Glossary

Photo: Guy Lavigueur

Additional insured

A natural or legal person added  as an additional insured  on the insurance policy of a Named Insured following a specific request from a third party such as a creditor or a landlord. The Insurance coverage enjoyed by the Additional Insured is limited to the activities of the Named Insured, being the one for which the insurance policy is issued.

Biens

Une chose matérielle (de toute nature) qui fait l’objet d’une appropriation privée ou publique.

Biens qui vous sont confiés

Biens qui appartiennent à un tiers et qui sont sous votre soin garde et contrôle. Il est important de couvrir les biens qui vous sont prêtés , loués ou confiés en dépôt car généralement l’assurance du propriétaire des biens ne s’appliquera pas si ceux-ci sont endommagés ou détruits lorsqu’ils sont sous votre responsabilité.

Co-insurance clause

The co-insurance clause, when included in the policy, stipulates that the amount of insurance purchased by the Insured must correspond to the actual cash value ( being the  replacement cost less depreciation for condition, age and other considerations ) or the replacement cost of the property insured or correspond to an amount of insurance  equal  to the percentage specified in the policy, usually 80%, 90% or 100%.

When this percentage is respected the insured avoids being penalized following a loss. Otherwise the insured become co-insurer  and participates in the loss.

Collection

Collectors of art or other object corresponding to a theme such as stamps , coins , antique books, wines, jewelry and other similar objects should be covered by a specific insurance. As The usual home insurance policy have exclusions and limitations that limit the amount of recovery for damage to such property, the collectibles should be protected by  dedicated coverages that recognize their  market  value  following  a loss.

Cyber-liability

This is third party liability arising  from  risks related to the use  of technology, including liability associated with unauthorized access, theft or destruction of data from a computer network or other electronic information system or liability arising from theft of non-public personal information including  the failure to comply with privacy laws or liability arising from the display of electronic content on a website.

Deductible

Money that will be deducted from the amount of indemnity paid by the insurer following a Loss. This amount will remain to be borne by the insured and will not be paid by the Insurer.

Directors and officers liability

If you sit on the Board of a corporation or of a nonprofit Organization you can be held personally and jointly liable with other directors of any acts within the framework of your duties. Under the various provincials and federal statutes the directors have a duty to act with prudence, diligence, honesty, loyalty and in the best interest of the company or of the organization falling which they may be liable for damages suffered.

Directors and Officers Liability insurance protect the personal liability of the directors or of the officers by assuming defense costs and the resulting damage.

Environmental liability

Environmental Liability is based on the principle that he who causes environmental damage should repair the damage. This principal is found in many laws and regulations both provincial and federal. Weather you exercise your activities as a company or as self-employed, it is possible that one  wants to hold you liable for an act or a fault affecting the environment and you must defend yourself accordingly.

The environmental Liability insurance like all civil liability insurances assumes the defense costs and damages if any.

General liability

The Law provides that every person has the duty not to cause injury to others and to compensate them for any personal , material  or financial damages . This obligation relates to all persons  or entities, individuals, corporations, partnerships associations or others.

Liability insurance is to assume on behalf of the insured  defense costs  and damage resulting from this obligation.

Insurance for commissioned work

Art work carried out on behalf of a Public Organization or private Entity or even on behalf of an Individual, requiring insurance coverage from the date of the mandate for its implementation and ending, following delivery and installation of the Work, by the acceptance of the Owner or the Principal. Insurance coverage generally consists of a General Liability policy of the artist who perform the Work.

Insured activities

Activities you perform and which are reported to the insurer. These  activities are the only activities who are insured by the  various insurance  policies issued by insurers. It is therefore important to advise your broker of any change of activities that occur during the current term of your policies

Inventory

Detailed list of tangible property that belongs to you  or which you are responsible. An inventory allows you to prove the existence and value of the property. This inventory will   be necessary to determine the amount of your damages due to theft or other loss. It also serves to validate the amount of insurance  and avoid possible penalties due  to the application of a co-insurance clause or of an insufficient amount of insurance.

Media liability

The infringement of a copyright that of commercial secret, plagiarism, appropriation of ideas, trademark title or slogan infringement are all wrong full acts that may cause your  liability.

Media Liability Insurance covers both the costs of defense and damages you may be required to pay following a media related wrongful act.

Movable property

Movable property that as opposed to fixed property may be moved, transported or used in various locations. Should generally be subject to a specific insurance coverage.

Professional/errors and omissions liability

Any professional activity or any service rendered can cause damages due to a faulty act, negligence or error. Under any circumstances are you immune from a lawsuit blaming  you for such wrongful act.

Professional or Error and omission liability insurance allows an insured to meet its obligation to repair damage caused to others by paying defense costs and the resulting damages.

Property entrusted to you

Property belonging to a third party under your care custody or control . It is important to cover  property loaned, rented ou entrusted to you since usually the property owner’s insurance will not apply if they are damaged or destroyed when they are  your responsibility.

Reconstruction cost

What it costs to reproduce a building  exactly as it was built  . In Insurance it is the cost to restore a building  as it was before a loss .This reconstruction cost do not correspond to the market value  of the building or its Municipal value  or even its book value and does not include the cost of land on which the building is erected.

An evaluation of the cost of construction of a building done by a professional appraiser allows to ascertain the amount of insurance necessary for its reconstruction following a loss.

Report/condition report

Document showing the goods and of the packaging before and after transport to prove the initial state of property in case of breakage or other damage.

Sales register

Register that allows an artist to validate to the insurer the retail price of its creations based on past sales.

Self-employed

The Self-employed worker is someone who works for himself. He can also operate through a sole proprietorship. If the self-employed has an office or a workshop in its residence it is important to notify his broker as certain commercial or artistic activities may be prohibited by his insurer who  may consider these activities an increased risk of loss.

However In some cases it is possible to modify your homeowner insurance to cover your commercial property such as tools, equipment, materials and  inventories and change your liability coverage to include your business or artistic activities.

Work of art

A work of art is a piece of creative work generally done by an artist.