Common Insurance Definitions & Terms
Agent of Record Definition
An agent of record (AOR) is a process that the insurance industry has embraced to give the customer back their power if they are unsatisfied with their agent or the current agent is no longer with the company, by keeping your same plan at the same rate, just moving the coverage to a newer agent. This process can provide an agent or agency the legal right to service or maintain your policy on your behalf for a commission fee.
BOP Insurance Definition
BOP Insurance is an industry abbreviation for the term Business Owner Policy. This type of insurance policy bundles all the basic coverage your company needs including property, interruption and liability risks. Learn more about various business insurances here on our tips & advice blog from liability to health to state mandated workers comp.
Independent Insurance Agent Definition
Independent insurance agents usually represent multiple insurance providers with a wider range of insurance products and sell them according to the specific needs of their customers. They work on the client’s behalf, not the big insurance agencies. Independent agents are well trained and can legally offer their opinion.
The protection arrangement between a government agency or private company and a individual, family, or business to provide compensation for specific damages, losses, death, or illness in return for a monthly premium payment.
Insurance Agent Definition
Insurance agents are employed to sell insurance policies by the insurance agency itself. They work for the insurance company, not the customer.
Umbrella Insurance Definition
Umbrella Insurance is extra liability coverage for both residential and commercial auto, home, office, and more. It’s to protect you or your business against lawsuits, legal fees, and settlements. Umbrella is actually a metaphor for an insurance plan that covers you against a financial storms. Learn more about umbrella coverage and why you might need this type of insurance here on our blog.