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Addendum

A document which spells out agreed alterations to an insurance contract.

Advance profits insurance

Also known as delayed completion cover or delay in start-up cover, advance profits insurance covers a business against any financial losses which might incur as a result of a delay or disaster.

Adjuster

Someone who investigates claims on behalf of the insurer.

Business contents and stock cover

Insurance coverage in the event of an insurable loss. Computer equipment is likely to make up the biggest cost in an office while manufacturers might prefer to insure their stock or production equipment. This can be coverage against burglary, fires or floods.

Business interruption insurance

Also known as business income insurance, business interruption insurance is a type of policy which covers loss of income which a business suffers after a disaster.

Business insurance

Insurance for firms, enterprises, governmental bodies and non-profit organisations to protect against financial losses. These policies protect against a whole range of unforeseen circumstances.

Employers liability

A business insurance policy which protects employers from injuries to employees which result from workplace conditions or processes. In the UK, most employers are required by law to insure against liability for injury or disease to their employees arising out of their employment.

Increased cost of working

A type of business interruption insurance which covers a business against any short term costs in the event of an insured event like a fire or flood. These added costs could be things like relocating to new offices or restocking a shop.

Indemnity period

The amount of time that you can claim for business interruption insurance. The minimum is usually 12 months but the standard for most policies is 24 months.

Insurance broker

An intermediary between insurance company and customer who provides advice and arranges policies. Brokers are industry experts with professional skills which help them act as effective agents and get the right rates for clients.

Non-disclosure

The failure by a business or their broker to disclose any pertinent facts or circumstances to the insurance company before they draw up a policy.

Negligence

The legal principle which gives rise to civil liability. It can be defined as a certain kind of professional failure, to do “something which a prudent and reasonable man would do”.

Public liability insurance

Essential cover for businesses which interact with members of the public in any capacity. Generally, it covers against injury or damage which might in some way be caused by your business activities. While it is not compulsory, it is extremely important, even for the smallest businesses.

Policy

The insurance document which details the terms and conditions of the agreed contract. The policy is normally issued by an insurer after negotiating with the customer or their broker.

Policy holder

The person named on the policy document.

Premium

The amount paid for insurance, usually annually.

Professional indemnity insurance

A type of policy which protects professionals against liability claims from customers and members of the public. These policies protect against injury and lost or damaged property arising from negligence on behalf of the professional or their employees.

Risk

The danger which an insurance policy protects against. The greater the danger, the greater the risk (and the premium).

Risk management

The process of identifying and measuring risks which threaten a business. This can be threats to both assets and earnings.

Sum insured

The absolute maximum amount payable in the event of an insurance claim.

Third party

While the insurer is the first party and the business owner is the second party, the third party is anyone making a claim. For business insurance this could be a customer, a member of the public or anyone else with a legal right to claim liability. Find out more about the insurance policies offered by Utility Helpline.