Additional Insured	A person or persons other than the original named insured, who are protected under the terms of a policy.
Advertising Injury Liability	Provides coverage for such offenses as oral or written publication of material that slanders or libels a person or organization or its products or services or infringes on the right to privacy.
Aggregate Policy Limit	The maximum amount an insurance company will pay under the terms of a policy during the term covered by that policy.
Aircraft Liability Insurance	This form of coverage protects the insured from claims for bodily injury or death by members of the public and passengers if included under the terms of the insurance. This kind of insurance is normally written with limits per injured person, and another limit per occurrence. Other policies may be issued with a combined single limit, or total aggregate amount with no limit per person, or for each passenger. Protection against loss from claims filed by any third party fo damage to property, including the use of that property, is a part of this coverage
Aircraft Non-Ownership Liability	Coverage that protects the named insured from liability arising out of the use of aircraft not owned by or regularly provided to the named insured.
Airport Premises Liability	Designed to protect the owner or operator of an airport against losses arising out of use of the airport.
Air Taxi and Charer Operators	Nonscheduled air carriers operating on-demand commercial service for passengers and cargo shippers.
Blanket Insurance	One amount of insurance covers all property located at multiple locations.
Bodily Injury	Injury to the body of a person including sickness, disease, or death.
Breach of Warranty	(Lienholders Interest) Provides physical damage (hull) coverage by endorsement for a lender in the event that the insured invalidates or breaches the contract and the company would otherwise not be obligated to pay.
Business and Pleasure	Any personal, pleasure, family, or business use of an aircraft excluding any operation for which a charge is made.
Business Auto Policy	An auto policy designed to protect a business firm against loss or damage to owned or lease automobiiles, trucks, and specialty vehicles, and for damages for bodily injury and property damage of others which an insured becomes legally oblicated to pay.
Business Income Coverage	Indemnifies a business for losses during the time the business is unable to operate while the property is being repaired or replaced.
Cancellation , Pro Rata	The cancellation of an insurance contract, usually at the request of the insurer, prior to its expiration. The insured normally receives a refund of that portion of the premium coinciding with the percentage of the unexpired term of the policy.
Cancellation, Short-rate	At the request of the insured, cancellation of a policy prior to its expiration will involve a return to the insured, of less than the proportion of the premium that would have been refunded under the pro rata procedure.
Charter	Commercial use of an aircraft for which a charge is made or compensation (consideration) in some form is received by the insured, while either carrying passengers and/or cargo, or performing some other service under a written or oral agreement (contract).
Chemical Liability	Liability incurred by aerial applicators as a result of chemical discharges from the aircraft for pest control or fertilization.
Coinsurance Clause	A provision that requires an insured to maintain insurance equal to some selected percentage of value, normally 80 or 90 percent of actual cash value or replacement value of the property.
Collision	The upset or collision with another object by an automobile.
Commercial Use	Use of an aircraft for which a charge is made while providing instruction, rental, charter, or other services.
Completed Operations	In products liability, used to describe aircraft repairs and servicing, including installation of parts and accessories.
Consequential Loss	A loss caused only indirectly by a risk against which insurance is in force. For example, losses to power company customers as a result of downed lines.
Contractual Liability	A contractual obligation to pay damages for which another is legally liable.
Conventional Landing Gear	The two main wheels are mounted forward of the center of gravity with the balancing wheel in the rear. The aircraft sits with a nose high attitude while on the ground.
Declarations Page	Statements that present information about the risk to be insured, including items such as policy period, amounts and types of coverage, and a description of the insured property.
Deductible	Amount of expense to be paid by the insured after a loss, and prior to or in conjunction with payment of any policy benefits.
Degree of Risk	The likelihood of an occurrence; the accuracy with which losses can be predicted.
Earned Premium	That portion of a premium for which the policy protection has already been given during the now-expired portion of the policy term.
Employers’ Liability Insuring Agreement	A part of the worker’s compensation policy which is designed to cover the liability of the employer to workers who can sue their employers under certain conditions such as gross negligence on the park of the employer.
Fixed Base Operators	Airport-based commercial operators who provide some or all of the following activities: line services, aircraft and engine maintenance, sale of parts and accessories, aircraft sales, charter and rental of aircraft, corporate flight services, and flight training.
Flying Club	An aircraft owned or operated by three ore more individuals. Flying clubs can be incorporated or nonincorporated organizations generally formed for the purpose of operating aircraft at a reasonable cost per capita.
Fractional Ownership	Several companies jointly purchase an aircraft to reduce costs. A management company normally provides the crew, maintenance, ground support, insurance, record keeping and overall operation of the aircraft.
General Damages	Include many intangible losses in addition to the loss of financial support suchh as loss of society, companionship, consortium, love, care, and protection.
Grounding Coverage	Written in conjunction with manufacturers’ product liability to protect the manufacturer in the event that aircraft are grounded by federal authorities.
Guest	A person who does not pay for transportation.
Guest Statutes	A law, in some states, prohibiting a guest riding in a friend’s vehicle or aircraft from suing that friend if there is an accident. However, the guest can sue if the driver or pilot has shown unusual (gross) negligence.
