The business judgment rule is a common law liability doctrine sometimes used to indemnify directors and officers of a corporation from liability, provided that it can be shown that losses resulted from a seemingly reasonable, good faith business decision that simply turned out to be wrong, and not than gross negligence or fraud.
Business legal expenses insurance is a cover for the costs associated with the defense of liability claims to the insured. Does not cover claims defense costs that would be insured under a civil liability policy or that would not be tax-deductible expenses.
Business risk is the risk of loss so closely related to the way the insured conducts business that it is not considered to be a suitable subject of insurance coverage; such risks are usually treated as overheads (i.e., the cost of the loss is included in the price of the enterprise’s products or services) or as a matter of loss control. The cost of replacing a defective product or reworking a defective work is a classic “business risk” and is therefore excluded from most liability policies.
A commercial use class is a vehicle usage classification used in classifying commercial vehicles. There are three classifications of commercial use: services that do not include the transportation of any property other than tools, equipment and supplies to and from work; retail trade, which includes the transportation of property to and from households; and commercial, which applies to any other mode of transport, except for service and retail.
The Business Owners Policy (BOP) is a comprehensive policy that provides property and liability insurance for eligible small businesses. BOPs are written on special cover forms that tend to look very similar to their monolinear ownership and liability counterparts, but they tend to have some unique features that make them especially beneficial to eligible businesses. Both the American Association of Insurance Services (AAIS) and the Insurance Services Administration, Inc. (ISO) offer BOP programs for use by their member insurers. In addition, many insurers have their own PB programs.
But the standard of proof is the standard of proof that applies in certain cases of employment discrimination. (Whether the standard of proof applies depends, other than, on (1) the specific jurisdiction in which the case is brought and (2) the precise type of discrimination alleged.) Under this standard, employee plaintiffs must prove that the employer’s discriminatory act against whom sued (for example, dismissal, transfer to another position, demotion) was the main factor motivating the specific actions of the respondent employer. For example, suppose an employee is fired due to poor performance that has been documented in the previous 6 months. At the exit interview, the company’s HR manager refers to the employee as “one of our older employees.” Under the “except” standard of proof, the employee must prove that he was fired primarily because of his age, and not as a result of poor performance. While the remark that he was an “older worker” might be discriminatory in itself, it would still not be sufficient to prove discrimination if the worker’s poor performance was the employer’s primary motivation for firing the worker. Employers prefer the “except” standard because it establishes a relatively high level of evidence in support of a discrimination case.
The if not test is used in first party property cases involving multiple perils, courts use the if not test to determine if a given peril is the actual cause of the loss. To do this, the courts conduct a “thought experiment” and imagine what would happen if one of the dangers did not occur. If the loss would still have occurred with or without the remote hazard, then the remote hazard fails the if not test. This means that the eliminated hazard is not actually the actual cause of the loss, so it cannot be selected as the immediate cause.
A sale and purchase agreement is an agreement between the members of a firm that provides for the continuation of business through an agreement whereby each principal agrees that, in the event of his or her death, his or her property will sell its interest back to the owner. business entity for a predetermined amount. The amount can be calculated as a fixed amount or as a variable amount, depending on business factors. The agreement is usually funded by life insurance.
A redemption deductible is a deductible contained in the base policy that can be removed by paying an additional premium when full coverage is required.
A buyout settlement clause is a provision found in media liability insurance policies that allows the policyholder to opt out of settling a claim for an amount offered by the insurer and agreed with the claimant. The clause allows the insurer to offer this amount to the insured, thereby “buying out” the claim. At this point, the policyholder takes full control of the case, bearing the risk that the final settlement and defense costs will exceed the amount of the ransom. If the case is resolved for a smaller amount, the policyholder can keep the difference.