This Glossary of policies and terminology will be continually up-dated and so we recommend that regular visits to the site will be of benefit to you. The lists are not definitive, but we are sure you will find them useful and informative.

Glossary of Policies
and Terminology

Accident & Illness

Temporary payment for loss of income as a result of an accident or illness keeping you off work. Most policies exclude at least the first 4 weeks of disability and can be extended to include lump sum payments for death, total disablement or loss of eyes or limbs. Especially useful for the Self-employed.

Advance Profits

You are moving to new premises which are being built or perhaps refurbished for you. Disaster occurs and they are damaged which may effect your trading plans and ultimately your expected profits. This cover is available as a separate policy or an extension to your existing loss of profits cover.

Alarm Companies

Imagine the system you install doesn't work or the advice you have given proves to be flawed. Efficacy cover and wrongful advice are available as separate policies or as an extension to normal liability policies.

Antique Dealers' Combined

Package policy for Antique Dealers usually including cover for Buildings/stock/fixtures and fittings/public & employers' liability Glass, cash and loss of profits. Extensions for cover at markets or Fairs and for precious metals or works of art.

Bonds

Local Authority, Performance and Guarantee Bonds stipulated under contracts. Limited market through specialist firms.

Bookmakers Combined

All Embracing policy to cover buildings and contents, liabilities, cash, glass, loss of income etc. extensions include legal expenses.

Book Debts

Also known as "Accounts Receivable". Less common as an individual policy as usually either included in or as an extension to Loss of Profits cover. After you have invoiced your clients, but before payment is received you may "lose" your records as a result of an insured event such as fire or theft. You may have duplicate records, but if not, the insurance may compensate you for your losses up to the sum stated on the policy.

Care Homes

Package policies covering buildings/contents/residents' effects/ Liabilities/malpractice/loss of revenue/cash/glass and sanitary fixtures. Extensions available for Legal Expenses, personal accident, owner's or Manager's own contents, loss of registration, fidelity and engineering.

Caterer's Combined

Composite policy to include public/employers'/products liability, Including food poisoning risks. Can be extended to include cover for Stock on your own premises as well as on site, cash, goods in transit, and equipment such as tables and chairs as well as hired-in marquees.

Commercial Combined

General term for composite policy covering a selection of risks relevant to most forms of trade and industry. Select appropriate sections which include damage to buildings/stock/machinery, liabilities, loss of profits, cash, computers, goods in transit, legal expenses, glass, machinery Inspection and breakdown (see "Engineering").

Computer Systems

Loss, damage or breakdown of computers and some related equipment, Including wiring. Extensions include reinstatement of data, consulting Engineer's fees, increased cost of working, replacement of software and Increased rental charges.

Contractors' "All Risks"

Contractors' "All Risks" Insurance for materials and works in progress during construction, extension or renovation work. Should automatically include JCT21.2. Cover is available for the insurance of own plant and separate cover will be available for hired-in plant under CPA Model Conditions of Hire. Extensions available to cover temporary site buildings, your own tools and those of employees whilst on site.

Contractors' Plant

"All Risks" cover on plant and machinery anywhere in the UK, owned, Hired-in, or hired-out. All or individual items of plant can be selected and Engineering Inspection cover is available as an extension.

Credit

Cover can be arranged for all or selected customers and provides protection against the risk of non-payment for services and/or goods obtained under credit.

Critical Illness

A recent development in life assurance to recognise the affect a potentially life threatening illness can have on your future. The difference here is that the policy pays out the benefit BEFORE death, so that if your life is going to change, you have some cash to make it more comfortable.

Crops

Insurance against loss e.g. by hail, of growing crops.

Directors and Officers

Financial protection against allegations of executive mismanagement. Can include individual liabilities of Directors, Executive Directors and Officers of the Company, subject to a selected indemnity limit.

Employers' Liability

This is a statutory requirement and includes a wide selection of direct and indirect employees, whether paid or not. Providing an indemnity for legal liability in respect of bodily injury, death, disease, or illness sustained by your employees and arising out of their normal course of employment.

