Act of God
A wonderful phrase! It refers to an event which is the result of natural forces which no human foresight could have predicted or provided against. It is becoming increasingly rarer to see this phrase in the claims culture in which we now exist.
Additional Premium
An extra premium charged by an insurance company either because of additional benefits being added or because the insurance is more hazardous
Aircraft (or aerial devices)
A specified peril covered under a material damage policy. It covers damage caused by aircraft or aerial devices or things dropped from them - but it excludes damage caused by sonic booms or acts of terrorism.
Assault Insurance
Nothing to do with assault courses! It is the term for insurance against persons being assaulted in the course of their duties. Usually covered in connection with money insurance.
Average
One of the most contentious phrases in insurance. Quite simply, if the amount that has been insured has been understated, then the value of any claim payment is reduced in proportion. For example; your house should have been insured for £100,000 but you only insure it for £60,000. In the event of a claim (e.g. your garage door gets damaged & will cost £2,000 to fix) you'll only get 60% of the amount you've claimed (i.e. £1,200). This is why it is really important to ensure that all of your sums insured are adequate.
Boiler Insurance
Insurance against damage caused by the explosion or collapse of a boiler & sudden and unforeseen acts such as overheating.
Bonus Protection
An option under a Commercial Motor policy whereby you effectively insure your No Claim Bonus.
Breakdown Insurance
Two separate definitions. 1) A form of Commercial Motor covering the expenses incidental to the breakdown of a car e.g. towage, hire, hotel expenses etc. 2) A form of engineering insurance which covers the costs resulting from the breakdown of electrical or mechanical plant and can also include frost damage.
Bumbershoot
A type of marine insurance providing liability cover in excess of normal limits.
Business Interruption Insurance
Also known as Loss of Profits and/or Consequential Loss insurance. See definition under Loss of Profits Insurance.
Chauffeurplan
A trademark & specialist insurance product underwritten by Longford Insurance Services providing insurance against loss of driving licence, car hire and/or incapacity to drive.
Claims Made Basis
A type of (usually liability) policy which restricts the insurers liability to claims made solely during the currency of the policy. Once the policy has expired or lapsed - no cover is in force.
Combined Liability
A term (usually) meaning one policy incorporating both employers & public liability insurance.
Commercial Combined
A term for a package insurance policy designed for SME businesses which can include many different types of insurance such as employers liability, public & products liability, property, money, loss of profits, inspection, personal accident, goods in transit & computers.
Comprehensive
Defined as covering a number of perils. In respect of Commercial Motor, comprehensive cover means the vehicle itself is insured against fire, theft, malicious & accidental damage - as well as providing third party insurance.
Compulsory Excess
An excess imposed by the insurer which is a condition of the policy & for which there is no premium refund.
Consequential Loss Insurance
Also known as Business Interruption and/or Loss of Profits insurance. See definition under Loss of Profits Insurance.
Contingency Insurance
Insurance against unusual and remote possibilities i.e. the re-appearance of a missing beneficiary or the discovery of unexpected archaeological remains.
Contract Works Insurance
See Contractors' All Risks insurance.
Contractors' All Risks Insurance
A type of insurance policy which is commonly effected by contractors & which can cover materials, equipment & liability on site.
