• Administrative Work for Contractors

    By administrative work, we mean things like paperwork, clerical work and keeping the accounts up-to-date. This could include salespeople or designers such as measuring for kitchens and bathrooms. Please only include people who only do administrative work. If someone does both manual and clerical work they should be included in the manual workers.

  • Alarm Condition

    If you have told us you have an alarm at your business premises, this condition details the instructions you must follow for your intruder alarm system in order for us to consider paying a theft claim.

  • Alternative Accomodation

    A payment made to cover the costs for you to move to another premises in order to continue trading if your premises are unusable following damage covered by the policy.

  • APR

    An annual percentage rate (APR) is a way of measuring how much a financial product will cost you each year over the term of a contract. E.g. any interest charged on paying your insurance monthly.

  • Arbitration

    If the amount we're willing to pay out for a claim is less than what you think it's worth, you may want to dispute it. Arbitration is the process of using a third party to settle such issues.

  • B
  • Bodily Injury

    When someone is injured following an accident, this includes death, disease or illness.

  • Bona Fide Subcontractors

    Contractors, such as plumbers or electricians, hired for a specific specialist job as a part of a wider contract. They work independently and are responsible for their own health and safety, set their own hours, supply their own tools and materials and paid through invoices or fixed priced contracts. They should have their own liability insurance and are responsible for the work they have carried out

  • Book Debts

    This is an extension under the business interruption section that covers the cost of reproducing records and chasing any money owed following the destruction of accounting records following an insured event.

  • Buildings Insurance

    This would cover the cost of rebuilding or repairing buildings that have been damaged by an insured event e.g. a fire, flood.

  • Business Contents and Stock Insurance

    This would cover the cost of replacing or repairing items used by your business, such as your stock, shop shelving, office furniture or work computer that have been damaged by an insured event e.g. fire, flood or they have been stolen.

  • Business Interruption Insurance

    Business interruption covers loss of turnover, and the costs of a temporary relocation, if your business cannot trade due to damage to your equipment or premises.

  • C
  • Causes

    When your property has suffered damage or a loss as a result of something that is covered under your policy e.g. fire, flood or theft.

  • Choice of Law

    This sets out the legal system that applies to the policy is someone disputes it. We consider all of our policies to be under English Law.

  • Claims Made Basis

    This means you are covered when a claim is made against you, regardless of when the incident happened.

  • Collateral Warranties

    If someone is under contract to work for you, they may need a collateral warrant to hire someone to work on the same job. For instance, an architect working for a construction site. This warrant holds this third-party to account, making sure they carry out their work in a professional manner. It also entitles this third-party to claim for losses that they wouldn't otherwise be able to recover.

  • Conditions Precedent

    Conditions within the policy that you must comply with in order for us to pay a claim. For example, there might be a condition on your insurance policy that says before a ground excavation is undertaken, you must carry out a survey. If you do not carry out a survey, and the underground cable is damaged, you would not be able to make a claim.

  • Contingencies

    When your property has suffered damage or a loss as a result of something that is covered under your policy e.g. fire, flood or theft.

  • Contract Works

    This covers work that is in progress that is damaged by an insured event, such as a fire, flood, vandalism, or theft. We can cover the costs required to repair or redo the work.

    For example, if you're a builder working on a house and a fire destroys part of the house five months into a six-month contract, we can help you to complete the contract by:

    • covering the costs required to purchase the materials needed to finish the job
    • covering the costs required to rebuild the parts destroyed by fire
    • covering any labour costs to repair the damage

    Cover limits:

    Contract value (based on the maximum value for any one contract anywhere within the UK)

    • Up to 5 workers - £750,000
    • Up to 10 workers - £1,000,000
    • Up to 15 workers - £1,000,000

    Turnover limit - £1,500,000

    Excess per claim - £500

  • Cyber Insurance

    If you're a victim of cybercrime or your website is hacked, this policy covers the cost of recovery. This might include fixing computer system damage, financial loss and data breach expenses.

