Gross Premium
The premium including brokerage/commissions before the addition of Insurance Premium Tax
Gross Profit
Turnover less purchases (plus any change in stock) and any other savings that would be made were the business not operating. This is not the same as the accountants’ calculation of Gross Profit which usually deducts wages and other potentially unavoidable costs
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Inception Date
The date from which the Policy cover commences
Increased Cost of Working
In respect of an interruption to the business following an insured event this is the additional expenditure incurred by the insured for the purpose of reducing or avoiding a reduction in turnover/revenue. Additional Increased Cost of Working is paid in addition to loss of revenue to avoid the economic limit when it is essential for business to continue
Indemnity
The principle where the insurer seeks to place the insured in the same position occupied immediately before an event
Indemnity Period
The period of cover in respect of Business Interruption provided for disruption to the business as a result of an insured event which normally starts at the time of occurrence
Insurable Interest
For a contract of insurance to be valid the policy holder must have an interest in the insured item that is recognised by law
Insurable Value
The value to be paid out by the insurer in case of loss
Insurance Broker
An intermediary who advises clients and arranges insurance cover, Insurance Brokers must be regulated by the Financial Conduct Authority
Insurance Premium Tax
Introduced as part of the Finance Act of 1994 this tax is levied on most general insurance risks in the UK. This is not the same as VAT and is not recoverable
Insured
The person or company who is insured
Insurer
A company or individual who underwrites an insurance risk, undertaking to pay in the event of a claim covered under the Policy