Glossary

At Tompkins Insurance Agencies, we want to provide you with the resources you need to get the policies you deserve – and actually understand them.

We’ve provided this glossary of terms so you can use it as a tool when you’re looking for the right coverage for yourself or your business.

Business

Liability Insurance: Insurance designed to protect you.
Fleet: A group of five or more commercial vehicles.
Lost Wages: The income an employee would have earned had he or she not been injured or fallen ill on the job. Workers’ compensation can cover these wages.
LICA: Land Improvement Contractors of America.

Personal

Collision Coverage: Auto insurance that will cover the cost of repairing your vehicle after an accident.
Comprehensive Coverage: Auto insurance that will cover non-accident related costs like theft, vandalism or damage from a fallen tree limb.
Policy Limit: The amount up to which your policy will pay out. For example, your homeowners insurance likely has a policy limit of around $2,500 for your jewelry.
Umbrella Insurance: This coverage lays like an umbrella over your existing coverage (e.g. homeowners insurance, auto insurance) and protects your liability.

Employee Benefits

ERISA: The Employee Retirement Income Security Act of 1974. Your business needs to comply with ERISA’s minimum standards for health and pension plans.
HSA: Health savings accounts (HSAs) allow your employees to pay for high deductibles with dollars that are accrued before taxes.
FSA: Flexible spending accounts (FSAs) allow your employees to set aside pre-tax dollars for medical expenses, care for their dependents, and more.
Voluntary Benefits: Benefits your business offers for which your employees pay.

Financial Services

Home Equity Credit: You can leverage the equity you’ve built in your home as collateral for a new home equity line of credit.
FDIC: Federal Deposit Insurance Corporation