Glossary

Understanding insurance terms

We at Butler Vet Insurance know the language used by the insurance industry can be confusing. We want to make sure that you clearly understand your options and know precisely what you’re paying for.

Here are some terms we use for types of coverage. There are also a variety of other terms that might be unfamiliar to you. We hope this glossary helps make the world of insurance easier to understand.

Additional Living Expenses
If you can’t live in your home because of a covered loss, your insurance company may pay the necessary increase in living expenses while damage is assessed and your home is repaired or rebuilt.

Broad Form Liability Coverage
Helps protect you from expenses related to injuries or property damage you or your watercraft cause in an accident. Some policies also cover certain accidental fuel spill liabilities and wreckage removal.

C.L.U.E.
C.L.U.E. (Comprehensive Loss Underwriting Exchange) is a claims history database created by ChoicePoint that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy. It typically contains up to five years of personal auto or personal property claims history.

You can order a C.L.U.E. report:

LexisNexis Personal Reports
Call toll free 1-866-312-8076

Or you can request a copy from the seller of a home you are purchasing.

Collision Coverage
Pays to repair your auto, classic auto, motorcycle, RV damages caused by an accident. Your agent can help you determine the limits you need based on the agreed value of your vehicle.

Comprehensive Coverage
Pays to repair or replace your vehicle if it is stolen, vandalized or damaged in some way other than in a collision. May include loss from fire, cracked windshields, floods, falling objects, and wind.

Custom Parts & Equipment Coverage
Many motorcycle owners like to customize their rides, and some policies pay for customized parts and equipment, often at no extra charge. Ask Butler & Associates for details.

Deductible
When you get insurance, you agree to pay up to a certain amount out-of-pocket in case of a loss. This amount is called your “deductible.” The deductible you choose often affects how much you pay for your premium. For example, a higher deductible usually means a lower premium. In the case of a covered loss, you’ll only be required to pay your deductible, and the insurance company usually covers the excess, up to the applicable limit for that loss under your policy.

Emergency & Roadside Assistance
For auto, boat and personal watercraft, emergency assistance pays for the cost of towing or emergency service. For RVs, it also covers housing and transportation costs if your RV becomes uninhabitable and covers the loss of personal property in your RV. Some policies also provide roadside assistance for motorcycles.

Excess Liability
Sometimes used interchangeably with "umbrella", "excess liability" refers to extended liability coverage. This coverage is meant to supplement your insurance coverage if the damages exceed your liability coverage. Be sure to talk to Butler & Associates about what your excess liability covers.

Fidelity Coverage
Companies and businesses often purchase this coverage to protect them against loss from employee dishonesty (such as theft of money, equipment, or other assets).

Identity Theft
Identity theft occurs when someone steals your personal information and uses it to open accounts or incur charges without your permission. Thieves can access your personal information in a variety of ways, such as stealing your personal mail, your wallet, or hacking your computer files. The thief then uses your identity to rack up debt in your name or perhaps to issue fake IDs. For more information on identity theft and tips on prevention visit the FTC’s Identity Theft Site.

Indemnity
Providing indemnity means to financially restore someone after a loss, through payment, repair or replacement.

Insurance Score
An Credit Based Insurance Score (CBIS) is derived from information on your credit report. It is a number that measures likelihood of having an insurance claim—not a measure of credit worthiness. Insurers use CBIS along with a number of other factors, including driving records, claims history, and the type of home or vehicle owned, to evaluate new and renewal auto and homeowner insurance policies.

Most states have rules about how credit information can be used in insurance. Contact your state’s Department of Insurance for the latest information on your state’s rules.

Medical Coverage (Home)
Covers medical expenses for guests if they are injured on your property, and in certain cases covers people who are injured off of your property. It does not cover healthcare costs for you or other members of your household.

Medical Coverage (Auto, Boat & Personal Watercraft, Motorcycle, RV)
Provides for your passenger and your medical expenses that are the result of an accident.

Liability & Personal Liability Coverage
For homeowners, this coverage applies if someone is injured or property is damaged and you are to blame. The coverage applies anywhere in the world. When choosing liability coverage for your home, auto, boat, personal watercraft, or RV, consider things like how much money you make and what you own. Your liability coverage should be high enough to protect your belongings if you are sued.

Personal Property Coverage
Your home is filled with furniture, clothes, sports equipment, and other items that mean a lot to you. This coverage helps repair or replace these items if they are lost, stolen or destroyed as a result of an insured event.

Personal Watercraft (PWC)
A personal watercraft (PWC) is a recreational watercraft that the rider sits or stands on, rather than inside of, as in a boat. Models have an inboard engine driving a pump jet that has a screw-shaped impeller to create thrust for propulsion and steering.

Physical Damage Coverage for Watercraft
Pays to repair the damage done to your watercraft due to an accident. It also generally pays to repair or replace your watercraft for insured situations such as theft, fire, vandalism or other non-collision damages that occur in or out of the water

Premium
Simply put, a premium is the payment you make in exchange for one term of policy coverage.

