Glossary

Pollution is the contamination of an environment by substances regarded as pollutants. Liability from pollution is normally excluded to some degree by the general, auto, and umbrella liability policies. In recent years, insurers have attempted to introduce strict exclusionary language into these policies, making it necessary for insureds to seek coverage under separate "environmental impairment liability" policies.

Suability factor signifies the likelihood of a legally liable insured being sued for alleged injuries or damage to a third party. This factor is determined, in part, by the size of the insured's savings account and stock portfolio, the extent of the real estate holdings, the family income, their profile in the community, and future income. Individuals with a high suability factor nearly always need a personal umbrella policy with at least a $2 million limit.

Ultimate net loss (UNL) is a term used to specify insured damages in an umbrella liability policy. Most umbrella policies include a specific definition of the covered damages encompassed by the term. This will typically include amounts actually payable to claimants in settlement or judgment. If defense and other supplementary payments are included within the policy's limit of liability, they may also be included in the policy's ultimate net loss definition.

That particular part is a key phrase in the property damage exclusion of general liability and some umbrella coverage forms that eliminates coverage for damage to work performed by (or on behalf of) an insured contractor that arises from that work. The language precludes coverage for "that particular part of real property" on which the work is performed. The intent is to exclude the faulty work itself and yet cover resulting damage to work already in place. The phrase has been defined by the courts as "a single item of property which, though composed of many parts, is clearly a unit of property within itself, self-contained and a single item."

Underlyers are insurance policies occupying layers of coverage below the particular policy being referred to. For example, a general liability policy and an umbrella liability policy might be underlyers for an excess liability policy.