Package Policy
This provides various covers automatically included as part of the ‘standard’ package under one single insurance contract (that were historically purchased separately) and may also offer optional covers
Peril
A specific risk, event or cause of loss that may be included or excluded from an insurance policy
Policy
A document detailing the terms and conditions applicable to every part of an insurance agreement. The Policy document/wording should be read in conjunction with the Insurance Schedule and any Statement of Fact issued
Premium
The monies to be paid by the insured in exchange for insurance coverage
Products Liability Insurance
Covers the insured’s legal liability for damage to property or injury to persons caused by defects in goods sold, supplied, erected, installed, repaired, treated tested and/or manufactured by the insured
Professional Indemnity Insurance
Covers the insured legal liability for their breach of professional duty (such as defective design, wrongful advice, error, omission or the failure of a system to perform it’s intended function) resulting in financial loss to their principal
Proposal Form
A form providing material facts and information from the proposer (who is to become the insured) in order to obtain insurance from an insurer. The proposal form is said to form the basis of the contract between the parties. It is the proposal form which is used by the insurer to decide whether or not to accept the risk and what conditions and warranties to apply if the risk is accepted
Proposer
The individual or company seeking cover (then becoming the Insured once cover is accepted)
Public Liability Insurance
Covers the insured’s legal liability for damage to property or injury to persons arising from business activities of the insured
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Reinstatement
Making Good on goods or property in lieu of a financial settlement of a policy
Retroactive Cover
Cover for past activities prior to inception of the current policy
Retroactive Date
The date from which retroactive cover applies
Return Premium
Monies due back to the Insured as a result of reduction of risk or cancellation of cover
Risk
The peril or exposure insured against
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SalvageThe recovery of all or part of an item on which a claim has been paid
Schedule
The details of the cover provided to the Insured which is specific to them and will list the covers and may include any specific endorsements, terms, conditions and warranties that the insurer has decided to apply
Statement of Fact
A document which sets out the material facts disclosed by the proposer or assumptions they have made about the proposer in offering terms (this typically is issued by the insurer to replace the need for a proposal form in an effort to reduce the burden of administration on smaller policies)
Statute Law
Law passed by Act of Parliament which may overrule, modify, bring together or create entirely new laws
Subject to Survey
Used by an insurer to signify provisional acceptance pending an investigation by a risk surveyor. The insurer may then reject the risk, accept the risk as it is or insist that any risk improvement requirements stipulated by the surveyor are complied with in full by an agreed deadline