Glossary

In the oil and gas production industry, blowout and cratering refers to uncontrolled eruption of oil, gas, water, or drilling fluid from a well that is in the process of being drilled (blowout) or to the caving in of a well that has already been drilled. Blowouts are generally caused by the penetration of a reservoir that contains gas or oil that is under higher pressure than has been allowed for. Often, the oil or gas catches fire. When a well craters, often the drilling rig itself goes under with the well. Coverage for the insured's liability for damage to property of others caused by blowout or cratering is optional in the commercial general liability (CGL) policy. A specialty coverage—control-of-well insurance—provides coverage for the expenses of bringing a blowout under control, cleaning up any resulting pollution, and damage to the property of the operator.

A blowout prevention warranty is a provision found in oil and gas well drilling equipment coverage forms that makes the use of blowout preventers (high-pressure valves that facilitate control of an oil well) on covered equipment a condition of coverage.

Blue book refers to the regulatory report filed by life, accident, and health insurers in the United States, named for its cover.

A blue plan is a name for either Blue Cross or Blue Shield or an organization usually writing a service rather than a reimbursement plan.

Boards and bureaus in the insurance context is the name given to that part of an insurer's acquisition expense, the amount of premium allocated to pay for participation in rating agencies and for filing policies for approval by regulators.

Board committees are formed by members of a corporate board of directors to address a particular aspect or feature of the corporation. Three of the most common board committees and their responsibilities include (1) audit (overseeing the company's financial, accounting, and internal and external audit functions), (2) nominating (identifying and recruiting new/additional board members and officers), and (3) compensation (recommending appropriate compensation levels for the company's management, as well as compensation for members of the board). Board committees normally consist of two to four members of a corporate board of directors.

The boatowners policy is the most common type of watercraft policy for individuals and families. This policy combines property, liability, medical payments, and uninsured boatowners coverage. It fills the coverage gap found in most homeowners policies, particularly with regard to property coverage.

A truck/tractor operating without a trailer or semitrailer. Sometimes the term "bobtailing" is used interchangeably with the term "deadheading," when the trailer or semitrailer is still attached but is not being used to carry cargo.

Bobtail liability is the term coined to apply to auto liability coverage for an owner/operator after a load has been delivered and while the truck is not being used for trucking purposes. This usually occurs when an owner/operator is operating their vehicle for mobility only (e.g., on the way home) and not in the course of transporting property for the motor carrier under whose operating authority they haul, and on whose liability policy they depend while they are engaged in trucking. The method of providing bobtail liability is a business auto policy (BAP) with the Truckers—Insurance for Non-Trucking Use endorsement (CA 23 09) attached.

Bodily injury (BI) is a liability insurance term that includes bodily harm, sickness, or disease, including resulting death.