Insurance glossary for startups & tech companies

A party added to your policy who is covered for claims arising out of your operations—not their own independent acts.

Admitted carriers are state-regulated and backed by the guaranty fund; non-admitted (surplus lines) carriers offer more flexibility but without that safety net.

Per occurrence is the max per single claim; aggregate is the hard cap on all claims combined for the entire policy period.

A letter grade indicating an insurance carrier's financial strength and ability to pay claims.

A policy or endorsement clause that activates coverage obligations only when required by a signed contract.

A temporary agreement providing coverage until your full policy is issued.

A broker represents you; an agent represents the insurance company.

Business income insurance replaces revenue your company loses while operations are suspended after a covered property loss — such as a fire, flood, or theft that forces you to close temporarily.

The insurance company that underwrites and pays claims on your policy.

Casualty insurance covers financial losses your business causes to third parties — primarily through liability claims for bodily injury, property damage, or professional errors.

The party named on a COI as the recipient of proof of insurance.

A document that summarizes active coverage and limits. It does not change policy terms.

The U.S. interagency committee that reviews foreign investment in American companies for national-security risk.

A demand for payment or defense under your insurance policy, typically triggered by a lawsuit, written demand, or regulatory action against your business.

Claims-made responds to claims first made and reported during the policy period for events after the retroactive date; occurrence responds to any event that occurs during the policy period.

The Department of Defense's framework for verifying that a contractor's IT systems protect sensitive government data.

A property-insurance clause requiring you to insure your property to a set percentage of its value (often 80–100%) or face a proportional penalty on claims.

Commercial property insurance covers physical assets your business owns or leases — equipment, office space, inventory — when they are damaged, destroyed, or stolen.

The rules you must follow for your coverage to apply.

A policy condition requiring you to assist your insurer in investigating and defending a claim.

The U.S. government's official database of contractor performance report cards, used to award future contracts.

The U.S. Department of Defense's high-risk, high-reward research agency, created in 1958 to prevent technological surprise.

The summary page of your policy listing your named insured, limits, dates, and premium.

Deductible and retention are often used interchangeably — both refer to the amount your company pays out of pocket before the insurer covers the rest.

Duty to defend pays your legal costs; duty to indemnify pays the judgment or settlement.

The date your insurance coverage begins.

An amendment that modifies your policy's terms, coverage, or exclusions—and controls how vendor requirements are fulfilled.

A COI proves coverage exists; an endorsement actually changes your policy.

A specific situation or loss that your policy does not cover.

The degree to which your business is vulnerable to a particular risk.

A window after a claims-made policy ends to report claims for events that occurred during the policy.

The U.S. government's standardized security-authorization program for cloud products and services sold to federal agencies.

Coverage that protects a business against financial losses caused by dishonest acts of its own employees, such as theft, fraud, or embezzlement.

A rating that measures an insurer's ability to meet its financial obligations.

Core business insurance that covers third-party bodily injury, property damage, and personal/advertising injury claims.

Long-term, government-wide contracts GSA pre-negotiates with vendors so agencies can buy at set prices without a full bid.

A flexible federal contract vehicle for an indefinite quantity of supplies or services within stated limits over a fixed period.

The obligation to compensate someone for their loss or damage.

A contract where an insurer agrees to pay for covered losses in exchange for a premium.

The person or entity protected by an insurance policy—typically your company (the named insured) plus officers, directors, employees, and any additional insureds added by endorsement.

A D&O exclusion that bars coverage when one insured (e.g., the company) sues another insured (e.g., a director or officer).

The section of your policy that defines what the insurer promises to cover.

The U.S. export-control rulebook governing defense-related technology, hardware, and technical data on the U.S. Munitions List.

A shorthand phrase indicating a business holds the required government licenses and active insurance coverage to operate legally and protect clients.

The financial damage resulting from a covered event.

A third party named on a property insurance policy who receives claim payments directly when insured property is damaged or destroyed.

A formal record of all insurance claims filed on a policy during a specified period, used by underwriters to assess your risk history.

A D&O exclusion that denies coverage for claims brought by shareholders who own more than a specified percentage of the company.

A wrongful, unlawful, or intentionally harmful act—especially by someone in a position of trust such as a director, officer, or public official.

The specific entity listed on the policy as the primary policyholder—with the broadest rights of any insured.

The annual U.S. law that sets defense policy and authorizes Department of Defense spending levels.

A contract requirement for advance notice if a policy is cancelled.

Reporting a situation that might become a claim, before it actually does.

The formal notification you must give your insurer when a claim is made against you.

Pre-approved law firms your insurer uses to defend claims.

The legal agreement that defines what's covered, what's excluded, and your responsibilities.

The maximum amount your insurer will pay for covered claims.

The dates your insurance coverage is active.

The amount you pay for your insurance policy.

A clause requiring your policy to pay first, without seeking contribution from the other party's insurance.

Coverage for events that occurred before your current policy started but are claimed now.

Coverage that protects your business when a product you make, sell, or distribute causes bodily injury or property damage to a third party.

A summary document from your broker presenting one or more quote options.

A carrier's offer to provide coverage at a specific price and terms.

The variables underwriters use to calculate your premium.

Insurance that insurance companies buy to protect themselves from large losses.

A letter from your insurer saying they'll investigate your claim but may not cover it.

The earliest date from which claims-made coverage applies.

The possibility of financial loss from an uncertain event.

Shifting financial responsibility for a risk from one party to another.

A U.S. program that gives small businesses non-dilutive federal R&D funding — no equity or IP taken — to mature new technology.

D&O coverage that protects directors and officers personally when the company cannot or will not indemnify them.

D&O coverage that reimburses the company when it indemnifies its directors and officers for covered claims.

D&O coverage that protects the company itself for securities claims brought against it.

A lower limit within your policy that caps coverage for a specific type of loss.

Insurance placed with non-admitted carriers for risks that admitted carriers won't cover.

A bundle of coverages technology companies typically carry — usually Tech E&O, Cyber, General Liability, and D&O — rather than a single standalone policy.

Coverage that pays for claims made by other people or businesses against you—as opposed to first-party coverage that pays for your own losses.

The process insurers use to evaluate your risk and decide coverage terms.

An endorsement where your insurer gives up the right to recover claim costs from a third party.