Shop Insurance
A term for a package insurance policy designed for retail businesses which can include many different types of insurance such as employers liability, public & products liability, property, money, loss of profits, personal accident, goods in transit & computers.
Sonic Booms
Pressure waves projected from aircraft travelling at supersonic speed. Excluded from all property insurance policies in the UK. Speak to your MP instead.
Spontaneous Combustion
Combustion which occurs without heat being applied externally. Usually sought by readers of Fortean Times and farmers. Or both.
Sprinkler Leakage
A specified peril which can covered under a material damage policy against the damage caused by sprinklers leaking or accidentally activating.
Storm
A specified peril covered under a material damage policy. Defined as a violent wind usually accompanied by rain, hail, sleet or snow and/or the riding out of the four horsemen of the apocalypse. Storm is not merely a gust or wind or heavy rain.
Sum Insured
The sum expressed in an insurance policy as the amount payable on the occurrence of the event insured against, or, what you'll get if the event of a total loss. Some policies pay on a 'new for old' basis and other only pay on an 'indemnity' basis; it is really important to understand the difference between these phrases so your sum insured is calculated accurately.
Terrorism Insurance
Insurance against damage caused by terrorist acts. Available as an optional insurance within the UK.
Third Party Fire and Theft
A cover provided under a Commercial Motor policy. The policyholders own vehicle is only insured against damage arising from fire or theft. The policy includes third party cover as required under the Road Traffic Act.
Uninsurable Risk
A risk which no insurer will accept. This may be because the risk is too high or because it is a business or trade risk which the business owner should be expected to bear himself.
Utmost Good Faith
Insurance contracts are based on the premise that both parties (the insurer & the insured) MUST disclose all material facts which would influence the decision as to whether to accept the insurance, and if so, subject to what terms.
Violent and Forcible
Theft insurance on business premises usually restricts cover to theft following forcible or violent means. (This has been defined as including using a device to slide back or 'pick' a lock - but the onus is on the policyholder to prove it.)
Voluntary Excess
An excess which the policyholder agrees to in return for a discounted premium.
War
'What is it good for' etc. Insurance against war risks is not available for land risks on property or liability as it is presumed the Government will make provision... It is available for transit, marine & aviation insurance.
Warranty
A condition within an insurance policy stating that the policyholder must, or must not, do a certain thing. For example a Minimum Security Warranty would mean that certain types of lock MUST be fitted. Breaching a warranty allows the insurance company deny liability - i.e. avoid paying the claim.
Water Damage Insurance
A generic term applying to damage caused by storm, flood, bursting or overflowing of water pipes/tanks/apparatus. Damage caused by sprinkler leakage can be covered separately.
Wear and Tear
A standard exclusion under a material damage insurance policy.
Weather Insurance
See Pluvius Insurance.
Without Prejudice
A term used in discussion & correspondence. A letter so marked cannot be admitted in evidence without the consent of both parties concerned.
Workmens' Clause
A clause in a fire/material damage policy allowing the presence of outside contractors on the insured premises.
Also known as Business Interruption and/or Consequential Loss insurance. Insurance of loss arising from interruption of the business by an unforeseen & insured event, or put another way, it pays the gross profits you would have continued to earn if the business hadn't suffered the disaster or catastrophe which stopped it trading. Most businesses without this cover never recover after a serious fire or flood.
The ship's bell of H.M.S. Lutine, wrecked in 1799 whilst carrying a cargo of gold valued at £1.4 Million. The bell hangs at Lloyds & is rung when important announcements are to be made.
