Policy: A word which refers to the contract between you and your insurance company.

Carrier: Your insurance company (they don't actually "carry" anyone.)

Risk: That means YOU or your business

Limits: The amounts of insurance you are buying

Premium: The price of your policy

Exposure: The basis of your price for the policy (eg. sales, property values)

Rate: The cost per unit of insurance. Multiply the Rate by the Exposure to get your Premium. Isn't that simple?

Liability Coverage: Insurance which protects you should you get sued

Business Owners Policy: A contract of insurance which combines many of the insurances a business needs into a single package

Coinsurance: A requirement that you buy enough insurance to replace a fixed percentage (the "coinsurance" percentage) of the property you are insuring.  After a loss, not having enough insurance can result in a coinsurance penalty.   The penalty reduces the payment of the loss.

Loss: What the insurance company pays for when it fulfills its obligation under your contract

Legal Liability: It's not good enough that YOU feel guilty for something that happened —  a court of law must agree that you did something wrong before the insurance company pays on your behalf.

Indemnify: The insurance company's obligation to eitherpay on your behalf for a loss you were responsible for or repay you for a direct loss.