Common General Insurance
Core Terms
- Policy: A contract between the insurer and the insured outlining the terms and conditions of coverage.
- Premium: The amount paid by the insured to the insurer for coverage.
- Insured: The individual or entity protected by the insurance policy.
- Insurer: The company providing the insurance coverage.
- Claim: A formal request for compensation from the insurer due to a loss covered by the policy.
- Deductible: The amount the insured must pay before the insurer covers a loss.
- Excess: Similar to a deductible, but often used in liability insurance.
- Cover: The scope of protection provided by the insurance policy.
- Underwriter: The person who assesses risks and decides whether to insure a client.
- Reinsurance: Insurance purchased by an insurance company to protect itself from large losses.
Types of Insurance
- Motor insurance: Covers vehicles against accidents, theft, and other risks.
- Home insurance: Protects your home and its contents against fire, theft, and other perils.
- Travel insurance: Provides coverage for medical expenses, lost baggage, and trip cancellation.
- Public liability insurance: Protects businesses from claims for injuries or damage caused to third parties.
- Professional indemnity insurance: Protects professionals from claims arising from errors or omissions.
Other Common Terms
- Peril: A potential cause of loss, such as fire, theft, or accident.
- Hazard: A condition that increases the risk of loss, like smoking or poor building maintenance.
- Subrogation: The insurer’s right to recover losses from a third party responsible for the loss.
- Proximate cause: The direct cause of a loss.
- Insurable interest: A financial interest in the subject matter of an insurance policy.
Motor Insurance
Core Terms
- Comprehensive insurance: Covers damage to your own car, as well as damage or injury caused to others.
- Third-party fire and theft: Covers damage or injury caused to others, as well as fire or theft of your vehicle.
- Third-party only: The most basic level of cover, only covering damage or injury caused to others.
- No claims bonus (NCB): A discount on your premium for each year you don’t make a claim.
- Excess: The amount you pay towards a claim before the insurer pays.
- Add-ons: Optional extras that can be added to your policy, such as breakdown cover or legal protection.
Claims Process
- Accident damage: Physical damage to your car or another vehicle.
- Personal injury: Injuries sustained in a car accident.
- Third-party liability: Legal responsibility for damage or injury caused to others.
- Claim form: The document completed to notify your insurer of a claim.
- Loss adjuster: A professional who assesses the damage caused by a claim.
Other Terms
- Motorbike insurance: Insurance specifically for motorcycles.
- Caravan insurance: Insurance for caravans and motorhomes.
- Black box insurance: Insurance where your driving is monitored by a device in your car.
Professional Liability
Professional liability insurance, also known as professional indemnity or errors and omissions insurance, protects professionals from claims arising from their work. Here are some common terms:
Core Terms
- Claim: A formal request for compensation due to alleged professional negligence.
- Policyholder: The professional or business protected by the insurance policy.
- Insurer: The company providing the professional liability insurance.
- Premium: The cost of the insurance policy.
- Limit of indemnity: The maximum amount the insurer will pay for a single claim or in total for all claims within a policy period.
- Excess: The amount the policyholder must pay before the insurer covers a claim.
- Defence costs: The costs incurred by the insurer in defending a claim.
- Occurrence basis: Claims must arise from incidents that occur during the policy period.
- Claims made basis: Claims must be made to the insurer during the policy period, regardless of when the incident occurred.
Other Terms
- Negligence: Failure to exercise the care expected of a professional.
- Breach of duty: Failure to fulfil a professional obligation.
- Malpractice: Professional misconduct or negligence.
- Error and omission: Mistakes or oversights in professional work.
- Risk management: Steps taken to reduce the likelihood of claims.
- Underwriting: The process of assessing risk and determining insurance coverage.
Home Insurance
Home insurance covers your property and its contents against various risks. Here are some common terms:
Core Terms
- Buildings insurance: Covers the structure of your home and any permanent fixtures.
- Contents insurance: Covers your belongings within your home.
- Combined insurance: Covers both buildings and contents.
- Sum insured: The amount you insure your property for.
- Underinsurance: When the sum insured is lower than the actual value of your property.
- Accidental damage: Covers damage caused by accidental events.
- Escape of water: Covers damage caused by water leaks or burst pipes.
- Subsidence: The gradual sinking of the ground beneath your property.
Claims Process
- Loss adjuster: A professional who assesses the damage after a claim.
- Reinstatement value: The cost to rebuild or repair your property to its original condition.
- Depreciation: A reduction in the value of an item over time.
- Excess: The amount you pay towards a claim before the insurer pays.
Other Terms
- Home emergency cover: Covers the cost of repairs for issues like boiler breakdowns or blocked drains.
- Legal expenses cover: Provides legal support in case of a dispute related to your home.
- Inventory: A detailed list of your possessions with values.
Landlord Insurance
Home insurance covers your property and its contents against various risks. Here are some common terms:
Core Terms
- Landlord insurance: Comprehensive coverage for property owners renting out their property.
- Buildings insurance: Covers the structure of the property itself (walls, roof, etc.).
- Contents insurance: Covers the landlord’s belongings in the property (furniture, appliances, etc.).
- Rent guarantee: Protects against loss of rental income if tenants default on payments.
- Legal expenses: Covers legal costs if you face a dispute with tenants.
- Accidental damage: Covers damage caused accidentally by tenants.
- Malicious damage: Covers damage caused deliberately by tenants or others.
- Void property cover: Protects the property when it’s unoccupied between tenants.
Other Terms
- Excess: The amount you pay towards a claim before the insurer pays.
- Underinsurance: When the property is insured for less than its rebuild cost.
- Tenants’ liability: Covers claims made against you by your tenants.
- Public liability: Covers claims made against you by third parties for injury or damage.
- HMO insurance: Specific cover for properties housing multiple occupants.