Glossary

Project management professional liability (PMPL) insurance was developed to remedy some perceived problems with additional insured status and owners and contractors protective (OCP) liability insurance. It provides coverage for vicarious liability of the owner, primary architect and prime contractor as well as the contractor's general supervision of the project.

A promisee is the party to which the promise is made in contract law.

A promisor is the party that makes the promise and has a duty to fulfill it in contract law.

Promissory estoppel is a legal dotrine under which courts will enforce an agreement, even where consideration does not exist, when it is necessary to do so to avoid injustice.

A promissory note is a financial instrument used to provide an insurer with financial security necessary to implement a collateralized cash flow program, such as a retrospectively rated insurance plan.

A proof of loss is a formal statement made by the insured to the insurer regarding a claim. This form is especially used in property insurance, so that the insurer may determine its liability under the policy.

A Property Claim Law Associate (PCLA) is a designation offered by the American Educational Institute (AEI). It requires successful completion of both the AEI legal principles and property claims self-study programs.

A Property Claim Law Specialist (PCLS) designation is offered by the American Educational Institute (AEI). It requires successful completion of the AEI property self-study program.

Property damage (PD), as defined in the general liability policy and the homeowners policy, covers physical injury to tangible property including resulting loss of use and loss of use of tangible property that has not been physically injured.

Property insurance is first-party insurance that indemnifies the owner or user of property for its loss, or the loss of its income-producing ability, when the loss or damage is caused by a covered peril, such as fire or explosion.