  • D
  • Data Protection Act

    This law controls how organisations can use personal information in the UK. This data must be kept safe, secure and up to date. Additional protections cover sensitive information, such as someone's ethnic background, political opinions or health.

  • Debris Removal

    This provides cover for the cost of removing debris at your premises or demolishing your property that is covered by the policy, when it has been damaged by an insured event.

  • Defective workmanship

    Where work has not been carried out correctly or to a good standard.

  • Denial of Access

    When there is damage to property within the vicinity of your business premises that prevents or hinders access or use of your premises.

  • E
  • Employer's Liability

    This insurance covers you if one of your employees makes a claim against you after being injured or becoming ill due to the work they do for you.

  • Events

    When your property has suffered damage or a loss as a result of something that is covered under your policy e.g. fire, flood or theft.

  • Excess

    This is what you'll pay towards an insurance claim. It's sometimes called a 'deductible.'

  • F
  • Fixed Woodworking Machinery

    Any fixed power-driven woodworking machinery, such as circular saws, vertical spindle moulders and surface planers which are used by any person working for you in connection with your business. This does not include hand held equipment such as drills and routers.

  • Fixtures and Fittings

    This is anything that you cannot reasonably remove from a property, such as skirting boards and plumbed-in items, like sinks and toilets.

  • G
  • Guest House Insurance

    This is for people who run a business offering accommodation to paying guests. It will cover your business if it is impacted by an insured event, such as a fire, flood or theft.

  • H
  • Heat Equipment

    This would be equipment that produces open flames or any other sources of heat or sparks that could ignite flammable or combustible materials. The equipment used could include angle grinders, blow lamps, blow torches, gas torches, welding equipment, hot air guns, flame cutting equipment and tar, bitumen or asphalt heaters. This does not include the use of a soldering iron.

  • Hired In Plant Cover

    This covers the cost of replacing damaged or stolen machinery that you've hired, under contract, on a short term basis. This could include cement mixers, diggers, generators or even temporary site huts and caravans.

  • Hold Harmless Agreements

    A contractual agreement where you take responsibility for any claims made, whether you are responsible or not.

  • I
  • Increased Cost of Working

    Any additional expenses reasonably incurred, but only to avoid or minimise any reduction in turnover during the indemnity period, resulting from damage.

  • Indemnify

    We will agree to pay/cover a claim made against you.

  • Indemnity

    Indemnity means that one party in the contract is responsible for compensating another for the loss, damage and/or injury that they have caused.

  • Indemnity Limit/Limit of Indemnity

    Covers the legal costs and compensation payments that your business would have to pay for if you or one of your employees accidentally damage someone else's property or accidentally injure a third party.

    The limit you select will be the maximum we will pay for each claim.

  • Indemnity to Principals

    This clause means that the principal (who is usually the end customer, your client or the main contractor) is included as an insured party under the policy so that they are covered if a claim is made against them as a result of another person's actions. So if there is a claim made against the principal by their client and you are determined to be responsible, the policy will cover the claim as if the claim was being made against the principal.

  • Index Linking

    If your policy is index-linked and there's a change in the costs involved to rebuild the property (e.g. if the price of bricks increases), at renewal, your sum insured will automatically increase too. Index Linking also applies to your business contents.

  • In Transit

    When goods are being transported e.g. from your premises to a customer.

  • IR35

    This is the name sometimes given to the tax rules regarding off-payroll working for contractors and consultants that work through an intermediary, such as a personal service company.

  • L
  • Labour-Only Subcontractor

    Labour-only subcontractors are usually hired on a project when extra help is needed. They will work under your supervision, use your tools, equipment and materials. You determine working hours, where they work and their daily tasks. Classed as an employee you are responsible for their Health & Safety and you must have Employer's Liability for them.

  • Legal Expenses
  • Legal Liability
  • Liable

    Something you are responsible for or something that we are responsible for paying a claim on.

  • Limit of Liability

    This is the maximum amount your insurer will pay out for an insured event included in your policy.

