Glossary of Insurance Acronyms

Learn to speak insurance-ese like a professional!

You would think that a complicated industry like insurance would create standardization. Well they have, sort of.  However the definition that you must be sure of is the one defined in your insurance policy.  The definitions differ from insurer to insurer so you must look carefully at your policy.  You will find in our glossary the most common definitions of the words, acronyms, and phrases that we use and see.  We encourage our partner insurers to share their definitions with us to be included in our glossary.  You may note that many insurance terms are not included in this glossary.  It is because we do not address terms for products we do not sell.  Please keep in mind that these are not to be considered legal or contractual definitions.  This page is only a resource for speaking insurance-ese with insurance professionals.  Like any language, insurance-ese has dialects and therefore you may not always be understood by insurance people when using the terms on this page.

1 - on commercial or business auto coverage 1 is any auto coverage.

7,8,9 – on commercial or business auto coverage 7,8,9 is owned, non-owned and hired auto coverage.

ACV – Actual Cash Value settlement option.

AI - Naming someone who is not an insured by policy definition an Additional Insured on the policy.

APIP – An auto insurance term that means Additional Personal Injury Protection. See PIP.

BAP – Business Auto Policy

BI - Bodily Injury

CGL - Commercial General Liability.

CSL - Combined Single Limit of liability coverage when applied to auto insurance. It is an option of coverage that combines the per person, per accident and property damage limits into one limit.

CUP – Commercial Umbrella Policy

Dec(s) – Insurance policy declaration pages.

E&O – Is malpractice insurance or professional liability in its many forms

EPLI - Employment Practices Liability Insurance - EPLI provides protection for an employer and its employees against claims made by current, former or potential employees for actual or alleged discrimination (age, sex, race, disability, etc.), wrongful termination, sexual harassment, and other employment-related allegations.

FDLL – Fire Damage Legal Liability

IM – Inland Marine

NAI – Named Additional Insured – this gives the person or entity named as much protection and in most cases as much authority over the policy as the policy owner. Daniel Rickard believes this is a terrible thing to agree to.

NI - Named Insured

OBEL – Optional Basic Economic Loss – an enhancement to PIP benefits.

P&AI – Personal and Advertising Injury

P&CO – Products and Completed Operations

PD – Property Damage

PI – Personal Injury

PIF - Pay In Full

PIP – Personal Injury Protection – an auto insurance term frequently referred to as “no faulty”

RC – Replacement Cost settlement option

SUM – Supplemental Uninsured Motorist coverage in auto insurance policies.

UM – Uninsured Motorist coverage in auto policies.