Insurance policies come with their own language. Here's a plain-language glossary of common terms you'll see on your General Liability policy, quote, or Certificate of Insurance.
A
Additional Insured
A person or business (other than the policyholder) added to your policy so they receive liability protection related to your work. Often requested by general contractors or property owners.
Aggregate Limit
The maximum amount your insurer will pay out for all claims combined during your policy period (usually one year). Once this limit is reached, no further claims are paid until the policy renews.
B
Binder
A temporary document confirming coverage is in place while the full policy documents are being finalized.
Bodily Injury
Physical injury, sickness, or disease to another person, along with related costs (e.g., medical expenses).
C
Certificate of Insurance (COI)
A document that summarizes your coverage — including limits, policy period, and any additional insureds — often requested by clients or general contractors as proof of insurance.
Claim
A formal request made to your insurer for payment related to a covered loss or incident.
Completed Operations
Coverage for claims that arise after a job is finished, rather than while work is in progress (e.g., a leak discovered weeks after installation).
D
Deductible
The amount you're responsible for paying out of pocket before your insurance coverage applies to a claim.
E
Endorsement
A change or addition to your policy that modifies its standard terms — for example, adding an additional insured or extending coverage to a new location.
Exclusion
Something specifically not covered by your policy. Every policy has exclusions, which are listed in your policy wording.
I
Inland Marine (Tools & Equipment Coverage)
Coverage for tools and equipment, particularly items that move between job sites, against theft or damage.
L
Liability
Legal responsibility for injury or damage caused to another person or their property.
O
Occurrence
A single event, accident, or incident (including continued exposure to similar conditions) that results in a claim. Most GL policies are written on an "occurrence" basis, meaning coverage responds based on when the incident happened — not when the claim is filed.
Occurrence Limit
The maximum amount your insurer will pay for a single claim/incident, as opposed to the aggregate limit for all claims combined.
P
Per-Occurrence Limit
See Occurrence Limit above.
Policy Period
The length of time your policy is in effect, typically 12 months, after which it must be renewed.
Premium
The amount you pay for your insurance policy, usually billed monthly or annually.
Products Liability
Coverage for claims arising from a product you supplied or installed that later causes injury or damage.
Professional Liability (Errors & Omissions / E&O)
Coverage for claims related to professional advice, design errors, or workmanship errors not typically covered under General Liability.
U
Umbrella Policy
Additional liability coverage that sits on top of your existing GL or auto policy, extending your limits once the underlying policy's limit is used up.
W
Workers' Compensation
Coverage for employee injuries on the job, administered provincially (e.g., WSIB in Ontario, WorkSafeBC in BC) rather than through private insurance in most of Canada.