| All Risks |
Special cover against all eventualities for high value items that need cover anywhere in the country or world. These are usually specifically listed in the policy. |
| Additional Expenditure |
Also known as 'increased cost of working'. This cover helps organisation’s to recover as quickly as possible following an insured loss. Cover includes additional costs incurred by your organisation whilst continuing to provide the normal services. |
| Average Earnings Index (AEI) |
An inflationary increase set by the government. We use this to calculate increases to our motor and engineering rates at each renewal. |
| Annual Aggregate Limit |
A financial cap on the cost born by you for amounts under an excess in the policy year. |
| All Duty |
A type of personal accident insurance, covering employees for accidents and assaults whilst working. |
| Annual Adjustments |
A number of policies are adjusted annually based on factors, such as sums insured and wage-roll, for the previous period of insurance. A form is issued to capture this data. |
| Aggregate Deductible or Excess |
This is a threshold below which you meet the cost of claims. Once the threshold is reached in the year, we pay the claims. |
| Bordereau (Claims) |
This method lets you submit a number of claims provided they are each less than £2,000 on one claim form, usually monthly or quarterly depending on the volume of claims. |
| Business Interruption |
Cover for loss of earnings and additional expenses incurred if your organisation couldn't operate fully due to a fire or other insured loss/damage. |
| Business Travel |
Usually travel undertaken by employees, directors or board members while on your organisation's business. |
| Capital Additions Clause |
Allows you to acquire new property to the value of £2,500,000 any one situation, without telling us. You should declare the cumulative additions on your Annual Adjustments form. |
| Certificate Of Insurance |
The legal document we send to you as evidence of your insurance. These are only issued for Motor and Employers Liability insurance. |
| Charity and Voluntary Sector |
Any UK based independent organisation created for the sole purpose of benefiting the(ir) community and where profit, revenue or funds are wholly invested back into the organisation. There must be a defined altruistic objective. |
| Claim |
When a policyholder or beneficiary seeks payment or settlement under the terms of a policy. |
| Claimant |
The person claiming. |
| Claims Experience |
Details of the cost and number of previous claims incurred. This would be required if looking for an insurance quotation. |
| Claims Handler |
The person administering your claim. |
| Claims Inspector |
A member of our staff who will mainly, but not exclusively, investigate Employers Liability, Public Liability and Motor claims. |
| Compensation |
The amount paid following loss or injury. |
| Compensation Recovery Unit (CRU) |
The government body responsible for recovering social security benefits payable resulting from accident, injury or disease. |
| Continuing Hire Charges |
Cover for continuing hire charges is an optional motor cover. You can add this to your policy for an additional premium. For example, if you damage a hired vehicle the hiring company may hold you responsible for ‘continuing hire charges’. This is usually a daily amount, payable until you've repaired the vehicle and returned it to them. |
| Cover Note |
A legal document giving you temporary evidence of cover. |
| Crimson |
Our online system that allows you to access your risk reports for plant and equipment that we inspect. |
| Claims Relationship Consultant (CRC) |
A claims specialist available to help the customer with complex claims issues, and assisting the Sales Consultants with new business tenders, representing the claims proposition. |
| DAS Legal Expenses Co |
Our claims handling agent for legal expenses cover. |
| Declaration Form |
A form we require for Fidelity Guarantee, Professional Negligence, Directors and Officers, and Trustees Indemnity covers. We need this before each renewal, as it reveals any changes in risk since you completed the proposal form. |
| Deductible |
The first amount of a claim that you pay. This is usually voluntary, while an excess is often compulsory. |
| Defamation |
This general definition describes libel or slander. By law, a defamatory statement subjects someone to hatred, ridicule and contempt. |
| Delegated Authority |
Property claims above a certain value are handled on our behalf by a loss adjuster. We authorise them to handle and settle your claim on our behalf. |
| EMPLOYEE |
Any person who is:
(a) under a contract of service or apprenticeship with your organisation
(b) suplied to or hired or borrowed by your organisation under the terms of a written agreement
(c) enganged under any work experience or similar scheme |
| Employers Liability (EL) |
