Glossary

Gap financing, also referred to as bridge or interim financing, refers to a short-term loan for the purpose of meeting an immediate financial obligation until sufficient funds to finance the longer-term financial need can be secured. Gap financing carries a higher cost to the borrower and is most appropriately used to meet short-term cash flow needs.

Garagekeepers coverage is provided under a garage policy for auto and trailer dealers, particularly those dealers that maintain a service department or body shop, for liability exposures with respect to damage to a customer's auto or auto equipment that has been left in the dealer's care for service or repair, for example. For other types of auto-related businesses, such coverage is available under the Garagekeepers Coverage (CA 99 37) endorsement. Coverage is contingent on establishing liability on the part of the insured.

Garagekeepers extra legal liability extends the garagekeepers liability policy to provide coverage for damage to customers' automobiles regardless of the legal liability of the insured. The term "extra legal" has been replaced with the term "direct" in modern insurance parlance.

Garage liability insurance covers the legal liability of franchised and nonfranchised automobile, truck, truck-tractor, motorcycle, recreational vehicle, and trailer dealers for claims of bodily injury (BI) and property damage (PD) arising out of business operations. It includes two separate insuring agreements: "who is an insured" provisions and "limit of insurance" provisions—one dealing with garage operations involving the ownership, maintenance, or use of autos and the other dealing with all other garage operations.

A garage policy is a commercial auto policy designed to address the needs of auto dealers. Coverages include garage liability, garagekeepers, and auto physical damage; other coverages are available by endorsement.

A garment contractors floater is an inland marine policy that protects the insured garment manufacturer against damage to or loss of garments on the manufacturer's premises, in transit, or in the custody of contractors or subcontractors.

Generally Accepted Accounting Principles are an accounting method designed to match revenue and expense on a "going concern" basis—that is, assuming an entity continues in business. The principles are developed by the Financial Accounting Standards Board (FASB). For insurers, the American Institute of Certified Public Accountants (AICPA) publishes Audit and Accounting Guides, applying GAAP to an insurance entity.

General Adjustment Bureau is a national loss adjusting agency supported by property insurers that do not have their own nationwide loss adjusting capability.

A general agency system is an insurance marketing system whereby a general agent is delegated responsibility for a geographic territory. Field agents, agents who sell insurance, report to an agency supervisor who reports to a general agent.

General aggregate limit is the maximum limit of insurance payable during any given annual policy period for all losses other than those arising from specified exposures. Under the standard commercial general liability (CGL) policy, the general aggregate limit applies to all covered bodily injury (BI) and property damage (PD) (except for injury or damage arising out of the products-completed operations hazard) and all covered personal and advertising injury. When paid losses in these categories reach the specified aggregate limit, that limit is exhausted and no more losses in any of those categories will be paid under the policy. In other words, once the general aggregate limit is paid out, the only coverage remaining under the policy will be for products-completed operations claims, which are paid out of a separate aggregate.