Glossary

Personal risk management (PRM) is the process of applying risk management principles to the needs of individual consumers and families. It is the process of identifying, measuring, and treating personal risk (including, but not limited, to insurance), followed by implementing the treatment plan and monitoring changes over time.

A personal umbrella policy provides high limits of liability to protect an insured against a catastrophic liability loss. This policy grants liability coverage that stacks on top of the primary liability coverage provided by the insured's homeowners, personal auto, watercraft, and any other scheduled underlying liability policies. It covers bodily injury (BI), property damage (PD), and personal injury (PI), which includes offenses such as libel, slander, false arrest, invasion of privacy, and others. The umbrella policy also fills some gaps in coverage over a specified deductible (often called a retained limit) in the underlying policy.

Personnel risk is one of several categories of loss exposures facing organizations that may be treated with the risk management process. This exposure encompasses losses arising from the death, injury, disability, or departure of employees. Examples include costs to replace a key employee who has died or becomes disabled and benefits mandated under workers compensation laws. Other categories of loss exposures include direct and indirect property risks and liability risks.

Per capita is Latin for "per head or person," which refers to an average count of a population or statistical measure.

The per cause maximum limit under a health insurance plan is the maximum benefits that apply separately to each accident or illness incurred for a covered participant. Generally, policies that have a per cause maximum limit do not have a maximum plan limit.

Per diem business interruption coverage is a form of business interruption insurance in which the insured is entitled to recover a stipulated amount for each day of fully interrupted operations.

Per occurrence limit is the maximum amount the insurer will pay for all claims resulting from a single occurrence, no matter how many people are injured, how much property is damaged, or how many different claimants may make claims. Per occurrence limits are normally used with commercial general liability insurance.

A per occurrence limitation of liability provision is a nonstandard commercial property insurance provision that essentially converts blanket limits to specific, per location limits. This provision establishes that the most the insured can collect for a commercial property loss at a given location is the amount reported for that location on the insured's statement of values. It is sometimes used in combination with another nonstandard commercial property insurance provision: a margin clause. A margin clause softens the negative impact of the per occurrence limitation of liability provision by stipulating that the most the insured can collect for a loss at a given location is a specified percentage greater than 100 percent (such as 110 or 125 percent) of the values reported for that location.

Per person limit is the maximum amount the insurer will pay for one person's injuries. This type of limit is sometimes used with liability insurance. If two people are injured in an auto accident and the at-fault driver's policy has a $50,000 per person limit, the insurer will pay no more than $50,000 to each person for his or her injuries. If one person's injuries are worth $25,000 and the other person's are worth $75,000, the first claimant will receive $25,000 and the second will receive the per person maximum of $50,000 from the insurer.

Per risk excess reinsurance is a method by which an insurer may recover losses on an individual risk in excess of a specific per risk retention. It has both property and casualty applications.