COMMON INSURANCE TERMS

Material Fact:

Any fact which would influence the insurer in accepting or declining a risk or in fixing the premium or terms and conditions of the contract is material and must be disclosed by a proposer, or by the insurer to the insured at inception of the policy, at renewal and during the period of the cover. Examples of a material fact could be previous claims, convictions, financial difficulties, i.e. CCJ’s, bankruptcies, liquidations, non-standard construction of premises, previous declinatures of cover or terms imposed

Maximum Indemnity Period:  

Under a Business Interruption insurance the period during which cover is provided for the disruption to the business following the occurrence of an insured peril. 


  Claims Notification: 
Different Insurers will have different conditions on claims reporting, failure to adhere to these could seriously affect your ability to claim. It is therefore essential that you comply with the notification conditions and, our advice is to notify us or your Insurers at the earliest possible opportunity.


Limit of Indemnity: 
The maximum amount payable. For Employers’ Liability and Public Liability policies, this is a limit for all claims arising out of a single cause, whereas this is normally stated as an aggregate amount payable in any one period of insurance in the case of Products Liability or Financial Loss insurances. In the case of Professional Indemnity insurances the Limit of Indemnity may be expressed as one or the other. 

 
Long Term Agreements or Undertakings:
 
Where a policy is subject to a Long Term Agreement (LTA) or Undertaking (LTU), for which a premium discount has been allowed as a specific amount or within the overall calculation of premium, you are bound to renew with the current insurer. If, however, the insurer seeks to amend the terms or conditions of the policy or the rates of premium charged (though this does not apply to changes in premium caused by amendments you request or changes in the rates of any applicable taxes) then you are no longer obliged to renew.