Engineering Combined

Commercial Combined policy with many optional sections to include cover for buildings/stock and work in progress/machinery, plant, fixtures and fittings/computers/glass/money/loss of profits/book debts/ goods in transit/public, products & employers' liability. Additional covers for stock at customers' premises/legal expenses/engineering inspection, breakdown and plant damage. BE CAREFUL OF MINIMUM PREMIUMS APPLYING TO EACH SECTION OF THE POLICY AND BE AWARE OF THE DISCOUNTS AVAILABLE DEPENDING ON HOW MANY SECTIONS YOU CHOOSE.

Engineering Breakdown

Specialist Insurers can provide cover for electrical or mechanical Breakdown of all or selected machinery. Extensions may include loss of income as a result of the breakdown.

Engineering Inspection

Amongst the many items of legislation about the work place are the "Provision and Use of Work Equipment Regulations 1998" and "The Lifting Operations and Lifting Equipment Regulations 1998" The considerable numbers of items encompassed by these regulations require inspection/examination by a "competent person" every 6 or 12 months, depending on the item. But legislative requirements are not exclusive to these two recent examples and specialist Insurance Companies are able to provide inspection and examination services.

Engineering Plant Damage

An extension of the basic covers under the standard insurance policy, This cover provides indemnity for sudden and unforeseen damage, including breakdown and collapse, as well as damage to surrounding property by insured pressure plant.

Factories

Commercial Combined policy with many optional sections to include cover for buildings/stock and work in progress/machinery, plant, fixtures and fittings/computers/glass/money/loss of profits/book debts/ goods in transit/public, products & employers' liability. Additional covers for stock at customers' premises/legal expenses/engineering inspection, breakdown and plant damage. BE CAREFUL OF MINIMUM PREMIUMS APPLYING TO EACH SECTION OF THE POLICY AND BE AWARE OF THE DISCOUNTS AVAILABLE DEPENDING ON HOW MANY SECTIONS YOU CHOOSE.

Farmers' Combined

All embracing policy to include Farmhouse/Contents, Farm Buildings, Holiday Cottages, B&B, Caravan Site, DeadStock, Livestock, Machinery, Vehicles, Crops, Liabilities, Loss of Revenue, Milk in Tanks, Transit, Personal Accident, Legal Expenses and ancillary farming risks

Farm Machinery

Breakdown cover for tractors, harvesters, etc following expiry of Manufacturers' warranties.

Farm Motor

Multi-vehicle policy to cover cars, tractors, combines, horseboxes, Trailers etc.

Fidelity Guarantee

Policies designed to indemnify you against loss of money, stock and other property as a result of fraud or dishonesty by an employee. You can name key employees on the policy or have all employees included.

Fire Alarms/Extinguishers

Imagine the system you install doesn't work or the advice you have given proves to be flawed. Efficacy cover and wrongful advice are available as separate policies or as an extension to normal liability policies.

Flats

Insurance for Blocks of Flats provides cover for the building, contents of communal parts, public and employers' liability and loss of revenue. Extensions are available for legal expenses and engineering insurance for lifts , boilers etc.

Goods In Transit

A variety of policies to cover your goods whilst being carried by contractors or in your own vehicles. Includes loading and unloading and should include cover for removal of debris following a claim. Should also include tools whilst being carried on the vehicle, but may need a separate extension and will carry restrictions in cover relating to theft. If you are using Hauliers, check their contract conditions especially the maximum value of goods in their possession.

Goods in Transit (Hauliers)

Policies to provide full or limited cover for loss or damage to customers' goods in transit or temporary storage. Cover may be limited To CMR or RHA only and extensions should include Removal of Debris, Cover for sheets, ropes and tarpaulins, and for driver's effects.

Hairdressers Combined

Package policy for Hairdressers and Beauty Salons. To include cover for buildings/fixtures and fittings/stock/glass/cash/loss of profits/ Liabilities including treatment risks. Extensions to include Legal Expenses and cover for self employed who "rent a chair".

