Glossary

A batch clause is a limitation provision, used most frequently in products liability and umbrella liability policies, that places coverage for all claims arising out of defective products produced in a single manufacturing run (or batch) within a single occurrence limit. Batch clauses are also found in professional liability policies stating that only one deductible (or retention) applies per wrongful act, regardless of the number of claims resulting from that act.

Beauty contest in an insurance context is a colloquial phrase used to describe a process in which clients have brokers, lawyers, or other firms make competing proposals for the same assignment or business.

A below-target risk (BTR) is the expected value of unfavorable deviations of a random variable from a specified target level.

BEN is the Environmental Protection Agency's (EPA's) computer model for analyzing a violator's economic gain from not complying with the law.

Bench-scale tests refer to laboratory testing of potential cleanup technologies.

Benchmarking is the act of comparing a measurement to a standard. It shows you where you are and helps you decide where you want to go. An example of benchmarking in risk management would be comparing the cost of risk for one organization against a standard for the industry.

A bench trial is a legal proceeding in which a case is tried before a judge rather than a jury and the judge decides both questions of law and questions of fact. Bench trials are often less time-consuming and expensive than jury trials and provide litigants with the procedural and evidentiary protections that may not be available in an arbitration. Furthermore, the fears of excessive jury awards are typically minimized when a dispute is submitted to a judge as opposed to a jury.

A beneficiary is a person named by the insured to receive the proceeds or benefits accruing under a life policy.

Benefits in an insurance context are compensation for loss and other services provided by insurers under terms of insurance contracts.

The benefits payable exclusion is a standard exclusion in fiduciary liability policies precluding coverage for claims involving payment of benefits owed to a claimant if monies are available within the plan to make such a payment. For example, assume that, as a result of a lawsuit or settlement, a claimant is entitled to specific amounts of money held within an insured's pension plan. If such monies can be paid from the plan, it is not the intent of a fiduciary policy to make such payment, because this would have the effect of covering a business risk. On the other hand, if a claimant were to assert a valid claim against a now-defunct or insolvent plan (from which no or only limited funds were available), this exclusion would not preclude payment in such circumstances.