# Insurance Glossary

# Insurance Glossary

Plain-English definitions for common contractor insurance terms.

## Additional Insured

**Plain-English meaning:** Another party, usually customer/contractor/owner, is added to receive certain protection under your policy.

**Why TDC cares:** Common requirement before entering jobsites.

**Typical action:** Ask broker to add certificate holder as additional insured where available.

## Waiver of Subrogation

**Plain-English meaning:** Your insurer agrees not to seek recovery from the customer/contractor after paying a covered claim.

**Why TDC cares:** Contractors want to prevent your insurer from coming back against them.

**Typical action:** Confirm policy endorsement and cost with broker.

## Primary and Non-Contributory

**Plain-English meaning:** Your policy responds first and does not require the customer's insurance to contribute first.

**Why TDC cares:** Large contractors use this to keep claims off their own insurance where possible.

**Typical action:** Broker must confirm endorsement wording.

## Occurrence Limit

**Plain-English meaning:** Maximum paid for one claim/event.

**Why TDC cares:** Contractors compare this to their required per-occurrence limit.

**Typical action:** Check exact amount on COI.

## Aggregate Limit

**Plain-English meaning:** Maximum paid during the policy period for covered claims.

**Why TDC cares:** A $1M occurrence policy may have a $2M aggregate cap.

**Typical action:** Monitor aggregate erosion after claims.

## Combined Single Limit (CSL)

**Plain-English meaning:** One auto liability limit shared for bodily injury and property damage.

**Why TDC cares:** Common auto policy limit format.

**Typical action:** Usually shown as $1M CSL or $2M CSL.

## Deductible

**Plain-English meaning:** Amount TDC pays before insurance responds.

**Why TDC cares:** Affects cash exposure after a claim.

**Typical action:** Track by policy, especially equipment and cyber.

## Self-Insured Retention (SIR)

**Plain-English meaning:** Amount TDC must pay/handle before insurer has duty to pay, often more serious than deductible.

**Why TDC cares:** Can create administrative and cash-flow burden.

**Typical action:** Avoid surprises on E&O/cyber/umbrella policies.

## Contractual Liability

**Plain-English meaning:** Coverage for certain liabilities assumed in a contract.

**Why TDC cares:** Construction contracts often include broad indemnity clauses.

**Typical action:** Do not assume every indemnity obligation is insured.

## Completed Operations

**Plain-English meaning:** Coverage for liability arising after work is completed.

**Why TDC cares:** Relevant when deliverables or completed site work are later challenged.

**Typical action:** Confirm CGL includes completed operations.

## Professional Liability / E&O

**Plain-English meaning:** Coverage for financial loss caused by alleged professional mistakes.

**Why TDC cares:** Relevant for mapping, measurements, volumes, reports, processing, and advice.

**Typical action:** Consider quote; avoid using licensed survey language publicly.

## Inland Marine

**Plain-English meaning:** Property coverage for equipment that moves around.

**Why TDC cares:** Drones, payloads, sensors, cameras, and laptops are mobile assets.

**Typical action:** Maintain current equipment schedule.

## Certificate Holder

**Plain-English meaning:** Entity named on the COI to receive proof of insurance.

**Why TDC cares:** Does not automatically make them additional insured.

**Typical action:** Use exact legal name/address from customer.

## Endorsement

**Plain-English meaning:** Policy amendment that changes coverage or adds required wording.

**Why TDC cares:** COIs sometimes reference endorsements; actual policy controls.

**Typical action:** Ask broker for endorsement confirmation if needed.

## Umbrella / Excess

**Plain-English meaning:** Extra limit above underlying policies.

**Why TDC cares:** Often requested in large contracts; not always necessary for small work.

**Typical action:** Track frequency of requests and ROI.