Guest Voluntary Settlement	Also known as admitted liability coverage. In the event of bodily injury to a passenger, the insurer offers a settlement on a definitely determined basis regardless of whether the insured is legally liable. A release must be obtained from the injured party prior to settlement.
Hail Insurance	Insurance against damage from hail. In aviation, this is included in all-risk hull insurance.
Hangarkeepers’ In-flight	Protects the insured hangarkeeper for loss or damage to non-owned aircraft while in-flight and in the hangarkeeper’s care, custody, or control.
Hangarkeepers’ Liability	A form of bailee insurance that covers the insured hangarkeepers’ liability for loss or damage to aircraft which are the property of others and in the insured’s custody for storage, repair, or safekeeping.
Hazards	A condition, operation, or activity that has the net effect of increasing the possibility of incurring a loss.
Hold-harmless Agreement	An agreement under whih the legal liability of one party for damages or injury is assumed by the other party to the agreement. Such hold-harmless agreements between pilots and passengers virtually never stand up in court.
Hull Insurance	Insurance covering the aircraft, including the engine, propeller, and all other systems and equipment permanently attached to the aircraft (though it may be removable for maintenance), including avionics. Hull insurance is usually issued with a deductible clause ranging from $50 to $250. Hull insurance may be written for aircraft on the ground, not in motion; for aircraft on the ground and in motion (meaning under its own power), or for aircraft in flight. When specified as all-risk coverage it covers the aircraft under all circumstances, regardless of the reason for damage or loss.
Indemnity	To protect and secure against damage or loss; to make good; to compensate for loss.
Industrial Aid	A term that applies to corporate-owned aircraft that are used for the transportation of executives, employees, customers, and guests, which are flown by professional pilots.
Inflation Guard Endorsement	Designed to automatically and continuously increase the limit of insurance for the coverage to which it applies on a quarterly basis.
In Flight	The time commencing with the actual takeoff run of the aircraft and continuing thereafter until it has completed its landing roll.
Ingestion Deductible	A deductible for jet aircraft which applies to damage done to a turbine engine due to the engine sucking up foreign objects.
Inland Transit Policy	Covers the insured for loss or damage to owned personal property while being transported by others.
In Motion	While the aircraft is moving under its own power or the momentum generated therefrom or while it is in flight and, if the aircraft is a rotorcraft, any time that the rotors are rotating.
Insurable Interest	In property insurance an insurable interest is any financial interest based on some legal right in the preservation of the property. An exposure to a financial loss must exist for there to be an insurable interest in the occurrence of some event. In life insurance, it is usually because the insured or a beneficiary has a financial interest in the continued existence of the insured life or the expectancy of loss in the ending of the insured life. It must be present in life insurance before the contract goes into effect.

Interchange Agreement	One company leases its airplane to another company in exchange for equal time, when needed, on the other company’s airplane and no charge or assessment is made.
Key-person Insurance	Insurance that provides adequate compensation for the loss of services by disability or death of a vital employee, and resources with which to secure in a competitive market the services of a successor. Such insurance may be written to pay the employee if disabled, his heirs in the event of death, or his employer.
Liability Insurance, Bodily Injury	Insurance to cover the cost stemming from bodily injury or death to persons other than the insured. In aviation, this type of insurance is usually with limits per injured person and another limit per occurrence, though other policies are written with a single limit.
Liability Insurance, Property Damage	Insurance against loss due to claims for damage to another’s property.
Limited Commercial Use	Use of an aircraft for which a charge is made while providing instruction and rental services.
Limit of Liability	The maximum limit of liability (damages) that an insurance company assumes or is obligated to pay under the terms of any individual insurance contract.
Lloyd’s of London	A corporation that neither underwrites (subscribes) policies of insurance nor directly issues them itself. Insurance is written by individual “underwriting members” who must be elected to membership within the Lloyd’s Association. The actual insurer then is not Lloyd’s but instead the various underwriters at Lloyd’s. The exchange (Lloyd’s) provides underwriting quarters for its members and a place for transaction of insurance business by member underwriters, as well as risk management support services.
Loss of Use	Compensation made to an insured against loss resulting from the inability to use property, such as an aircraft in furtherance of his business.
Loss Payable Provision	A clause sometimes contained within a policy that provides payment of a loss for which the insurer is liable to the insured, to someone other than the insured; a third party who has an insurable interest in the property covered under the terms of an insurance contract.
Loss Ratio	The ratio of incurred losses and loss adjustment expenses to net premiums earned, expressed as a percent. This ratio measurers the company’s underlying profitability, or loss experience, on its total book of business.
Named Insured	The actual policyholder wo is specifically named in the policy.
Negligence	Failure to do what a reasonable, careful, conscientious person is expected to do; doing something that a reasonable careful, conscientious person would not do.
Non-Owned Hull (Aircraft Damage Liability)	Insurance designed for pilots flying rented, borrowed, or club aircraft, or for students flying flight-school aircraft, covering the value of the aircraft.
