Addendum
An addition to a document setting out agreed alterations to a contract
Additional Premium
Payable by the insured party as a result of a policy amendment, this may reflect changes to risk, the sum insured or a change in terms and conditions
Advance Profits Insurance
Business interruption insurance based on expected profits of a new venture or project usually before earnings have commenced
Aggregate Limit of Indemnity
The maximum amount that an insurer will pay out in claims to a client in a given period
All Risks
This is something of a misnomer but is effectively an inclusive term that ‘you are covered unless otherwise excluded’ and then the exclusions are listed. It is similar to, though not the same as, fire, full perils and accidental damage
Assurance
A term generally used in respect of life cover
Average
In the event of under-insurance, this clause entitles the insurer to pay any claim in direct proportion to the amount of under-insurance represents to the full value
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Business Insurance
Protection against losses due to unforeseen circumstances by transferring the risk to insurers in exchange for payment of premium
Business Interruption
Insurance cover for loss of turnover/revenue following an insured event that interrupts the normal operations of a business
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Cancellation
The early termination of a contract or policy. The specific terms in respect of cancellation of the policy should always be checked as insurers are not necessarily obliged to give pro-rata or even any return of premium and can depend on the cause of cancellation. There could also be a required notice periods and cancellation fees may be payable
Claim
A request for payment from and insurer due to an insured event occurring causing loss, damage, accident or illness etc
Claim Made Basis
This refers to a policy providing cover for claims made against an Insured during the Policy period and subject to notification during the period. If the claim relates to an occurrence or loss date prior to the current policy period, then the current policy must have ‘retroactive’ cover, in other words cover for past activities prior to inception of the current policy.
Commercial Combined Insurance
A Policy that combines a range of optional covers under one single insurance contract (that were historically purchased separately)
Common Law
Part of English law that evolved from custom and judgements handed out by judiciary, sometimes called judicial precedent (as distinct from statute and criminal law)
Concealment
Deliberate withholding of information relating to risk in an effort to mitigate effect on premiums, gain coverage when it might otherwise be withheld or profit from a claim that might otherwise be reduced or refused. Such an act would give insurers the right to void the
Consequential Loss
Indirect losses arising from an event of direct damage, can also be known as loss of income, loss of profits etc
Cover Note
A document issued by or on behalf of the insurer confirming details of the cover. Some circumstances such as motor insurance dictate a cover note as a legal requirement