The players in the insurance market — brokers, carriers, reinsurers, and more. 20 terms to help you understand who does what.
Admitted vs Non-Admitted Carrier
Admitted carriers are state-regulated and backed by the guaranty fund; non-admitted (surplus lines) carriers offer more flexibility but without that safety net.
Also: Admitted Carrier · Surplus Lines Carrier
AM Best Financial Strength Rating
A letter grade indicating an insurance carrier's financial strength and ability to pay claims.
Also: AM Best Rating · Best Rating
Binder
A temporary agreement providing coverage until your full policy is issued.
Broker vs Agent
A broker represents you; an agent represents the insurance company.
Also: Insurance Broker · Insurance Agent
Carrier / Insurer
The insurance company that underwrites and pays claims on your policy.
Also: Insurance Company · Insurance Carrier
Fidelity Bond
Coverage that protects a business against financial losses caused by dishonest acts of its own employees, such as theft, fraud, or embezzlement.
Also: Employee Dishonesty Coverage · Fidelity Coverage · Commercial Crime Bond
Financial Strength Rating
A rating that measures an insurer's ability to meet its financial obligations.
General Liability Insurance (GL)
Core business insurance that covers third-party bodily injury, property damage, and personal/advertising injury claims.
Also: GL · CGL · Commercial General Liability · GL Insurance
Indemnity
The obligation to compensate someone for their loss or damage.
Insurance
A contract where an insurer agrees to pay for covered losses in exchange for a premium.
Insured
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.
Also: Insured Party · Covered Party · Policyholder
Named Insured
The specific entity listed on the policy as the primary policyholder—with the broadest rights of any insured.
Product Liability Insurance
Coverage that protects your business when a product you make, sell, or distribute causes bodily injury or property damage to a third party.
Also: Products Liability Insurance · Product Liability
Proposal
A summary document from your broker presenting one or more quote options.
Quote
A carrier's offer to provide coverage at a specific price and terms.
Reinsurance
Insurance that insurance companies buy to protect themselves from large losses.
Risk
The possibility of financial loss from an uncertain event.
Risk Transfer
Shifting financial responsibility for a risk from one party to another.
Surplus Lines
Insurance placed with non-admitted carriers for risks that admitted carriers won't cover.
Tech Insurance
A bundle of coverages technology companies typically carry — usually Tech E&O, Cyber, General Liability, and D&O — rather than a single standalone policy.
Also: Technology Insurance · Insurance for Tech Companies · Startup Tech Insurance
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.