Glossary

Breach coaching is the expert assistance provided by an insurer to an insured in responding to a data breach. Breach coaching, which is offered by underwriters of cyber and privacy insurance to their insureds, is a vital service because the more efficiently and effectively a business responds to a data breach in the days immediately following its discovery, the lower its overall loss will usually be.

A breach of an employment contract is a type of claim in which an employee alleges that an employer has breached the terms of an agreement governing the terms of employment, of which there are two basic types: (1) a written employment contract and (2) an implied contract of employment. Virtually no employment practices liability insurance (EPLI) policies cover indemnity payments (i.e., settlements and judgments) involving breach of a written employment contract, and only a handful cover the defense costs pertaining to such claims. EPLI policies do, however, cover both the defense and indemnity costs generated by claims alleging breach of an implied contract of employment. Such claims typically state that an implied contract of employment was established by a letter offering employment, language appearing in an employee handbook, or statements made by a manager/supervisor or as a result of an employee's tenure with a company.

Breach of contract is the material failure to fulfill one's contractual obligations. Insurance policies typically do not cover liabilities arising out of a breach of contract because it is viewed as a business risk within the control of the insured. In some cases, most notably construction defect claims, this has led to extensive litigation over what constitutes a breach of contract versus ordinary negligence.

Breach of warranty (BOW) clause refers to a lienholder's or lessor's interest endorsement that causes the policy to continue to protect the financial interest of a lienholder or lessor even when the insured breaches a condition, thereby voiding coverage. Any loss recoveries under this clause are payable only to the lienholder or lessor.

Break point, in an insurance context, refers to the point at which layers of losses within a captive or risk retention group (RRG) are differentiated as being either "primary" or "excess" losses. For example, a typical break point for a large group captive may be $250,000. Losses above this level are considered "excess," and losses below are considered "primary." The optimal break point for any program must be determined by that program's individual characteristics. There is no "correct" break point.

Broadcasters liability is the legal liability to which radio and television broadcasters are subject. Defamation, invasion of privacy, and errors and omissions (E&O) are among the types of claims alleged against broadcasters. Coverage for this exposure is available under media liability policies.

The broad causes of loss form is one of the three Insurance Services Office, Inc. (ISO), commercial property insurance causes of loss forms. Causes of loss forms establish and define the causes of loss (or perils) for which coverage is provided. The broad causes of loss form (CP 10 20) provides named perils coverage for the perils insured against in the basic causes of loss form (fire, lightning, explosion, smoke, windstorm, hail, riot, civil commotion, aircraft, vehicles, vandalism, sprinkler leakage, sinkhole collapse, volcanic action), plus the following additional perils: falling objects; weight of snow, ice, or sleet; water damage (in the form of leakage from appliances); and collapse from specified causes.

The broad evidence rule is a valuation rule that has evolved in some states and does not adhere to the principle that the traditional measure of actual cash value (ACV) (replacement cost less depreciation) is the sole measure of value at the time of loss. This rule provides for the examination of every standard of value having a bearing on the property under consideration, such as the age of the property, the profit likely to accrue on the property, and the property's tax value. Ultimately, it calls for the selection of that "value," which, in the event of a total loss, will provide complete indemnification and no more.

The broad form comprehensive general liability (BFCGL) endorsement, when attached to pre-1986 standard general liability policies, provided coverage enhancements including blanket contractual liability; personal injury (PI) and advertising liability; premises medical payments; host liquor liability; broad form property damage (PD) liability; and automatic coverage for newly acquired organizations, etc.

Broad form contractual liability insurance is insurance that covers liability transferred in a wide variety of business contracts. This type of coverage is provided on a blanket basis by the broad form comprehensive general liability (BFCGL) endorsement used with the 1973 comprehensive general liability form and within the standard provisions of the 1986 and subsequent commercial general liability forms.