Glossary

Bulk reserves are an amount of reserves established using a formula or loss ratio, rather than specifically identified case reserves. The insurer records movements in losses in aggregate for a period. Used with a loss portfolio transfer.

Bullying is a type of conduct in which one person harasses another person over a time period in a workplace environment. Bullying is characterized by a pattern of deliberate, hurtful, and menacing behaviors. Bullying can have two aspects: physical —such as making intimidating physical threats, pushing, shoving, and invading an individual's personal space; or psychological —such as emotional intimidation that is mostly covert, including joking or initiation rites that may mask sadistic behavior. Employees who claim to have been bullied by other employees are increasingly suing employers. Bullying has become so common that a majority of states have passed anti-bullying legislation.

Bumbershoot is an excess liability coverage for insureds with major wet marine exposures. The policy covers both nonmarine and maritime liability exposures—that is, protection and indemnity, general average, collision, sue and labor, and general liability hazards.

The burden of proof is the standard by which a fact or a claim must be proven to prevail in a case. The burden of proof must typically be borne by one party or another. It is almost always the employee in workers compensation cases.

Burglary is theft of property from within a premises by a person who unlawfully enters or exits from the premises.

The burning cost is the ratio of incurred losses within a specified amount in excess of the theoretical amount of premium it would take only to cover losses.

The businessowners policy, commonly referred to as a BOP, is a package policy that provides both property and liability coverage for eligible small businesses. BOPs are written on special coverage forms that are generally very similar to their monoline property and liability form counterparts, but they typically have some unique features that make them especially advantageous for businesses that qualify. Both the American Association of Insurance Services (AAIS) and the Insurance Services Office, Inc. (ISO), offer BOP programs for use by their member insurers. Also, many insurers have their own BOP programs.

A business auto policy (BAP) includes auto liability and auto physical damage coverages; other coverages are available by endorsement. Except for auto-related businesses and motor carrier or trucking firms, the BAP addresses the needs of most commercial entities as respects auto insurance.

When a business owner dies, business continuation insurance provides money to ensure the business can continue. That money might be used to allow a surviving partner or joint owner to buy the deceased's portion of the business from their estate. The estate and surviving family may not want the business, yet they need the money. Life insurance provides the money to allow that to happen.

Business continuity management (BCM) is the integrated approach to business continuity planning, emergency response, and crisis management. It involves the development and management of strategies, plans, and actions that provide protection or alternative means of operation for those business activities or processes that, if interrupted, could threaten corporate survival.