Umbrella Policy - Type of policy that provides broad coverage for an insured’s liability over and above liability covered by an underlying contract. May also cover losses that are excluded by the underlying policy. Available as personal or commercial insurance.
Underinsured Motorists Coverage - Auto coverage that pays the difference between the insured’s actual damages for bodily injury and the amount of Liability insurance carried by the at-fault driver. May be added to the Personal or Commercial Auto policy by endorsement.
Underwriting - Insurance company function that involves researching and evaluating insurance applicants to decide which ones are acceptable to the company as insured’s.
Unfair Discrimination - Applying different standards to insured’s that have the same risks of loss.
Unilateral Contract - A contract where an act is exchanged for a promise. An insurance policy is a unilateral contract because payment of premium is exchanged for a promise to provide coverage.
Uninsured Motorists Coverage - Automobile coverage designed to provide protection for the insured if he or she is involved in an accident in which an uninsured motorist is at fault. Uninsured motorists include those who do not carry insurance, motorists whose insurance does not meet the state’s minimum financial responsibility laws, drivers whose insurance companies are insolvent, and hit-and-run drivers who cannot be identified.
Unoccupancy - The absence of people from a premises. Property coverage is often restricted if there are long periods of unoccupancy.
Utmost Good Faith - A characteristic of insurance contracts meaning that the insurance company must be able to rely on the honesty and cooperation of the insured, and the insured must rely on the company to fulfill its obligation.
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Vacancy - The absence of both people and property from a premises. Property coverage is often restricted when there are long periods of vacancy.
Valuable Papers and Records Insurance - Filed Commercial Inland Marine form that provides coverage for valuable papers such as manuscripts, blueprints, records, and other printed documents. This coverage can also be added to the Businessowners policy by endorsement.
Valuation - Method used by the insurance company to determine the appropriate payment for a loss.
Valued Policy - Policy written for a specified amount that lists the value of the insured property as agreed to by both the insured and the insurer. This amount is used to value losses. Also called an Agreed Amount Policy.
Vandalism And Malicious Mischief (V&MM) - Coverage provided in many Property insurance policies that protects property against damage caused by vandals.
Vicarious Liability - Liability that a person or business incurs because of the actions of others, such as family members or employees. Also called imputed liability.
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Waiver - The intentional relinquishment of a known right.
Warranty - A specific agreement between the insured and the insurer that becomes part of the insurance policy. A breach of warranty can void the policy.
Watercraft Endorsement - Homeowners policy endorsement that provides coverage for BI or PD arising out of the use of watercraft.
Watercraft Package Policy - Package policy that provides Property, Liability and Medical Payments coverage for losses arising out of the ownership, maintenance or use of watercraft.
Workers Compensation and Employers Liability Policy - Insurance that covers an employer’s obligations under Workers Compensation laws, which make the employer responsible for stated damages in the event of a work related injury or illness. Also covers the insured’s liability for work related injuries under common law.
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