Glossary

Bulk reserves are an amount of reserves established using a formula or loss ratio, rather than specifically identified case reserves.

Bullying is a type of conduct in which one person harasses another person over a time period in a workplace environment.

Bumbershoot is an excess liability coverage for insureds with major wet marine exposures.

Following the purchase of one corporation by another, shareholders of the acquired organization frequently bring lawsuits alleging that the purchase price paid by the acquirer—and thus the price received by the acquiree's shareholders—was too low. In some situations, insureds intentionally negotiate a below-market acquisition price, and then allow insurance proceeds paid in response to the inevitable shareholder objection to supplement that price to achieve a fair-market value in the end. Bump-up exclusions in directors and officers (D&O) liability policies preclude coverage for such losses. These exclusions were developed by insurers who perceive that such claims are essentially business risks and are beyond the scope of intended coverage under a D&O policy.

The burden of proof is the standard by which a fact or a claim must be proven to prevail in a case.

Burglary is theft of property from within a premises by a person who unlawfully enters or exits from the premises.

The burning cost is the ratio of incurred losses within a specified amount in excess of the theoretical amount of premium it would take only to cover losses.

The businessowners policy, commonly referred to as a BOP, is a package policy that provides both property and liability coverage for eligible small businesses.

A business auto policy (BAP) includes auto liability and auto physical damage coverages; other coverages are available by endorsement.

When a business owner dies, business continuation insurance provides money to ensure the business can continue.