If your organisation is found negligent and required to pay compensation to employees, this cover indemnifies you. |
| Endorsement |
A change to the policy wording of your insurance. |
| Excess |
An amount of money you must pay towards the cost of a claim, for example, the first £100. |
| Exclusion |
A property, person or event that your policy doesn't cover. |
| FE/HE (Further and Higher Education) |
All further and higher education institutions in the UK. |
| Fidelity Guarantee |
Protection for your organisation against losses from fraud or dishonesty by employees. |
| Financial Services Authority (FSA) |
A regulatory body for the financial services industry including the insurance sector. |
| Gross Revenue |
Money paid to your organisation for goods sold or services rendered, excluding rent for housing premises. |
| Hazardous Activities |
High Risk activities such as absailing, boxing, canoeing, skiing, hang-gliding, rock climbing, martial arts, quad-biking etc. |
| Health And Safety Executive (HSE) |
The government body responsible for regulating almost all work-related risks in Britain. |
| Housing |
A housing association is all social housing landlords including, housing associations, Arms Length Management Organisations and Registered Social Landlords. |
| Indemnify |
Security against loss or legal responsibility. |
| Indemnity |
A method of claims settlement, where we put your organisation in the same financial position after a loss as it was immediately before it. |
| Indemnity Period |
The period of time your organisation could be affected following an insured loss. |
| Insurable Interest |
The legal right to insure arising out of a financial relationship recognised at law, between the insured and the subject matter of insurance. |
| Insured |
As specified in the Policy Schedule. |
| Insured Perils |
A 'peril' is an event that causes a loss, such as a fire or a flood. The insured perils are those you're covered for under your policy. |
| Insurer |
Zurich Municipal. |
| Interest Forms |
Forms lenders or their solicitors send out, requesting details of the policy and asking us to confirm their legal interest in it. |
| Invoice |
Written demand for payment of premium or fees etc. |
| Insurance Premium Tax (IPT) |
Government tax, currently set at 5% added to all insurance premiums. This will be shown as a separate amount on the invoice. |
| Uninsured Loss Recovery (ULR) |
Attempting recovery of any losses, which were uninsured. |
| Legal Liability |
A legal responsibility for injuring someone, damaging their property or causing them financial loss. |
| Liability Claims |
Losses arising from covers such as public liability, employers' liability, libel and slander and professional negligence. The word 'casualty' is sometimes used in place of 'liability', e.g. liability claim or casualty claim. |
| Libel |
Defamation in a more permanent form, such as newspapers, reports, radio, television and pictures. |
| Limit Of Indemnity |
This is a limit in respect of any one claim or series of claims arising from one incident. |
| Loss |
Loss or damage occurring to an insured property. |
| Loss Adjuster |
An independent company that we instruct to handle property claims above a certain value. |
| Loss Control Action Points (LCAPs) |
From time to time we may require a risk survey on higher value properties. As a result we may specify improvements in the form of either requirements or recommendations with which you must comply. |
| Loss Control Surveyor |
Our specialists that undertake risk surveys and other risk management services. Loss Control Surveyors can also advise you on risk management issues. |
| Long Term Agreement (LTA) |
In return for a discount, the policyholder agrees to place their business with the insurer for a period of time, usually 3 or 5 years. |
| Material Damage |
Covers you for loss or damage by any insured perils to buildings and their contents. |
| Maximum Indemnity Period |
A period when business interruption insurance covers loss of revenue and/or additional expenses incurred while your organisation is unable to operate fully. The period usually lasts for 12, 18, 24 or 36 months. |
| Motor Insurers Database (MID) |
Insurers are required to record the details of all vehicles they insure in a central database in compliance with EU Directives. This helps the police identify uninsured vehicles quickly |
| Milestone Management |
A Zurich Municipal claims management system that allows you to track your claims online. |
| No Claim Discount (NCD) |
A reduced motor insurance premium that rewards you for not claiming. |
| Non-Ranking Excess |
An excess that will not count towards any aggregate. |
| Notification Limit |
If a building contract is above a certain value we require details in advance to provide Works in Progress insurance. The limit will be shown in the insurance Schedule. |
| Noting Of Interest |
Acknowledging a third party’s financial interest in an insured property. |
