Business Insurance Glossary

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Salvage

Sometimes also referred to as 'scrap value', salvage value is the residual value of damaged property. After a total loss of property, the salvage value will be subtracted from any loss settlement if the insured retains the damaged property.

Scheduled property

Listing specific personal property for a stated insured value. This is usually considered for valuable items that are subject to limited coverage.

Solar flare

A solar flare is a violent explosion in the Sun's atmosphere with an energy equivalent to tens of millions of hydrogen bombs. Solar flares take place in the solar corona and chromosphere, heating the gas to tens of millions of kelvins and accelerating electrons, protons and heavier ions to near the speed of light. They produce electromagnetic radiation across the spectrum at all wavelengths from long-wave radio signals to the shortest wavelength gamma rays. Solar flare emissions are a danger to orbiting satellites, manned space missions, communications systems, and power grid systems.

Storm Surge

A storm surge is an onshore rush of water associated with a low pressure weather system, typically a tropical cyclone.  Storm surge is caused primarily by high winds pushing on the ocean’s surface.  The wind causes the water to pile up higher than the ordinary sea level.  Storm surges are particularly damaging when they occur at the time of high tide, combing the effects of the surge and the tide.

Subrogation

The circumstance where an insurance company takes the place of an insured in bringing a liability suit against a third party who caused injury to the insured.

Subsidence

Movement of the land on which property is situated. A structure built on a hillside may slide down the hill due to earth movement caused by heavy rains.

Surety bond

An agreement in writing where one party (surety) agrees to guarantee the performance of a second party (principal) to a third party (obligee).

Surplus Lines Tax

A tax paid by the insured on insurance placed with surplus lines carriers. It is collected by the agent and paid to the state.