Common Insurance & Risk Management Terms

Actual cash value

The value of property, less any depreciation.

Appraised value

Value placed on property by a qualified expert.

Auto physical damage

Damage to university-owned motor vehicle. Motor Vehicle Insurance Page

Business interruption

Coverage for lost revenue due to a covered occurrence. Property Insurance Page

Certificates of insurance

Form that evidences insurance including insurer, coverage and limits. Certificates of Insurance Request


A type of physical damage to automobiles resulting from collision with another motor vehicle or other object. Motor Vehicle Insurance Page


A type of physical damage to automobiles not resulting from collision. Motor Vehicle Insurance Page


A specified amount of money that the insured must pay before an insurance company will pay a claim

Fine arts

Assets whose value increases over time due to their rarity or intrinsic value.

Hold Harmless Waiver

Agreement not to hold the university responsible for claims.


Agreement wherein one party agrees to pay for the loss or damage it causes to another.


Legal obligation to reimburse for damages to third parties.

Liquor Liability

Amounts the university is legally obligated to pay to reimburse for damages to third parties arising out of the serving of alcohol.


An adverse accident or event neither expected nor intended.


Amounts charged for insurance coverage. Premium factors include loss experience and exposure. Calculation methodology varies by coverage.

Replacement cost

The cost incurred to replace property with like, kind, and quality.


Proceeds recovered from a third party as recovery for damages or losses incurred by the university.


The deductible amount of an insurance policy.


A term used to denote the exposure to damages involving human or physical assets.


Funds the university sets aside to pay for its losses.

Any proceeds of negotiations or legal action taken against negligent third parties.


A person providing authorized services to the university without compensation.