{"id":1037,"date":"2021-01-05T12:31:34","date_gmt":"2021-01-05T12:31:34","guid":{"rendered":"http:\/\/theinsurancemanager-co-uk.stackstaging.com\/?page_id=1037"},"modified":"2022-10-26T11:56:23","modified_gmt":"2022-10-26T10:56:23","slug":"jargon-buster","status":"publish","type":"page","link":"https:\/\/theinsurancemanager.co.uk\/jargon-buster\/","title":{"rendered":"Jargon Buster"},"content":{"rendered":"
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Checking Your Insurance Policies?<\/h2>\n

Here Are Some Explanations That May Help<\/p>\n<\/div>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div>

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Accidental Damage<\/h2>\n<\/div>\n
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This covers damage caused by your own accidental self! Accidentally thrown coffee on the photocopier? That\u2019s accidental damage. Many policies are likely to provide it automatically without charge.<\/p>\n<\/div>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Administration Fees<\/h2>\n

Introduced by brokers dissatisfied with commission earnings. If we can avoid paying them, we do.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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All Risks<\/h2>\n

An alternative to a list of covered perils such as fire or storm. Its intention is to cover \u2018all risks\u2019 unless the policy specifically excludes them. However, the name is a little misleading as it can lead to confusion. Policyholders may believe all risks are covered, whilst insurers would assume industry standard exclusions are taken as read.<\/p>\n

It also leaves new perils in limbo \u2013 such as was seen with Covid 19. Better to consider it as the widest standard cover available, but have discussions about what it excludes.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Average<\/h2>\n

If the sum you insured for isn\u2019t high enough when you make your claim, your claim settlement will reduce proportionately in line with any shortfall. This shortfall is known as \u2018the average\u2019.<\/p>\n

For example your \u00a3100,000 insured building suffers \u00a380,000 damage. However the buildings rebuild value is in fact \u00a3200,000. So you were underinsured by 50%.\u00a0 So your claim payment will be reduced by 50%. This leaves you with \u00a340,000 to fix \u00a380,000 worth of damage.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Book Debts Insurance<\/h2>\n

Covers losses incurred when your account ledgers have been destroyed and you don\u2019t know who owes you money. If your accounts are electronic, make sure you\u2019re not paying for it.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Business Continuity<\/h2>\n

How your business will continue after suffering a serious loss. This involves considering various scenarios that would affect the business. It minimises the risk of occurrence and lays plans in case the worse happens.<\/p>\n

This insurance should not be looked at in isolation, but as part of your risk management and a tailored insurance portfolio.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Burglar Alarms<\/h2>\n

There are no premium discounts for commercial systems. But they will make you more attractive to insurers if they are fitted and maintained by recognised bodies and ring at a control centre where response is guaranteed. Always obtain underwriter\u2019s approval before<\/strong> committing to any system.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Business Interruption<\/h2>\n

A modern term for Consequential Loss<\/a><\/u>.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Claims<\/h2>\n

Not all policies are the same and this is where you find out the difference. The right policy for you should have all the small print checked. It should be tailored to fit your activities, suppliers, customers, contracts and needs.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Computer Insurance<\/h2>\n

Are you still on a policy requiring you to take manual backups daily and remove them from site overnight? Is it your data or your computers you are more worried about protecting? Should you be moving to the realms of cyber risks<\/a><\/u>\u00a0 instead?<\/p>\n

As we become increasingly computer dependent and use Cloud storage, these policies can be a little out of step with your business. On the other hand, a separate computer policy can be less expensive than covering your computers on the main business insurance.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Consequential Loss<\/h2>\n

What happens to your business after the fire, flood or other disaster? You will need to estimate gross profit or fees into next year for adequate cover. Be careful as the insurance definition of gross profit is unlikely to be the same as yours.<\/p>\n

You also need to consider damage further down your supply chain. Do you want to protect the ability to keep working even if uneconomic, to protect income or profit?\u00a0 It isn\u2019t one size fits all.<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Cyber Risks<\/h2>\n

Cyber insurance continually changes so wordings need re-evaluating every year.\u00a0 Generally, it falls into two categories:<\/p>\n