Glossary

A back-to-back deductible refers to a deductible arrangement under which the deductible under the policy equals the policy limits.

Backdated liability insurance is coverage procured for claims after a loss event has actually happened. This type of coverage is offered when the amount of the claim is very uncertain and potentially long delays in payment may result. The premium charged by the insurer, coupled with its investment value, is calculated to be sufficient to cover all the claims from the incident. This is not a commonly available type of coverage.

Backhauling refers to a trucker's practice of hauling certain cargo one way and, on the return trip, hauling a different cargo or cargo of an unknown type or kind for a fee. Returning with a load of cargo for a fee can save on costs, since the return trip must be made by the trucker regardless.

Back pay constitutes damages claimed by a former employee representing wages and benefits that would have been paid to the former employee from the time the employee was terminated up to the time in which a claim is settled or a judgment is rendered. For example, if an employee is wrongfully terminated on January 1, 2027, a jury award on January 1, 2029, would encompass 2 years of "back pay." The majority of but not all employment practices liability insurance (EPLI) policies include "back pay" within their definitions of "covered damages."

Bad faith is the term describing blatantly unfair conduct that exceeds mere negligence by an insurance company. For example, a bad faith claim may arise if an auto liability insurer arbitrarily refuses to settle a claim within policy limits, where an insured's liability is incontrovertible. Bad faith damages, also known as extracontractual damages, are often substantial. They frequently exceed the limits of the insurance policy that is the subject of the claim.

A bailee is a person or organization to which possession of the property of others has been entrusted, usually for storage, repair, or servicing. Except for policies issued expressly for such purposes, most property policies specifically prohibit coverage for benefit of a bailee.

Bailee coverage is inland marine coverage on property entrusted to the insured for storage, repair, or servicing. It is typically purchased by businesses such as dry cleaners, jewelers, repairers, furriers, etc.

Balance is a reinsurance underwriter's benchmark that measures premium volume against the limit exposed under a reinsurance agreement.

Balance billing is the practice of billing injured employees for the portion of medical bills that the employer or the insurer refuses to pay. This practice is banned in all but a few states.

Ban-the-box legislation requires that employment application questions relating to most types of criminal convictions be removed from applications and/or not asked of an applicant until either a second interview or a conditional job offer is made. There are two rationales underlying ban-the-box legislation. First, roughly 70 million people have some form of criminal record. Potentially excluding (or even impairing the chances of) so many from participating in the workforce would have serious negative economic and personal consequences for a vast number of individuals. Second, it is almost universally acknowledged that a criminal conviction makes it considerably more difficult to secure employment. This, in turn, increases the probability that a person recently released from prison will be unable to find a job, raising the likelihood of that individual returning to criminal activities and, ultimately, to prison. Numerous states, as well as cities and counties, have adopted ban-the-box legislation.