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F
Farm Owners-ranch owners policy
A "homeowners" type package policy adapted to include farm
and ranch exposures.
Fiduciary liability insurance
The insurance covers claims arising from a breach of the responsibilities
or duties imposed on a benefit administrator, or a negligent act, error,
or omission of the administrator.
Fire
Combustion evidenced by a flame or glow. Insurance distinguishes between
a "hostile" fire (one out of bounds) and "friendly" fire
(such as that contained within the fire box of a stove).
Fire department service charge
A fee that may be imposed by a fire department for responding to a call.
Most fire coverage agreements include indemnification provisions for
such eventualities.
Fire legal liability
Public liability policies routinely exclude coverage for damage to property
in an insured’s care, custody, or control. This leaves a big
gap in a tenant’s coverage, a gap partially filled by an exception
in the commercial general liability policy that restores limited coverage
for fire damage to the landlord’s building. Perhaps the best
benefit of the exception is to call attention to the exposure so arrangement
can be made for broader coverage at appropriate limits.
First named insured
An insurance policy may have more than one party named as insured. In
such cases, the first named insured attends to policy "housekeeping," i.e.,
pays premium, initiates (or receive notice of) cancellation, or calls
for interim changes in the contract. This is spelled out in commercial
policies in the "common policy conditions."
Floater
An inland marine form covering movable property wherever located within
territorial limits.
Flood insurance
Flood insurance, like earthquake coverage, is usually only of interest
to those relatively few whose property is exposed. Consequently, losses
among this small group will be high and premiums can be prohibitive.
However, in 1968 the Federal government stepped in to help property
owners in designated "flood plains" with the National Flood
Insurance Act of 1968. Coverage is not only available, but may even
be required to obtain financing financing for exposed properties.
Fraud
The intentional perversion of the truth in order to mislead someone into
parting with something of value.
G
Gap coverage
Insurance for a lessee designed to cover the difference in selling price
between a vehicle’s actual cash value, and the payout left on
a lease.
Garage policy
One of the early package policies, it is written for automobile dealers
and may include liability for garage operations, automobile operations,
physical damage coverage on garage owned autos, bailees coverage on
customers cars, and auto and premises medical payments coverage.
Garagekeepers liability
A bailee coverage applying to automobiles. Commonly included in garage
policies, it may be written to provide coverage for limited perils
or for comprehensive physical damage, with or without collision damage
coverage. Coverage may be expressed as covering the legal liability
of the garagekeeper or amended to cover on a direct basis, as primary
insurance or excess.
Glass insurance
Commercial property form that covers plate glass, glass signs, lettering,
etc.
H
Hired auto
A nonowned auto that may be borrowed as well as rented or leased by the
insured. Personal auto policy insureds are covered automatically for
hired autos, but business auto policy insureds may not be.
Hold harmless agreement
A contractual assumption by one party of the liability exposure of another.
Lease agreements, for example, commonly require the tenant to hold
the landlord harmless for bodily injury to property damage experienced
by others on the premises.
Home Owners insurance
An early and hugely successful example of "packaged" property
and liability insurance. A mid-twentieth century insurance development
was introduction of the so-called "multi-line era" in which
insurers became empowered to write both property and liability forms
of insurance, making way for the first packaging of these coverages within
a single policy.