Glossary

A greenmail exclusion eliminates coverage under a directors and officers (D&O) liability policy for suits alleging damages arising out of the purchase of (or offers to purchase) company stock at above-market prices from stockholders believed to pose a takeover threat.

Greenwashing occurs when a firm conveys a false impression or misleading information about the environmental soundness of their products or services. Greenwashing involves making an unsubstantiated or overstated claim that could be interpreted as a ploy to deceive consumers into believing that a company's products or services are environmentally friendly or have a greater positive environmental impact than they actually do.

A green building describes a residential or commercial structure that is built in a manner that promotes energy conservation, uses environmentally friendly construction products in an efficient way, and creates a healthy place to live or work. Examples of green building techniques and processes include the use of geothermal heat pumps, rainwater collection, and radiant ceilings. Many of these technologies can be used for new or existing properties. The Leadership in Energy and Environmental Design (LEED) Green Building Rating System establishes criteria for "green buildings" in the construction industry.

Green upgrades coverage is a property insurance endorsement or provision that adds coverage for the increased cost of repairing or replacing covered property damaged by a covered cause of loss using materials and methods that are recognized as being "green"—that is, better for the environment due to energy efficiency, sustainability, etc.

Gross cessation occurs when a reinsurer assumes 100 percent of the risk covered by a policy issued by an insurer. An example of this is when a captive insurer assumes all of the risk written for its parent by a "fronting company" and the captive then places reinsurance above its net retention.

Gross combination weight (GCW) is the value specified by the manufacturer as the maximum loaded weight of a truck/tractor plus the trailer or semitrailer designed for use with the truck tractor. In the absence of a value specified by the manufacturer, GCW will be determined by adding the GVW of the power unit and the total weight of the towed unit and any load thereon.

Gross domestic product (GDP) is the total market value of all final goods and services produced within a country during a given period. GDP per capita is often used to assess a given country's standard of living.

Gross earnings coverage is a type of business interruption insurance covering the insured's reduction in gross earnings suffered as a result of a direct damage loss. For a nonmanufacturer, gross earnings are essentially total sales less the cost of goods sold. For a manufacturer, gross earnings are the sales value of production, less cost of raw stock from which the production is derived. Included in this coverage are profits, continuing expenses, management payroll, and ordinary payroll.

Gross loss reserves are case reserves and incurred but not reported (IBNR) losses before reinsurance credits or offsets.

Gross negligence is the willful or reckless disregard to the duty of care and complete disregard for the safety and well-being of others. It is more than simple inadvertence, but it is just shy of being intentionally evil. The definition of gross negligence often varies from state to state.