Glossary
A
ABI: Association of British Insurers. An industry forum operating in the UK which represents the majority of the UKs insurance companies. The ABI has about 400 members and...
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The definition of accidental damage is pretty uniform across home insurance policies: damage that occurs suddenly as a result of an unexpected and non-deliberate action
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An insurance contract under which the insurer agrees to pay the insured a stated amount in the event of the total loss of the property insured without any adjustment for depreciation or appreciatio...
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A property insurance which covers any accidental loss or damage that is not specifically excluded under the policy.
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Any Driver: Any driver of a vehicle not necessarily the owner or the insured so long as the driver has permission to use the car.
Any driver insurance policies are not commonplace for general c...
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The principle of average applies when there is under insurance on an insured risk. It effectively means that any payment for a claim will be proportionally reduced, in line with the under insu...
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B
Bodily injury is where you cause someone physical harm, for example, you drop a heavy item on someone's foot and injure them
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There are two types of broker involved in arranging insurance and reinsurance at Lloyd’s: insurance brokers and reinsurance brokers. Some brokers act both as insurance brokers and reinsurance...
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The Home and its decorations,fixtures and fittings attached to the Home,permanently installed swimming pools (but not swimming pool covers), tennis courts,drives, patios and terraces, walls, gates ...
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Business Equipment Computers, keyboards, visual display units and printers, word-processing equipment,desktop publishing units, multi-user small business computers, facsimile machines,photocopiers,...
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Businesses of all types have varying insurance needs. If a business employs staff then it has a legal obligation to hold employers liability insurance. Public liability covers a busines...
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C
A clause in an insurance contract which permits an insurer and/or an insured to cancel the contract before it is due to expire. The clause may provide for a return of premium in respect of the unus...
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Generally most people know that a claim is made to an insurer or broker following a loss.
Once a claim has been started, a number of processes may occur. The insurer will evaluate the cla...
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This may refer to either of the following situations: (a) Where two or more insurers underwrite the same risk with several liability such that each insurer is not bound to follow the decisions of a...
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Insurance which is sold to firms. This term is used in contrast to personal lines.
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Contents Household goods and personal property, within the Home, which are Your property or which You are legally responsible for .
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Refers to the situation where the terms of an insurance or reinsurance contract are agreed before the inception date of the contract rather than being negotiated afterwards.
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Insurance or reinsurance as it applies to one or more specific risk exposures.
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A document issued by a broker pending the issue of a policy which confirms the arrangement of cover for the named insured/reassured. Motor insurance cover notes that are issued in the United Kingdo...
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D
The decrease in the value of an item due to age, use or wear and tear. Such devaluation is not covered under a contract of indemnity. However an insurer may agree to provide cover on “a new f...
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The duty of every person seeking insurance to inform the insurer of every material fact.
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E
If you employ anyone, or you are a limited company, it is a legal requirement to have employers' liability insurance to provide cover should an employee be injured or hurt in the course of carr...
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An endorsement is a written document attached to an insurance policy that modifies the policy by changing the coverage afforded under the policy. An endorsement can add coverage for acts or things ...
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An exclusion is an incident or event not covered by an insurance policy ,these will be stated on your Insurance documents.
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F
A type of insurance which is designed to protect a firm from losses caused by the dishonest acts of its employees.
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Flee - Fire, Lightening, Earthquake and Explosion
The term FLEE relates to basic peril insurance which will cover a property for fire, lightening, earthquake and explosion. This cover is ...
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Flood Plains are patches of land that are located next to water courses (streams and rivers) and are often submerged in water. Many flood plains have been developed in recent decades, leading...
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H
Something that causes an exposure to injury, loss or damage.
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I
When an insured person makes a claim, one of the founding principles of insurance is that they are returned to the monetary status they were in prior to the loss occuring. Of course, this pri...
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The term “insurable interest” refers to the benefit (or interest) a person has in an insured object or person. This benefit can refer to a financial benefit, among others. A person has ...
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An insurance broker is a company who represent their clients in arranging cover with insurers. A broker typically has access to many schemes and can therefore compare products for their clien...
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A harmful event which is covered under a contract of insurance.
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L
Liability in insurance means that it protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy
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An insurance which covers the insured against third party claims or, in the case of employer’s liability insurance, claims by employees, subject to specified terms and conditions.
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Another term for policy limit. It refers to the maximum amount payable under a policy of insurance or reinsurance, either overall or with reference to a particular section of a policy.
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A Listed Property in the United Kingdom is a building that has been placed on the Statutory List of Buildings of Special Architectural or Historic Interest. It is a widely used status, applied...
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The event which causes a loss, for example a fire or hurricane
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A person who is appointed to investigate the circumstances of a claim under an insurance policy and to advise on the amount that is payable to the policyholder in order to settle that claim. Loss a...
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M
Any piece of information which may influence the decision of an underwriter over the terms and cost of cover can be referred to as a material fact.
This is why they must be disclosed at t...
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Money ,current legal tender, cheques, postal and money orders postage stamps not forming part of a stamp collection savings stamps and savings certificates, travellers' cheques premium bonds, l...
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N
It means that the item referred to will be replaced for its current value without a deduction for wear, tear or betterment.
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For every year of claim free driving, each policyholder will earn a discount towards the cost of their renewal .
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P
This is the period of time on cover as shown in your policy shedule.
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Clothing, baggage, guns, sports equipment and other similar items normally worn, used or carried about the person and all of which belong to You
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The insurance contract between You and the insurance company which is based upon the proposal form and declaration which You agreed and whose terms are contained in the policy wording.
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The person who is insured under a contract of insurance.
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If, as part of your business, you supply and/or fit a part, you will need product liability cover should bodily injury or property damage occur as a result of the product being faulty. Even if you ...
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Property Owners' Liability insurance is similar to public liability insurance. It provides cover in the event of injury, death or damage to individuals or their property on or adjacen...
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A standard form which is prepared by an insurer and which contains a number of questions which a person seeking insurance is required to answer for the purpose of enabling the insurer to decide whe...
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Public liability insurance provides cover should you cause bodily injury to third parties or material damage to a third party's property. It does not normally cover defective workmanship (effic...
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R
Please use the following link to help with the rebuild costs: http://abi.bcis.co.uk/index.cfm†
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S
Washbasins, sinks, bidets, lavatory pans and cisterns, shower trays, shower screens, baths and bath panels.
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Built of brick, stone or concrete and roofed with slates, tiles, asphalt, metal or concrete.
Or if built during 1980 or after, timber-framed AND roofed with slates, tiles, metal,asbestos, aspha...
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This is cover against subsidence, heave and landslip. Subsidence is where the ground beneath a property gradually gives way or "subsides". Heave is the opposite of this and...
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The maximum amount that an insurer will pay under a contract of insurance.
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T
Someone other than the insured or his insurer who has suffered injury or loss
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Where the subject matter of an insurance is lost, destroyed or damaged beyond repair
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U
This means that the property does not contain enough furniture for normal living persons.
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The United Kingdom will include England,Wales, Scotland, Northern Ireland, the Isle ofMan and the Channel Islands and journeys between these countries
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V
Valuables such as jewellery, furs, gold, silver and gold and silver plated articles, pictures.
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