Jargon Buster

Something you're not sure about? All the insurance lingo here...

Our Reviews

4.9 / 5 Based on 1182 Reviews
Read all reviews »

Salon Gold Insurance Jargon Buster

 

A – E

Additional Premium

The extra charge for cover you can add to your existing policy

Aggregate Limit of Indemnity

The maximum payout amount an insurer will pay in the policy period to settle your claims

Amendment

A change you make to your policy, e.g. change of address

Cancellation

Ending a policy before it is due to finish

Claim

A request to an insurance company to make a payment for a loss that is covered under an insurance policy

Consequential Loss

The amount of loss that arises from being unable to use business property or equipment. For example loss of earnings or loss of rent caused by a property fire

Cover Note

A document issued which confirms the details of your insurance cover until a final insurance policy is issued

Employers Liability (EL)

This insurance is required by law if you have employees. It offers protection if a member of staff holds you responsible for an injury or illness at work

Employers Reference Number (ERN)

Also known as your PAYE reference number. All insurers that provide employers liability insurance need to submit the number to the Employers Liability Trading Office (ELTO) so the insurers can be traced if a claim is made

Endorsement

An amendment or addition to an existing insurance policy which changes the terms or scope of cover of the policy

Excess

The amount payable by you if you were to make a claim

Exclusion

Situations or circumstances for which the insurance company does not provide cover

 

F – L

Goods in Transit

Cover for the commercial transportation of goods. It protects against loss or damage while the goods are in transit from one place to another or being stored during a journey

Inception Date

The date on which the insurance policy begins

Indemnity Period

The length of time for which benefits are payable under an insurance policy

Insurance Premium Tax (IPT)

A tax payable on general insurance premiums. It was introduced under the Finance Act 1994

Insurable Value

The value of property stated in an insurance contract. It is the amount which the insured can claim for the replacement of the property

Insurance Broker

An independent person or company that advises clients and arranges their insurance cover with an insurer

Lapse

If a policy is not renewed, it will lapse

Legal Expenses (LEI)

A type of insurance which covers the policyholder against the costs of legal action brought against the policyholder, or legal action taken by the policyholder

Limited Company

A limited company has its own legal identity. The ownership of a limited company is divided up into shares. These are owned by shareholders who have limited liability and are not personally responsible for the company’s debts

 

M – P

Malpractice Cover

This is a combination of public liability and professional indemnity insurance. It covers you for claims made for bodily injury, mental and psychological damage from both physical procedures and from advice. It is usually purchased by health care professionals

Main Trade

Your principal trade which generates the majority of your turnover

Money and Assault Cover

Compensation in the event of bodily injury caused by robbery, theft or attempted theft

Material Fact

A fact that would influence the decision of an insurer to accept or decline a risk, quote a premium or decide the terms and conditions of a policy. If this information is misrepresented or not disclosed to the insurer, it may result in the policy being voided (treated as if the policy never existed)

Non-Disclosure

Failure to disclose a circumstance to the insurer

Partnership

An arrangement in which two or more individuals share the profit, loss and liabilities of a business venture according to the terms of the partnership agreement

Personal Accident (PA)

Insurance which will provide you with protection following an accident which prevents you from working. It pays a weekly benefit or a lump sum

Personal Accident for Hands

This would pay you compensation in the event of loss of a hand or fingers, or loss of use caused by an accident that occurs in connection with your business

Policy Period

The period of time within which the policy gives you protection

Public Liability (PL)

Covers accidental bodily injury caused by you or your business. It covers third party property damage, any damage to possessions belonging to a client or a member of the public while you are working

Products Liability

If you supply a faulty product to a customer that causes an injury or damages their property, they may try to sue you. Even if you have taken all necessary precautions, you may still be held liable for the injury or damages suffered as a result of the product supplied by you

Professional Indemnity (also referred to as professional liability insurance or PI insurance)

This is important to have if your business gives advice or provides a professional service. If you are accused of making a mistake or giving an inadequate service which costs your client money, it can pay for compensation claims and legal fees that may arise

Policy

This is the insurance contract stating details of the terms and conditions that apply to your cover

Premium

The total amount to be paid for the policy

Professional Treatment Risk

Cover for any injury to third parties or damage to their property arising from any treatments you do

Proposal Form

A form sent by the insurer to the customer to decide whether to accept a risk or not and to decide what conditions apply if accepted

 

Q – U

Quote

The amount of money that an insurance company estimates as the cost of providing insurance for the cover you selected based on the information you provided

Reinstatement

If a policy is terminated because a payment was not made to renew it, the cover may be able to be put back in place. This is reinstatement.

Risk Management

The process of identifying potential risks which threaten assets and earnings of a business, analysing them and taking precautionary measures to reduce them.

Salvage

Part or full recovery by an insurer of the value of something insured to reduce its loss after paying out a claim

Schedule

The outline or summary and details of the cover provided under a policy

Sole Trader

A person who is the only owner of a business, entitled all the profits (after tax has been paid) and liable for all losses

Statement of Fact

An alternative to a completed proposal form. It is provided by the insurer and sets out the basis on which insurance is accepted and the terms and conditions

Third Party

A person who makes a claim against an insured.  (The first party is the insurer and the second party is the insured)

Treatment Risk

Protection against claims for injury or damage caused by the treatments you carry out

Underwriter

A person who accepts a policy on behalf of an insurer

 

 

 
Other Articles:

Our Reviews

4.9 / 5 Based on 1182 Reviews
Read all reviews »

very easy to use and brilliant cover even for more non standard treatments

30 minutes ago

quick and easy quote, very easy to understand.

16 hours ago

Takes minutes! Anything that sounds complicated they write in a more simple way! Brilliant!

on Sep 22nd
© Copyright 2018 Salon Gold | Salon Gold, Holistic Gold, Counselling Gold and Fitness Gold are products of Henry Seymour & Co (Barkdene Ltd) which is authorised and regulated by the Financial Conduct Authority.Registered in England No 1842617 Insurance Brokers. All rights reserved.