Hotels & Guest Houses

Package policies covering buildings/hotel contents/freezer breakdown/ Wine, spirits and tobacco/guests effects/glass/money/loss of revenue/ Goods in transit and liabilities. Extensions can include Book Debts/ Loss of Licence/Computer Breakdown/Fidelity of employees/Legal Expenses/Engineering inspection for lifts, boilers etc.

Key Man

Your business may rely on the ability of a key employee whose death or serious illness could severely affect your profitability. Insurance, commensurate with their value to the business, can be arranged and is known as "Key Man".

Life Assurance

If you die what do you leave behind? A family, a mortgage, a bank loan, an inheritance tax problem - so many reasons to buy adequate life assurance.

Cut out all the jargon and you are left with three basic types:

1. Term Assurance: Basic death cover for the length of time you want it. If you die it pays out and if you don't there is nothing to come back. The cheapest form of cover and you get exactly what you pay for.

2. Whole Life: Cover until you die. Can grow in value with the addition of "profits" or if "unit linked".

3. Endowment: Like term assurance except that if you are still alive at the end of the chosen term there will be a cash or maturity value. With-profits or unit linked endowments are used in conjunction with mortgages or as a means of long-term savings.

Livestock

Loss of animals as a result of specified diseases or whilst in transit. Fertility guarantee and frozen semen, temporary cover for bulls on hire.

Legal Expenses

A VITAL part of any insurance portfolio in the current climate of red tape and litigation. Usually providing an indemnity of Ł50,000 for legal and other expenses incurred as a result of employment disputes, VAT disputes, Inland Revenue investigations, contract disputes, debt recovery, property protection and tenancy disputes. Also included is FREE 24-hour legal help line.

Lottery

To provide some financial support if a key employee or employees should resign after winning the National Lottery. The loss of a whole employee syndicate could have a devastating effect on your business.

Manufacturers Combined

Commercial Combined policy with many optional sections to include cover for buildings/stock and work in progress/machinery, plant, fixtures and fittings/computers/glass/money/loss of profits/book debts/ goods in transit/public, products & employers' liability. Additional covers for stock at customers' premises/legal expenses/engineering inspection, breakdown and plant damage. BE CAREFUL OF MINIMUM PREMIUMS APPLYING TO EACH SECTION OF THE POLICY AND BE AWARE OF THE DISCOUNTS AVAILABLE DEPENDING ON HOW MANY SECTIONS YOU CHOOSE.

Motor Trade or Garage Combined

Commercial combined policy with many optional sections to include cover for buildings/plant & machinery/ general stock/ customers' cars/ sales cars/fuel in tanks/ petrol pumps and forecourt fittings/ cash/glass/loss of profits/goods in transit/employers' liability/public liability including defective workmanship/engineering inspection for pressure vessels and lifting gear/legal expenses/road risks.

Motor Trade Liability

A single policy to cover employers', product and public liability risks as required. Suits small businesses such as vehicle collection & delivery services, valeters, mobile mechanics and car lots.

MOT Test Certificate Licence cover

Provides an insured amount to compensate for loss of profits resulting from the withdrawal or suspension of the MOT test licence. The financial consequences of such an action by The Vehicle Inspectorate could be enough to close dependent businesses down and will certainly leave a large hole in the profit and loss account. Not only would valuable testing income be lost but also the associated repair and servicing work. There is no substitute for vigilance in managing the licence, but this insurance can soften the financial blow if the licence is withdrawn.

Office Combined.

Package policies suitable for many occupations such as Accountants, Estate Agents, Solicitors, and SoftwareDevelopers etc… Covers buildings, contents, computers, book debts, cash, liabilities. Extensions can include personal accident, fidelity and Legal Expenses.

Pensions

Ignore the old maxim that "the state will provide" because we now know that it won't. You are on your own!

There are Personal Pensions, Employee Schemes and, soon to be introduced, Stakeholder pensions. It used to be said that buying a house would be the most expensive thing you would do in your life time, but if that is true, buying your pension comes a close second. Pensions schemes and plans can be so simple or complex that it should not be undertaken without serious and considered professional advice and whatever you do - don't delay because when it comes to pensions time really is money.

