Glossary

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.

Often referred to as "forever chemicals,” perfluoroalkyl substances (PFAS) are a large group of synthetic chemicals widely used in various consumer products since the 1950s. They can be found in everyday items such as food packaging, stain-resistant carpets, nonstick cookware, and water-resistant clothing. PFAS are highly resistant to environmental degradation. Studies have shown that some types of PFAS can accumulate in the bodies of humans and other animals. People are typically exposed to PFAS by consuming PFAS-contaminated water or food, breathing air containing PFAS, or using any of the wide array of consumer products made with PFAS. Repeated exposure can potentially lead to increased blood levels of PFAS over time. Research conducted in 2023 by the National Institute of Environmental Health Sciences (NIEHS) shows links between exposure to PFAS and adverse health outcomes such as metabolism, pregnancy, immune function, and (in children) cognitive and neurobehavioral development.

Policy territory refers to insurance policy provisions that specify the geographic area in which coverage applies. With property and inland marine insurance the territory will usually specify where the property must be located when damage occurs for the policy to apply. Similarly, liability insurance will generally specify where the injury or damage must occur for coverage to apply. Some liability insurance policies may specify a broad territory for coverage but require that the suit must be made in a more restricted territory. For example, an umbrella liability policy might provide coverage worldwide but only if the claim or suit is brought in the United States.

Personal injury coverage is found under the commercial general liability and homeowners policies. This coverage pertains to a category of insurable offenses that produce harm other than bodily injury (BI). As covered by the 1986 commercial general liability (CGL) policy, PI includes: false arrest, detention, or imprisonment; malicious prosecution; wrongful eviction; slander; libel; and invasion of privacy. Also addressed in the homeowners policy. Under umbrella liability insurance, a broad category of insurable offenses that includes both BI and the offenses defined as "personal injury" in CGL policies.

Pollution is the contamination of an environment by substances regarded as pollutants. Liability from pollution is normally excluded to some degree by the general, auto, and umbrella liability policies. In recent years, insurers have attempted to introduce strict exclusionary language into these policies, making it necessary for insureds to seek coverage under separate "environmental impairment liability" policies.