Insurance Jargon

Information relating to your insurance policy is provided in the "Policy Wording". This is a document which will be issued to you after your cover has been effected and you have paid the appropriate premium due. It often accompanies a policy Schedule and both should be read in conjunction with each other. In addition to the Schedule, You will sometimes receive various Certificates, e.g. an Employers Liability Certificate although this is usually sent to you at an earlier date as a copy needs to be displayed at your business premises.

Some of the common jargon used in Policy Wordings is as follows:

• Territorial Limits
  Cover is restricted to the countries stated in the Wording / Schedule
  
  
• Excess
  The amount of money deducted by your insurer if you make a claim under your Policy. This amount is usually specified in your Schedule and may change depending on the type of cover.
  
  
• Reasonable Precautions
  You must take all responsible precautions to prevent accidents, injuries or disease to your employees or anyone not employed by you. This includes the need for you to comply with all statutory obligations.
  
  
• Choice of Law
  You and the Insurer are usually free to choose the law applicable to the contract. In the absence of an agreement to the contrary the law of England and Wales will apply.
  
  
• Alteration of Risk
  You must notify your insurer if anything changes which may affect the risk insured, e.g. if your business premises are being renovated or undergoing major structural change.
  
  
• Limit of Indemnity
  The Schedule will specify a defined amount for which the insurer is liable (subject to the claim being agreed and accepted by the insurer).