Glossary

The bodily injury (BI) by accident—policy limit—is the most the insurer will pay under part two of the workers compensation policy, employers liability, for all claims because of BI to one or more employees from any one accident. This limit applies regardless of how many employee claims or how many related claims (such as a loss of consortium suit brought by the injured worker's spouse) arise out of the accident.

Bodily injury (BI) by disease—each employee limit—is a policy limit within part two, employers liability, of the workers compensation policy establishing the most the insurer will pay for damages due to BI by disease to any one employee.

The bodily injury (BI) by disease—policy limit—is the most the insurer will pay under part two of the workers compensation policy, employers liability, for all claims because of BI by disease during the policy period, regardless of the number of employees who sustain BI by disease. In the event the policy is for a period longer than 1 year, the limit is reinstated for each subsequent 12-month period.

Boilerplate language is widely used, standard clauses or provisions that are often found at the end of a contract or in the contract's fine print. Certain boilerplate provisions in consumer contracts are often unenforceable because they are deemed unconscionable, especially when the term is too one-sided in favor of the merchant. Boilerplate provisions in business contracts can be negotiated and tailored to meet a party's specific contracting requirements.

A bond is a three-party contract under which the insurer (the surety) guarantees another's conduct for the benefit of a third party. Bid bonds, payment bonds, and performance bonds are the most common type of surety bonds, and fidelity bonds are a common form of crime bond. The principal (i.e., the party paying the bond premium) is also called the obligor (i.e., the party with the obligation to perform). If there is a default, the issuer (i.e., surety/insurer) pays the loss of the third party (the obligee). The obligor must then reimburse the surety for the amount of loss paid.

A "bondability letter" is provided by a surety to potential obligees in connection with the prequalification process to verify that the principal will be able to provide the required bond for the project. Bondability letters typically do not say what the credit line is. However, they might state that the principal is able to obtain a bond for the identified project or that the principal is able to obtain a bond up to a stated amount.

Bonding is the process by which bonds are written, which typically includes an in-depth review of the obligor.

Book value refers to the value of an organization's assets as carried on the balance sheet in accordance with generally accepted accounting principles (GAAP). The book value for real and personal property is typically the original cost of the property less depreciation. The amount deducted for depreciation is calculated mathematically and may not relate to the actual condition of the property. Since book value is based on the original purchase price and an arbitrary depreciation schedule, it should never be relied on to establish insurable values.

Boom coverage is physical damage insurance coverage for the boom of a crane, generally added as an endorsement to the contractors equipment floater. The floater normally contains an exclusion for booms over a specified length while in operation unless the damage is caused by a named peril. The policy may be amended to provide coverage for the boom while not operational, thereby enlarging the scope of coverage.

A bordereau is a report providing premium or loss data with respect to identified specific risks. This report is periodically furnished to a reinsurer by the ceding insurers or reinsurers.