Partnership
A partnership is a type of business entity in which partners (owners) share with each other the profits or losses of the business.

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Peril
Types of exposures and risks covered or excluded on an insurance policy. Common examples might include fire, theft or collision. Each insurance policy will include detailed explanations of covered and excluded perils.

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Permanently Attached Equipment (PAE)
Equipment that is used in the course of doing business and is bolted or welded to an insured vehicle or trailer is permanently attached equipment. Examples of PAE include:

• Air compressors
• Auxiliary Power Units (APU's)
• Carpet cleaning equipment
• Computers
• Cranes
• Generators
• GPS units (mounted in vehicle)
• Ladder racks
• Lift gates
• Lift kits
• Logging equipment
• Pressure washers
• Shelving
• Snow plows
• Tool boxes

Equipment that is attached to the vehicle and makes the vehicle what it is, such as buckets, cement mixers, dump boxes, refrigerated boxes, etc., are not considered permanently attached equipment. Permanently attached equipment should be included when calculating the value of the vehicle for your stated amount.

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Personal Injury Protection (PIP) Coverage
Personal injury protection is the basic coverage implemented in no-fault automobile insurance states. PIP is a coverage in which the auto insurance company pays, within the specified limits, the medical, hospital and funeral expenses of the insured person, people in the insured vehicle and pedestrians struck by the insured vehicle. Depending on the state, PIP may also cover lost wages and additional expenses.

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Physical Damage Coverage
Physical damage coverage is designed to protect your vehicle. There are several forms of physical damage coverage, including collision coverage, comprehensive coverage and fire and theft with combined additional coverages.

Learn more about physical damage insurance.

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Placard
A placard is a metal plaque or other form of signage found on vehicles or trucks that displays a message to the public regarding the cargo being hauled, such as hazardous, flammable or explosive.

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Policy Expiration Date
Your current insurance policy ends on your policy expiration date, which is found on your current policy documents, declarations page (dec page), insurance identification card or recent cancellation notice. This date should not be confused with payment due dates.

It's also important to note that in many cases, the policy actually expires just after midnight at 12:01 a.m. on the policy expiration date. This means that as of 12:02 a.m., there is no coverage.

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Policy Term
The length of time your policy is active and coverage is in force.

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Premium
A premium is the amount of money paid to an insurance company in return for insurance protection.

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Primary Address
A primary address is the place where you would like all communications mailed. This is typically your business headquarters.

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Primary Auto Liability Insurance
Primary auto liability insurance has two components always included together: bodily injury liability insurance and property damage liability insurance.

Primary auto liability insurance is the basic insurance coverage that covers injuries or damage to other people or property if you're at fault for an accident.

Learn more about primary auto liability insurance.

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Primary Use
Primary use is how you mainly use your vehicle. Primary use options include:

• Business use only
• Personal use only
• Personal and business use
• Nonbusiness use
  

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Principal Driver
The person who drives the car most often is the principal driver.

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Private Carrier
A company that provides truck transportation of its own cargo, usually as a part of a business that produces, uses, sells and/or buys the cargo being hauled.

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Process Agent
A process agent is a representative upon whom court papers may be served in any proceeding brought against a motor carrier, broker, or freight forwarder. Every motor carrier (of property or passengers) shall designate a representative for each State in which it is authorized to operate and for each State traversed during such operations. Brokers are required to list process agents in each state in which they have an office and in which they write contracts. Federal Motor Carrier Safety Administration form BOC3 is used for this purpose.

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Property Broker Bond
See Surety Bond

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Property Damage Liability Coverage (PD)
Property damage liability is the second part of liability coverage. If an insured person is legally liable for an accident, property damage liability coverage pays for damage to others' property resulting from the accident. Property damage liability coverage also pays for legal defense costs if you are sued.

Learn more about property damage liability insurance.

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Property Protection Insurance (PPI)
Property protection insurance (PPI) provides protection if you cause damage to properly parked vehicles or fixed properties such as buildings, guardrails, lampposts, fences, etc. in the state of Michigan. Outside Michigan, your Property Damage Liability Insurance covers your legal liability for property damage.

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Public Liability
See Primary Auto Liability.

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Radius of Operation
The maximum distance traveled one way, as “the crow flies,” by an insured, from the point of origin to the point of destination, is the radius of operation.

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Reefer Breakdown
Refrigeration (reefer) breakdown is an optional coverage that can be added to a cargo policy to protect the policyholder from claims made due to a change in temperature, as a result of the mechanical breakdown of the refrigeration unit on the trailer being used to transport temperature sensitive freight.

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Rental Agreement
A rental agreement is a short term agreement, contract or arrangement in which the use of equipment, such as a vehicle, is granted for a specified time at a specified price.

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Repair Plates
Repair plates are license plates issued to businesses that repair, alter, recondition, equip or tow motor vehicles or trailers for the public. The plates are not assigned to a specific vehicle.

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Repossession
Repossession is reclaiming ownership of an item, such as a vehicle, because loan or lease payments have not been made.

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