Non-Ownership Liability	See Aircraft Non-Ownership Liability.
Occurrence	An accident, including continuous or repeated exposure to conditions, which results in bodily injury or property damage neither expected nor intended from the standpoint of the insured.
Peril	The actual cause of a loss such as a fire, windstorm, theft, collision, negligence, crime, premature death, and so forth.
Personal Injury Liability	Liability because of false arrest, libel, slander, or invasion of privacy.
Personal Injury Protection (PIP)	A no-fault type of coverage that pays the insured, relatives living in the insured’s home, passengers other than family members, and licensed persons who drive the car with the insured’s permission for certain accident related medical expenses regardless of who caused the accident.
Physical Damage	Direct and accidental physical loss of, or damage to property (an aircraft). The term does not infer loss of use or any residual depreciation in value, if any, after repairs have been made.
Premium, Earned	A portion or ratio of premium that has been paid to an insurance company, that covered the expired segment of the policy period.
Premium, Return	A refund of paid-up premium to a policyholder. It is computed either on a short-rate basis if the insured request cancellation, or pro rata if the company terminates coverage.
Premium, Unearned	Premium that in a sense is on-deposit with the insurer, to cover the unexpired portion of the policy period.
Private Use Airports	Airports not open to the general public, but restricted to the use of their owners and invited guests of the owners on an exclusive basis.
Proof of Loss	A statement that provides insurers with the facts necessary to determine the existence and extent of their liability.
Public Use Privately Owned Airports	Airports that are located on the outskirts of a metropolitan area and serve as the general aviation airport for the community.
Public Use Publicly Owned Airports	Airports that range in size from the major airports serving a metropolitan area to a small single grass strip owned by a local community.
Replacement Cost	The cost to replace the property today with new materials of like kind and quality.
Risk Management	The systematic identification of a company’s exposures to the risk of loss, and with decisions on the best methods for handling these exposures in relation to corporate profitability.
Risk Transfer	The decision by a risk manager to transfer the burden of a loss to an insurance company by purchasing insurance or to some other person or group of persons.
Single Limit Legal Liability	Liability coverage that provides one limit for bodily injury and property damage (including or excluding passengers) which represents the insurer’s maximum liability for one claim or for any combination of claims which might arise from one occurrence.
Subrogation	The doctrine of subrogation gives the insurer whatever rights the insured possessed against third parties who are responsible for a loss. The right of subrogation by the insurer is limited in amount to the loss payment which has been made to the named insured. In order to actually recoup its loss payment, the insurer must prove the liability of the wrondoer, and that the negligent party has the financial ability to pay for the loss he caused.
Supplementary Payments	A policy provision whereby the insuring company agrees to pay any and all costs levied against an insured in preparation of a legal defense should a loss occur.
Temporary Use of Substitute Aircraft	A policy clause that enables an insured to use another non-owned aircraft of similar type, horsepower, and seating capacity for such a time that the insured’s aircraft is being repaired or serviced.
Territorial Limits	Stipulations in an aviation insurance policy that define the geographical boudaries in which coverage is provided to an insured.
Third Party	(1) Someone who is not directly connected with a contract, a deal, a lawsuit, an occurrence, etc., but who may be affected by its outcome. (2) Personsl other than the plaintiff or defendant who are brought into a case.
Time Sharing Agreement	The lease of an aircraft with flight crew to another party, and nocharge is made other than spepcified direct operating expenses.
Transportation Costs	A provision in the hull and liability policy indicating that, in the event of a partial loss, the aircraft must be transported by the least expensive method Web site design Fort Collins to a repair station. Some policies stipulate a percentage of the insured value as a limitation.
Tricycle Landing Gear	The two main wheels are aft of the center of gravity and a third wheel is under the nose.
Umbrella Liability Insurance	Excess insurnace, usually with a substantial deductible, and also providing coverage for many risks not included in the basic coverage.
Underwriting	The selection and rating of risks which are offered to an insurer. The entire process is based upon the property selection and rating of risks that the insurer feels will have the greatest likelihood of being profitable for the firm.
Unearned Physical Damage Premium	A pro rate return of the unearned portion of the hull premium in the event of total loss.
Uninsured / Underinsured Motorists Insuring Agreement	Promises to pay the insured an amount he or she could have collected from the insurer of a negligent uninsured / underinsured driver if the driver had carried adequate automobile liability insurance.
Vicarious Liability	The responsibility of one person for the acts of another.
Waiver	The voluntary giving up or renouncing of a right, benefit, or privilege.
Waiver of Premium	A provision that under certain conditions a life insurance policy will be kept in full force by the company without further payment of premiums. It is used most often in the event of total and permanent disability
Warranty	(1) A statement that certain facts are true, made by one party to a contract, and accepted by the other party as true. (2) An agreement to make up for any damages that result from a false representation of facts.
Workers’ Compensation Insuring Agreement	Insurance against liability imposed on certain employers to pay benefits and furnish care to employees injured, and to pay benefits to dependents of employees killed in the course of or arising out of their employment.