Glossary of Insurance terms

Glossary of Insurance terms


You may cancel your cover at any time although you may incur a cancellation fee.


We will, on request, give you reasonable assistance and guidance in pursuing a claim under your policy. This will include processing claims fairly and promptly and keeping you informed of progress. Also, forwarding a settlement of a claim, without avoidable delay, once it has been agreed. We will inform you in writing, with an explanation, if your insurers are unable to deal with any part of a claim.

However, for your service most insurers now operate a dedicated Claim Line facility. Your policy will give you details of this. Consequently, there may be a delay in your Insurer updating us concerning any settled or ongoing claim.


Employers liability insurance covers your legal liability for bodily injury or illness to your employees arising out of the course of their employment.


Endorsements are exclusions to your policy. These may include exclusion of certain risks eg working over a certain height or with heat or machinery.


This is a minimum an amount you agree to pay in the event of any claim. For example if your policy excess is £100 and your claim amount is agreed at £300 you will receive £200 in settlement. Compulsory excesses help to minimise the number of small claims and keep your premiums down. You may have the option of reducing your premium further by opting for an additional Voluntary excess.


The date on a policy for which cover begins. Any claims made before this date will not be honoured.


This is a tax you pay on most general insurance policies taken out in the UK. The general rate is currently 6% but may be higher for some types of insurance eg travel insurance.


You may qualify for a discount on your premiums if you have been claim free for a number of years.


Monthly payment schemes are available if this is your preferred option of payment. Details regarding our monthly payment schemes can be provided to you upon request.


The amount you pay to receive cover under the terms of your policy.


Professional Indemnity Insurance will protect you against having to pay damages and legal costs should a claim be made against you.
Claims can occur where a client suffers a financial loss as a result of alleged mistakes or omissions on your part. This can cause serious damage to your business and great financial loss. Mistakes can be costly and your clients have recourse in law against you for financial loss.


Public Liability Insurance covers your legal liability to pay damages to members of the public (not your employees) in the event of accidental damage to property or death or injury to individuals arising through your business activities.


A policy is a legal contract to which you are the first party and the Insurer is the second party. Any other person with whom you have been involved in an accident is generally referred to as the Third Party.

Cover my Business is a trading name of F & R Associates, authorised and regulated by the Financial Conduct Authority. FCA no. 450712

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