Property or Dwelling Coverage
Typically pays to repair or rebuild your home if it’s damaged or destroyed by an insured event.

Scheduled Personal Property Coverage
If you have special possessions such as jewelry, art, antiques or collectibles, you may want to talk to your agent about this additional coverage.

Umbrella Insurance
Umbrella insurance is the coverage that may kick in when your losses under other insurance policies, such as homeowner’s and auto coverage, have exceeded policy limits.

Underwriter/underwriting
Underwriting is the process of assessing risks when deciding whether to issue a policy of insurance.

Uninsured/Underinsured Motorist Coverage
Pays for damages associated with bodily injury or death from an accident caused by an uninsured, underinsured or hit-and-run driver, as defined by the law in the jurisdiction where the accident occurred, who is at fault. It also covers you if you are hit as a pedestrian.

Unattached Equipment Coverage
Pays to repair or replace equipment that isn’t permanently attached to your boat or personal watercraft. This includes items like life jackets and water-skis.

You care about protecting animals.
We care about protecting your business.

Reviews

  • "We have worked with Bill Butler as our hospital and work comp insurance broker for the last few years, and we could not be more pleased with his service. He gives his honest opinion based on experience about where our dollars will be best spent and about the types of coverage we need, and when there have been disputes with our insurance company he has gone to bat on our behalf.  For these reasons he has earned our loyalty and I don't foresee that changing, and I predict that other veterinary hospitals will have a similar experience if they do decide to work with him"-Kelby Howell Practice Manager Blue Cross Animal Hospital. Client Since 2015
  • "Hi Bill, I just wanted to say thank you for coming out and giving me a quote for insurance.  I really appreciate the time that you took to gather information and communicate with the underwriters about our coverage.  You really took the time to educate me on our coverage and give me recommendations for the future.  Even though I can’t make a change this year because we ran out of time, I will definitely have you come back next year.  We will allow extra time next year.  Thank you again for providing great customer service!"-Sherry Foster Practice Manager / Owner Southview Animal Hospital
  • "I was interested in finding a new insurance agency to meet the needs of our business. I had been listening to the radio and heard of another company. I called them and they stated they did not work with the type of business that I have, and they recommended Butler Insurance. Oddly enough Bill had stopped by our business and dropped off some information the week before. I contacted Bill and after our first meeting, I knew I would be changing our insurance needs over to Butler Insurance. My goal was to find an excellent insurance agency, to find someone who would listen to my needs, and to educate me on what I needed, to keep my business and staff protected. Bill met all of this and has exceeded my expectations. I look forward to a long healthy business relationship! "-Dan Cederstom DVM Park Grove Pet Hospital Client Since 2018
  • "I have been impressed with Bill’s honest communication style; he’s a good guy who doesn’t pull any punches. He strikes me as very knowledgeable and hard-working, and I have no doubt that he does his absolute best for his clients."-Heidi Brenegan Chief Marketing Office Animal Emergency & Referral Center Of Minnesota
  • "I needed help with my insurance and Bill exceeded my expectations. His knowledge of my business (Veterinarian) needs helped me save a ton over last year. Thanks Bill!"-Sven Kohlmyer DVM/Owner Wayzata Pet Hospital Client Since 2018
  • "My wife and I have owned our veterinary clinic since the late 90's and have been in the business for over 40 years. Bill is the knowledgeable insurance agent I have ever know. When I met Bill, if I had not know he was an insurance professional, I could have easily been convinced that he owned a veterinary practice - he was that informed about our profession. Bill is hard working and thorough as well as ethical. I would highly recommend him for your insurance needs."-David Hermann DVM/ Owner Cleary Lake Animal Hospital Client Since 2019
  • "We are so happy to have found Bill Butler to help us with our business insurance needs. He is knowledgeable and helpful at explaining products which may apply to our veterinary practice. I am glad to be working with someone who is part of my community.  I feel confident that Bill will be there for us if we ever need him and that he is the right fit for our established St. Paul small business. Of course my favorite thing about Bill is how much he loves our clinic cat, Chou Chou!"-Anne Brownlee DVM/Owner Grand Avenue Veterinary Center Client Since 2018
  • "Bill recently took over our business insurance needs. Insurance is confusing and Bill explained things in a manner that made sense. I'm so happy we made the transition and highly recommend Bill and Associates! "-Amanda Foss – Practice Manager Grand Avenue Veterinary Center – Client Since 2018
  • "I had the pleasure of meeting Bill at the October VHA expo and was so happy that he followed up with us after our initial meeting. After meeting with Bill, we realized he is one who knows the veterinary insurance industry inside and out! He is an individual who is very thorough, provides easy to understand advice, and follows through with what he says! We switched our business and workman's comp insurance to the Butler agency due to the excellent service Bill provided in just the short time we have known him. Highly recommend Bill and the Butler Agency!"-Dr. Julie Berndt DVM Minnesota Valley Pet Hospital Client Since 2019
  • "Excellent communication, service, products and pricing. I highly recommend!!"-Dr Dan Soderberg Blaine Central Veterinary Clinic Client Since 2019

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