One of the fastest ways to get a new customer service rep productive is to stop them from having to interrupt a senior agent every time a client uses a term they don't recognize. This glossary covers the coverage terms a new CSR runs into in their first weeks — each with a plain-English definition and a link to the full explainer, so they can learn on the job. Bookmark it for your team.
Liability & commercial terms
- Additional insured — a party added to a policy by endorsement so the policy's coverage extends to them for liability arising out of the named insured's work.
- Additional insured vs. certificate holder — a certificate holder only gets proof a policy exists; an additional insured gets actual coverage rights. Confusing them is a costly, common mistake.
- Waiver of subrogation — an endorsement where the insurer gives up its right to recover a claim from a third party the insured agreed not to hold liable. Common in contracts.
- Occurrence vs. claims-made — two ways a liability policy decides which claims it covers, based on when the event happened versus when the claim is reported.
- Bodily injury liability vs. medical payments — two different auto coverages for injuries; one is fault-based liability, the other pays smaller medical bills regardless of fault.
- Commercial umbrella — extra liability limits that sit on top of a business's underlying policies.
- CG 20 10 vs CG 20 11 — two common additional-insured endorsement forms with important differences in what and when they cover.
- Liquor liability — coverage for claims arising from serving or selling alcohol.
Homeowners & property terms
- HO-3 vs HO-5 — the two most common homeowners forms; the difference is open-peril vs named-peril coverage on the contents.
- Replacement cost vs. actual cash value — whether a claim is paid without subtracting depreciation (RC) or with it (ACV).
- DP-1 vs DP-3 — dwelling policy forms used for rentals and some non-owner-occupied homes.
- Loss of use / ALE — pays the extra cost of living elsewhere when a covered loss makes a home uninhabitable.
- Personal umbrella — extra liability limits on top of home and auto.
- Flood insurance — why flood is excluded from homeowners and written separately (NFIP or private).
- Wind/hail & hurricane deductibles — separate percentage deductibles that apply to certain storm losses.
- Scheduling valuables — adding jewelry, firearms, or fine art individually for full coverage above the homeowners sublimit.
- Water backup & service line — endorsements for sewer/drain backups and damaged underground utility lines.
Auto terms
- Full coverage vs. liability-only — what 'full coverage' actually means and when liability-only makes sense.
- Gap insurance — pays the difference between what's owed on a vehicle and its value after a total loss.
- SR-22 — a state filing proving a high-risk driver carries required liability coverage (not a type of insurance).
- Non-owner SR-22 — an SR-22 option for a driver who needs the filing but doesn't own a vehicle.
Surety terms
- Surety bond — a three-party guarantee that someone will perform an obligation; it's credit, not insurance.
- Bid & performance bonds — construction bonds that guarantee a contractor's bid and completion of the work.
This is the short list — your full reference library goes deeper on each, and a new CSR who can search it answers clients correctly in seconds instead of putting them on hold. For how to fold it into onboarding, see how to train a new insurance CSR.
For licensed professionals; review and adapt for your state and carriers. Not legal, compliance, or E&O advice.