Braley Wellington Group FAQs
Answers to FAQs About Insurance in Central Massachusetts
Insurance comes with its own language, and the decisions you make about coverage have real consequences. At Braley Wellington Group, we want you to feel confident navigating both. Below you’ll find definitions of common insurance terms and answers to frequently asked questions about personal and commercial insurance in Central Massachusetts. If you don’t find what you’re looking for, our agents are happy to help.
Glossary of Common Insurance Industry Terms
The insurance industry has its own vocabulary, and knowing the terms makes it easier to read your policy, ask the right questions, and make confident coverage decisions. Here are definitions of the most common insurance terms you’re likely to encounter.
Accident
An accident is an unexpected or chance event that could not reasonably be prevented.
ACV
Actual cash value (ACV) is the cost of replacing damaged or lost property with comparable property minus any depreciation.
Actuary
An actuary is an insurance professional who is an expert in analyzing risk in order to calculate insurance premiums and dividends.
Adjuster
An adjuster is an insurance professional who investigates and/or negotiates insurance claims.
Admitted Company
An admitted company is the insurance company that is authorized and licensed to perform services in a certain state.
Agent
An agent is a licensed professional who guides clients in selecting the right insurance products for their needs and goals, and negotiates competitive rates on behalf of their client.
Beneficiary
A beneficiary is someone designated to receive benefits from an insurance policy.
Binder
A binder is a temporary agreement or policy document that can serve as proof of coverage.
Bodily Injury
Bodily injury is any physical injury to a person, including death.
Cancellation
Cancellation is the termination of an insurance policy prior to its expiration date by either the insurer or insured.
Carrier
A carrier is the insurance company that underwrites and issues insurance policies. Carriers are distinct from independent agencies, which represent multiple carriers to find the best coverage and rates for their clients.
COI/COC
A certificate of insurance (COI) or certificate of coverage (COC) is written or printed proof of insurance coverage for an individual, family, group, or business.
Claim
A claim is an insurance policyholder or the insured’s request for payment for a loss.
Comprehensive Coverage
Comprehensive coverage is a type of auto insurance that covers damage to your vehicle from non-collision events, including fire, theft, vandalism, weather damage, and falling objects.
Coverage
Coverage is the specific areas of protection offered by your insurance policy.
Covered Event
A covered event is a specific situation or occurrence that is defined in an insurance policy that triggers the payout of benefits, protection, or obligations on the part of the insurer.
Declarations Page
The declarations page or dec page is a summary of your information, your property and/or assets, your coverage level(s), and your premium amounts.
Deductible
The deductible is the amount of money you are personally responsible for after a loss before your insurer will begin paying out or reimbursing you.
Endorsement
Also known as a rider, this is an addition to an insurance policy to expand coverage, or a change made to an insurance policy.
Effective Date
This is the date on which your insurance coverage begins.
Exposure
Your exposure is your risk of potential loss.
Incurred Loss
This is any loss that occurs, whether it has been paid out or reserved.
Insurance
This is a contract between the insurer and insured in which the insurer agrees to compensate the insured for damages or losses from covered events in exchange for specific scheduled premiums.
Insured/Insurer
The insured is the person, business, or organization that is covered by an insurance policy. The insurer is the organization or agency that sells insurance policies.
Liability
This is an individual or company’s legal responsibility for injury, damage, or financial loss caused to others.
Limit
The limit is the maximum amount paid out by an insurance policy.
Loss
A loss is any damage, injury, or financial hardship.
Policy
This is a legally binding contract between the insurer and insured that outlines or details the level and terms of insurance coverage, including clauses, reminders, endorsements, and renewals.
Premium
Your premium is the monthly, quarterly, or annual amount you pay for your insurance coverage.
Replacement Cost
This is the cost to replace a damaged or lost item without a deduction for depreciation.
Rider
See Endorsement.
Risk
Your risk is your level of uncertainty regarding financial loss or damages.
Underwriter/Underwriting
An underwriter is a person who evaluates an individual or business’ level of risk and determines insurability. Underwriting is the process of evaluating the risk of insuring an individual or company and determining whether to accept that risk.
Warranty
A warranty is a statement of fact offered by the insured that is included in the insurance contract.
FAQs About Individual or Personal Insurance
What is personal insurance, and what does it cover?
Personal insurance is an insurance policy or policies for individuals rather than groups or businesses. It is designed to protect you from financial losses due to unexpected events, like theft, vandalism, fire, storms, and accidents. It includes insurance products like auto, home, renter’s, umbrella, flood, motorcycle, boat, and recreational vehicle insurance, among other options. Your coverage depends upon the policy you choose, and may include compensation for damages including repairs, medical bills, lost wages, and more.
How do I know what insurance protection I need for my home or property?
The best way is to work with an experienced independent insurance agent. A good agent will assess your property, review your personal belongings, and discuss your lifestyle and risk tolerance. From there they can match you with policies that cover the right areas at competitive rates, without paying for coverage you don’t need.
Am I required to have homeowner’s insurance in Massachusetts?
There is no law in Massachusetts that requires you to hold a homeowner’s insurance policy. However, your home is one of your biggest investments, and it is in your best interest to protect this investment by purchasing a homeowner’s insurance policy to safeguard your personal assets and finances from unexpected events and accidents
What is renter’s insurance, and why should I get it?
Renter’s insurance protects your personal belongings against theft, vandalism, fire, and other covered events. It can also cover temporary living expenses and replacement costs if something happens to your rental unit. Your landlord’s policy covers the building, not your belongings, so renter’s insurance fills that gap.
Do landlords in Massachusetts require renter’s insurance?
A landlord can legally require tenants to hold renter’s insurance policies as a term of their rental agreement. However, not all landlords do so.
FAQs About Business or Commercial Insurance
What different types of commercial insurance are available?
Common types include general liability, commercial property, commercial auto, workers compensation, cyber liability, professional liability, business owners policy, directors and officers, employment practices liability, and environmental insurance. The right combination depends on your industry, business size, and specific risk profile. A BWG agent can help you identify the coverage types that make the most sense for your business.
What is cyber liability insurance, and why do I need it?
Cyber liability insurance protects your business from a financial loss due to a cyber attack. This could include a data breach, digital disruption, hacking or phishing, ransomware, or other cybersecurity issues. Your policy can include coverage for forensic investigations, legal fees, customer notifications, lost income, and ransom payments. Holding this type of policy can help you protect your reputation and recoup financial losses caused by cyber incidents.
Is business insurance required by Massachusetts law?
Massachusetts requires businesses to carry workers compensation insurance if they have employees, as well as commercial auto insurance for any vehicles used for business purposes. Beyond these requirements, additional coverage like general liability or professional liability may be required by clients, landlords, or licensing bodies depending on your industry.
Do I need commercial insurance for a home-based business?
Yes, it is strongly recommended to purchase a commercial or business insurance policy for a home-based business. Your standard renter’s insurance or homeowner’s insurance policy will not provide enough coverage for any business-related risks that you are taking on. Business insurance will include coverage for business liability, lost income, and business vehicles.
What is a Business Owner’s Policy or BOP?
A BOP bundles three essential commercial coverages into a single, cost-effective policy: commercial general liability, commercial property, and business interruption insurance. It’s designed for small to mid-sized businesses and is typically less expensive than purchasing each coverage separately.
Request a Personalized Insurance Quote Today
Still have questions? Our agents are happy to walk you through your options. When you’re ready, Braley Wellington Group has five conveniently located agencies across Central Massachusetts serving individuals and businesses throughout greater New England. Request a quote online or call the agency nearest you to get started.
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