Glossary

Prejudgment interest is interest accruing on the amount of a legal award from the time of the injury or damage to the time the judgment is entered by the court. Prejudgment interest, when awarded as part of a judgment against the insured, is covered by the supplementary payments provision of standard general liability policies.

Preliminary term is term life insurance coverage that is in effect until the policy date is established during the application and underwriting process.

Premises-operations is one of the categories of hazards ordinarily insured by a general liability policy. Composed of those exposures to loss that fall outside the defined "products-completed operations hazard," it includes liability for injury or damage arising out of the insured's premises or out of the insured's business operations while such operations are in progress.

Premises in an insurance context is the term used in a property insurance policy to indicate the location where coverage applies. It is usually described in the policy with a legal address. Premises can also refer to the building or land occupied or owned by an insured.

Premises burglary coverage is the Insurance Services Office, Inc. (ISO), crime form E, CR 00 06. Covers loss of property, other than money and securities, stolen from within the insured's premises or taken from a watch guard inside the premises.

Premises theft and outside robbery coverage form H is Insurance Services Office, Inc. (ISO), crime form (CR 00 09) that covers property other than money and securities for theft from inside the premises and robbery of a messenger away from the premises.

A premium in an insurance context is the amount of money an insurer charges to provide the coverage described in the policy or bond.

Premiums earned refer to the portion of the written premium allocable (usually pro rata) to the time already elapsed under the policy period.

The premium, advance, is charged at the inception of the policy in cases where the final premium of the policy is not determined until the policy has expired; for example, where the policy premium is determined on an exposure base such as payroll that is subject to final audit adjustment. This term may encompass what is known as a "provisional" or "deposit" premium.

Premium audit is an audit of the exposure basis for an insurance policy (i.e., payroll, sales, or vehicle count) after the end of a policy period to determine the actual (audited) exposure for the purpose of making a final calculation of the premium and premium taxes.