Action sports and fitness insurance terms

Action sports and fitness insurance terms
December 3, 2018 Andrew Riordan

Risk mitigation, indemnity, subrogation… when people throw words around like this it may sound like they’re speaking another language. In most cases that’s exactly what they want you to think. Many insurance professionals use this language just to mystify the insurance process.

At AMPED Insurance we want all of you to see behind the curtain and understand what all of the terms in your policy mean. Whether skatepark insurance, surf camp or instructor insurance, race track insurance, sports training facility insurance or fitness studio and instructor insurance – Below are some terms that may be used your actions sports and fitness insurance policy.


Actual cash value

The current value of an insured piece of property.


Additional insured

Anyone besides a policyholder who is covered by an insurance policy.


Admitted / non-admitted insurance company

Admitted insurance companies are approved by a state’s insurance department, which means if the insurance company can’t pay a claim, the state can step in to pay it. Non-admitted carriers aren’t backed by the state.



A professional assessment of a property’s value on the current market (including real estate and other types of property).



A way for two parties to end a dispute out of court.


Assessed value

The value of a commercial property as determined by a city hall or a municipal assessor.


Business interruption insurance

A rider or endorsement that can be added to a property insurance or business owner’s policy.



Business owner’s policy

An insurance bundle for small businesses that includes property insurance and general liability insurance.


Business personal property

Moveable business property, such as computers, supplies, and equipment.



Certificate of liability insurance

A document that proves your business has liability insurance.



A formal request for compensation that you file with your insurance provider.



A person who files a claim in order to receive benefits.


Claims adjuster

An investigator often employed by the insurance company to verify property insurance claims.



Coinsurance can refer to two different things: insurance that is provided by more than one insurance company, or coverage rules set by your insurer.


Commercial auto insurance

Coverage for vehicles owned by your business.


Comprehensive general liability insurance

An outdated term for general liability insurance – its use was discontinued in the insurance industry because of its inaccuracy.


Cyber extortion

An online crime in which a hacker threatens to damage your business unless

you pay a ransom.


Cyber liability insurance, first party

Insurance coverage for the cost to respond to a hack or data breach on your computers.


Cyber liability insurance, third party

Liability insurance for businesses sued after their customers are hacked.




The sum of money you, the insured, must pay out of pocket before your insurance benefits kick in.



The party that is sued in a lawsuit.


Digital assets

Digitally stored content (on a hard drive, removable device, or the cloud) owned by an individual or a business.



Employment practices liability insurance

An employer’s responsibility to treat employees fairly and not discriminate against them or violate their civil rights, as interpreted and enforced by the Equal Employment Opportunity Commission (EEOC).


Errors and omissions insurance

Liability insurance that protects you in the event of a professional error, oversight, or act of negligence.


Exclusive remedy

A workers’ comp provision that prohibits injured employees from suing their employer if they are receiving workers’ comp benefits.


Expiration date

The day your insurance coverage ends.


Extended reporting period

An extended reporting period (ERP) is a feature you can add to your professional liability insurance policy that allows you to report claims even after the policy expires.



General liability insurance

Business insurance that protects you from a variety of common third-party claims, including property damage, bodily harm, and personal injury.


Grace period

Extra time after a policy’s expiration date when a small business can still be covered.



Hired and non-owned auto insurance

Auto coverage for rental cars and employee vehicles.


Homeowner’s insurance

An insurance policy that protects your personal real estate.


Host liquor liability insurance

Host liquor liability insurance protects businesses that don’t manufacture, serve, or sell alcohol from the cost of liquor-related lawsuits.




The compensation you owe an injured or damaged party.


Inland marine insurance

Coverage that protects your business equipment and tools in transit.


Insurance agent / broker

People who sell insurance policies – they do not provide insurance.


Insurance company / provider

Entities – also known as insurance providers and insurance carriers – that provide insurance to businesses and individuals.



A person or organization covered by insurance.




A formal decision made about a court case at the end of a lawsuit.



Legal liability

A responsibility to pay debts, which is a part of both criminal and civil law.


Liability insurance

A general term for the type of risk financing that can protect your business when someone files a lawsuit against it.




A way for two parties to resolve a dispute out of court with the help of a neutral third party (the mediator).


Minimum earned premium

The smallest amount of money an insurance company is willing to accept for writing a business insurance policy.



Named perils

Covered losses that are explicitly described in your insurance policy.




Any exposure to risk.



The person who brings a case against another person or entity in a court of law (also known as the complainant).



The amount of money your insurance provider charges you for coverage, usually as yearly or monthly payments.


Professional liability insurance

Liability insurance that covers lawsuits when you are sued for professional errors or omissions.


Proof of loss

A formal statement that you, the insured, send to your insurance provider in the event of a loss.


Property insurance

Insurance coverage that helps businesses replace and repair damaged property.



Qualifying event

Any significant change to your business that affects your insurance needs.



An estimate of your premium cost for a specific type of insurance policy.



Replacement value

The value of purchasing a new replacement for lost or damaged property.



Additional insurance protection you can purchase separately and “tack on” to your primary insurance policy.


Risk management

The method of identifying and minimizing risks that threaten your business.




A voluntary resolution between the parties in a lawsuit.


Stop gap coverage

Insurance that protects business owners from lawsuits filed over workplace injuries. It’s used when coverage isn’t included in a state-run workers’ compensation program.



A way for an insurer to recoup money paid on a claim.



Third party

Someone other than the insured and the insurance provider.



A civil wrong that causes someone unfair loss or harm.



Someone who commits an act – often unintentionally – that harms another person or causes someone an unfair loss.


Triple net lease

A rental agreement in which the tenant pays for building maintenance, property insurance, and property tax in addition to base monthly rent.



Umbrella insurance

A business insurance policy that can help you pay additional claim expenses when a primary policy’s limits are maxed out.



The process that an insurance provider uses to assess and evaluate the risks of potential insurance buyers.



Vicarious liability

The legal framework that allows you or your business to be held financially responsible for another party’s actions or negligence.



Workers’ compensation insurance

Business insurance coverage that helps employers pay for medical expenses in the event that an employee suffers from a work-related injury or illness.



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