| Per Property Deductible/Excess |
This applies per property per loss. As an example, if a storm damages 5 properties, the excess/deductible will apply to each property and not to the claim overall. |
| Personal Accident |
Assault or accident cover, usually for employees and board members while performing their usual duties on your behalf. Compensation is paid as a result of injury with the amount set in advance through a table of benefits. |
| Policy |
Written evidence of the contract between your organisation and us. |
| Select Policy Wording |
Our policy wording. |
| Policyholder |
The person or organisation we insure and to whom benefits are payable. |
| Plaintiff |
A person or organisation bringing a case into court of law. |
| Premium |
The amount you pay for your insurance. |
| Professional Negligence |
Insurance against the legal liability to pay damages to third parties if you've breached your professional duty. Sometimes known as professional indemnity. |
| Property Owners Liability (POL) |
Sums you may be legally liable to pay if the buildings you own are damaged. |
| Proposal Form |
An application for insurance cover. Required for particular covers such as professional negligence, and not for large blanket cover or fleet risks. |
| Public Liability (PL) |
Covers legal liability for injury or damage you cause to others through negligence. Reinstatement More commonly known as ‘new for old’ cover. If a policy is on a reinstatement basis, it means we'll settle by paying you the cost of replacing losses. |
| Reinsurance |
When an insurer transfers part of the risk to other insurers. |
| Renewal Declaration |
The form on which the insured provides information (such as the wage roll estimate) the insurer needs in order to prepare renewal terms. |
| Rent Roll |
All collected rent monies in any one period of insurance. |
| Repair Limit |
The maximum amount you're allowed to pay for your own repairs. |
| Retained Authority |
When a Loss Adjuster stays in close contact with the claims department, supplying reports and asking for the department’s input and agreement where necessary. |
| Retroactive Date |
With certain types of cover, such as professional negligence, it may take years to settle a claim. In such situations, a retroactive date on your Policy Schedule covers claims for incidents going back to that time. However, in most cases, this is the same as the date the policy started. |
| Risk Assessment |
A procedure that identifies potential risks associated with a certain activity. |
| Risk Management |
Identifying, analysing and economically controlling risks that can threaten your organisation. |
| Safe Limit (Or Cash Rating) |
The maximum safe amount of cash to be kept in a particular safe at any time. |
| Sales Consultant |
Sales Consultants liase between our departments, acting as a focal point for any queries or concerns. They also present renewal terms or tender quotations to organisations. |
| Schedule |
The schedule is part of the policy and is specific to you. It shows the period of cover, which parts of the policy apply any special limits and any changes to the usual printed policy that are unique to you, usually in the form of endorsements. |
| Single Tier Authority (STA) |
Single tier authorities are made up of English, Scottish and Welsh Unitary authorities, Metropolitan Boroughs and London Boroughs. This also includes the Corporation of London. There are 169 in total. STA’s combine the responsibilities of Counties and Districts into a single authority or single layer. |
| Slander |
Statements of a transitory, rather than written nature, such as verbal words or gestures. |
| Subrogation |
The right to seek recovery from another party at fault. As an example, if a contractor damages your property, we are likely to pay your claim but then look to the contractor to reimburse us. |
| Summary Of Cover |
A document your Underwriter produces that briefly details the main points of your insurance cover. |
| Sum Insured |
The amount we insure a property for and the maximum amount we'll pay for a claim. |
| Tenants Improvements |
Any new features or alterations a tenant may make to their residence. |
| Territorial Limits |
Great Britain, Northern Ireland, the Isle of Man and the Channel Islands. |
| Third Party |
Someone other than you, the policyholder and us, the insurer. Usually used in a claims context to identify someone claiming against you. |
| To Whom It May Concern Letter |
A letter we will provide confirming that you are insured with us together with the relevant insurance details. These are often required in contract situations. |
| Underwriter |
The person who decides whether to accept a risk and calculates the premium charged. The Underwriter will also deal with policy cover queries. |
| Uninsured Loss |
A loss that your policy doesn't cover. |
| Works In Progress |
Cover for contracts involving work on buildings including new build and renovation/refurbishment. |
