Breaking through the Jargon
Most insurance brokers will talk to you about your insurances using everyday language however sometimes there is just no getting away from insurance terminology.
Here is Businessinsure by Clark Thomson’s guide to insurance jargon
What is a peril?
A peril is an insurance term for a specific event, circumstance or incident that they will insure you for.
Standard perils would normally include: Fire, explosion, storm, earthquake, flood, burst or frozen pipes, escape of water, theft or attempted theft, malicious damage riot or civil commotion, impact and subsidence, heave and landslide.
Often the list is not exhaustive of all events and may vary however these will be supported by excluded perils or events.
What’s the difference in All Risk cover ?
All risk cover is a terminology used when cover is provided for all the standard insurance perils with the inclusion of accidental damage.
All risk policies will not provide cover for all eventualities and will still have excluded events.
It may also be used to discribe a section of a policy which provides cover for items out with the business premises but within a specified geographical duristitction ie in the UK.
What is an Exclusion?
An exclusion is an event, circumstances or incident that your insurers will not provide cover in respect of.
What is insurance premium Tax?
Insurance premium tax (IPT) is a tax that is applied to general insurance.
There are currently 2 types of insurance premium taxes a standard rate (currently 12%) which is applied to most insurance policies and a higher rate (currently 20%) which is applied to policies such as travel or mechanical inspections and certain motor insurances ie when sold with the vehicle.
What is a deductible or excess?
An excess or deductible is a specified amount that should be paid by the policyholder or deducted from the settlement in the event of a claim. I.e. If you have a policy excess of £250 and you submit a claim for £1,000 your claim would be settled at £750.
What is an Endorsement?
An endorsement is a document noting or evidencing a change to your policy and usually consists of an amended schedule and or certificates in the event of motor and employers liability.
What is an Inception date?
An inception date is the date on which cover has commenced from.
What is meant by insurable interest?
In order to maintain valid insurance the policyholder must have a legal interest in the item that they intend to insure.
For example if you own a car you would legally have an insurable interest in the event of an accident as the vehicle belongs to you and as such you will suffer the loss finically or physically.
However if you are a named driver on a friends car whilst legally you must be insured, in the event of an accident you would not financially suffer if the property was damaged and as such no insurable interest exists for you.
What is meant by wear and tear?
Wear and tear is a term referring to the amount deducted from claims or excluded from policies for any depreciation in the property which is expected through usage, age or condition.
What is a package policy?
A package policy is a name given to a group of policies which “package up” all the main covers required for the trade or sector with the benefit of having additional covers.
These policies often include cover for property, liability and covers to protect your income. Covers can be tailored to suit each clients personal requirements.
What is a fleet policy?
A fleet policy is a term used to describe a motor insurance policy which provides cover for multiple vehicles, this may be for as few as 2 vehicles.
How Can Businessinsure by Clark Thomson help?
As the largest independent insurance broker in Scotland Businessinsure at Clark Thomson are likely to have some of our dedicated staff nearby.
We pride ourselves on delivering an individual and personalised service so whatever your query or questions our staff are on hand to help.