Glossary

A business continuity plan (BCP) is a written document summarizing steps to take in the event of a disaster—man-made or natural—assessing the business's ability to recover from the loss event and subsequent business interruption.

Business income coverage (BIC) is commercial property insurance covering loss of income suffered by a business when damage to its premises by a covered cause of loss causes a slowdown or suspension of its operations.

A business income worksheet is a form used to estimate an organization's annual business income for the upcoming 12-month period for purposes of selecting a business income limit of insurance.

The business judgment rule is a legal defense used to absolve corporate directors and officers from liability, provided it can be shown that a loss resulted from a seemingly prudent, good faith business decision that simply turned out to be incorrect, rather than a grossly negligent or fraudulent act.

Business legal expense insurance (LEI) is a form of coverage for the expenses associated with defending liability claims against the insured.

Business risk is a risk of loss so closely tied to an insured's way of doing business that it is considered not to be an appropriate subject of insurance coverage; such risks are typically addressed as overhead (i.e., the cost of the loss is included in the price of the business's products or services) or as a subject for loss control.

Business use class is a classification determined by commercial vehicle usage and serves as a part of the rating process in classifying commercial vehicles.

The but for evidentiary standard applies in certain employment discrimination cases. Employees must prove that the employer's discriminatory act was the primary motivation for action taken against the employee.

In first-party property cases involving multiple perils, courts use the "but for" test to determine whether a given peril is a cause-in-fact of the loss.

A buyback deductible is a deductible contained in the basic policy that may be removed by paying additional premium when full coverage is required.