, and contractual liability. Property Insurance: Coverage in which the insured shares in losses proportionately to the extent of the amount of insurance. Bonds: Bonds of various types guarantee a payment or a reimbursement for financial losses resulting from dishonesty, failure to perform, and other acts. Premium: The price of insurance protection for a specified risk for a specified time. Back to top >>> | 