Permanent Health

Also known as Income Protection. This differs from basic accident & illness cover in that it is long term and the benefits are usually paid until you return to work or a chosen age, such as 60 or 65. Tends to carry longer deferment periods (time before they start paying you) of 13, 26 or even 52 weeks, tailored to your individual circumstances.

Personal Accident - Individual

Death/Bodily injury/loss of income etc. as a result of an accident. Weekly benefits usually payable for a maximum of 104 weeks and may exclude the first 2 or 4 weeks. Can be extended to include sports and some hazardous pursuits.

Personal Accident - Group.

Group schemes for employees. Frequently for weekly benefits following accidents at work and to top-up Statutory Sick Pay.

Personal Accident and Illness

As per the Personal Accident covers but extended to include absence through illness. This benefit is usually limited to 52 weeks only.

Private Medical

Regarded as cover for "jumping the NHS queue" but self employed or key employees may need to have as little time away from work as possible. Can be tailored made to suit individual circumstances, but costs vary considerably and your IFA will be able to obtain a number of alternatives for you to consider.

Product Guarantee

The cost of repairing or replacing products that fail to perform their intended function. Includes financial losses for which you are legally liable. Can be extended for product recalls caused by malicious or accidental contamination. Note this is a limited specialist market not available to all industries.

Professional Indemnity

Primarily for professional people and specialists who provide expert advice and service to their customers. Errors and Omissions do occur and in this litigious environment such a policy is considered to be of paramount importance.

Product Liability

Providing an indemnity for legal liability arising from products sold or supplied or services given or work undertaken in the course of your business. Frequently automatically included on small package policies for retailers, hoteliers, small builders and the like.

Property Owners Combined

Package policies for large or small concerns and providing cover for Tenanted buildings (see "Flats" for blocks of flats). In addition to cover for the buildings the standard policy may include loss of rental income and public liability and can be extended to include employers' liability, legal expenses and engineering insurance for lifts, boilers etc.

Public Houses

Package policies covering pub contents including general stock, wines, spirits, tobacco, frozen food/ money (including contained in gaming machines)/loss of profits/glass and sanitary fittings/goods in transit/ public and employers' liability/loss of liquor licence. Extensions can include buildings/Landlord's personal effects/fidelity of employees/ computer breakdown/legal expenses.

Public Liability

Providing an indemnity in respect of the legal liability arising in connection with your business to pay damages as a result of death disease or bodily injury or loss or damage to property of members of the Public (excluding employees).

Restaurants/Wine Bars

Package policies covering buildings/fixtures and fittings/stock including wines and spirits and frozen food/glass and sanitary fittings/cash/loss of profits/liabilities. Extensions can include Legal Expenses/Loss of Licence/Computer Breakdown and Fidelity of Employees.

Road Risks

Cover for own and customers' vehicle whilst being driven or kept at the place of business. Frequently excludes cover whilst at the private residence of the motor trader. A very limited form of cover which may be extended to include public liability and defective workmanship covers.

Shopkeepers Combined

Package policy for retailers including cover for buildings/stock/ fixtures & fittings/liabilities/glass/cash/loss of profits. Extensions for legal expenses/fidelity/goods in transit/computer breakdown.

Surgeries

Package policies typically for Doctors, Dentists, Alternative Medicines and Vets. Covering buildings/Contents/Computers/Drug Stocks/ Book Debts/Cash/Liabilities/Portable Equipment away from the surgery. Personal Accident, Fidelity and Legal Expenses available as extensions.

Travel

Business travel policies available for employees anywhere in the World on company business. Can also include personal holidays. Issued on an annual basis and usually requiring a declaration of the number of trips to calculate premiums.

Unoccupied Properties

Insurance Companies generally view these with trepidation although there are now some useful policies available. A few Companies offer a wide range of covers, subject to stringent security and underwriting regulations, but in the main the maximum that was available was cover for fire/lightning/explosion and public liability.

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Glossary of Policies and Terminology

Glossary of Policies
and Terminology