Business Insurance Glossary

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FEMA

Federal Emergency Management Agency - A former independent agency that became part of the new Department of Homeland Security in March 2003 - is tasked with responding to, planning for, recovering from and mitigating against disasters.

Fidelity bonds

This covers business owners for losses due to dishonest acts by specific named people, usually their employees.

Fiduciary

A person who is trusted to act on someone else's behalf, generally in a financial capacity.

Fiduciary liability

Provides protection to a person or organization acting within a fiduciary duty to another party against liability claims for breach of their fiduciary duty.

Field adjuster

A claims representative works outside the office and conducts accident scene investigations, damage inspections and face-to-face meetings with policyholders and third-party claimants.

Fine arts coverage

Special property coverage for works of art, such as paintings, glass sculptures, or statues that are often not covered in a basic property policy.

Fire

Combustion sufficiently rapid to produce spark, flame, or glow. Fires can be considered either "hostile" or "friendly. Hostile fires are unintentional, uncontained, and often cause injury or damage to property. Friendly fires are created with intent, and are controlled throughout their duration.

Fire legal liability coverage

Protection from liability if you rent space and you cause a hostile fire that damages the building.

Fleet policy

An insurance contract covering a number of automobiles (usually five or more) that are owned by a single insured. Sometimes the policy may have a provision to extend automatic coverage for newly acquired vehicles when they are reported to the insurer within a specified period of time.

Floodplain

A land area adjacent to a river, stream, lake, estuary or other water body that is subject to flooding.  These areas, if left undisturbed, act to store excess floodwater.

Forgery or alternation coverage

This type of insurance covers losses sustained through forgery or alteration of outgoing negotiable instruments made or drawn by you, or drawn on your account(s), or made or drawn by one acting as your agent. This includes loss caused by any of the following:

  • Checks or drafts made or drawn in your name, payable to a fictitious entity
  • Checks or drafts, including payroll checks, executed through forged endorsements
  • Alteration of the amount of a check or draft