  • M
  • Minimum Security protections

    These are the protections you must fit to the doors and windows (where these are under your control) of your premises. They must be put into full operation outside of business hours in order for us to consider paying a theft claim.

  • N
  • Nuisance

    Public nuisance is a criminal offence involving environmental danger, loss of amenity or offensive public behaviour. A private nuisance is caused by a person doing something on their own land or in their property, that they are lawfully entitled to do but becomes a nuisance when the consequences of their actions causes damage, inconvenience or discomfort to a neighbour.

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  • O
  • Occurrences

    An event that results in a claim.

  • Optional Cover

    This refers to insurance that's not automatically covered by your existing policy, that you can add for an extra cost.

  • Outstanding Debit Balances

    The money owed to you by your customers minus adjustments for bad debts and abnormal trading conditions.

  • Own Plant Cover

    This covers the theft or damage to plant machinery - things like diggers and generators - that you own as part of your company.

  • P
  • Perils

    When your property has suffered damage or a loss as a result of something that is covered under your policy e.g. fire, flood or theft.

  • Period of Insurance

    The period from the start until the end date of your policy.

  • Policy

    The document that tells you what you're covered for, what you aren't covered for, and the conditions of that cover.

  • Premises

    The location/address where your business trades from.

  • Product Liability

    This insurance covers your business in case a product that you make or sell injures a member of the public or damages their property.

  • Professional Indemnity

    Covers the cost of legal fees and compensation claims you have to pay if you or an employee gives advice that causes your client to lose money or harms their reputation.

  • Public Liability

    Covers the cost of legal fees and compensation claims you may have to pay if a member of the public is harmed, or their property is damaged, because of your business.

  • Q
  • Qualifying Criteria

    The conditions you have to meet if you want to be covered under a policy.

  • R
  • Reasonable Prospects

    Reasonable prospects of achieving a successful outcome exist if, on the balance of probabilities, there is a greater than 51% chance of successfully pursuing a claim.

  • Reinstatement Basis

    We will pay the cost of damage to your property based on the current replacement cost, without any deduction for wear and tear or other depreciation.

  • Renewal Premium

    The amount you'll pay if you decide to renew your policy with us.

  • Risk Address

    The location/address where your business trades from.

  • S
  • Sanitaryware

    This cover things like baths, washbasins, pedestals, bidets, shower trays, sinks and toilets.

  • Schedule

    This document details the risk we are covering (the trade, insured name and risk address), which sections you have selected to cover, the level of cover, the sums insured and also any endorsements that have been applied.

  • Seasonal Increase

    An increase to your stock sum insured for 2 months of the year, of your choosing, to allow for times in the year when you hold higher levels of stock due to your busy period of trading. Our seasonal increase also provides cover around bank holidays.

  • Specific Conditions

    Rules and practices you must agree to when working, such as not working at a certain height or using heat equipment. If you do not comply with these rules, you will not be able to make a claim.

  • Stilage

    A stillage condition determines how you must store your stock if it is kept in a basement or the ground floor of your premises.

  • Subrogation

    We will be entitled to carry out in your name, or on your behalf, all necessary steps to recover costs from any other party, before or after payment is made by us.

  • Subsidence

    The downward movement of a surface (when the ground beneath a building sinks), causing the ground beneath the foundations of a building to become unstable (as the movement pulls the property's foundations down with it). It usually occurs when the ground loses moisture and shrinks due to prolonged dry spells or trees and shrubs which cause the soil to lose moisture.

  • Sum Insured / Sums Insured

    The figure you have asked us to cover you for.

  • T
  • Temporary Employees

    A temporary employee works for the business short term and on an ad hoc basis.

  • Territorial Limit

    The geographical area that your policy covers.

  • Theft of Takings

    This type of business insurance covers you for money that is damaged or stolen. Usually, this kind of policy only covers up to a set amount, for instance, £1,000.

  • Trace and Access

    If damage is caused by a leak but you aren't sure where it's coming from, this insurance covers the cost of locating the source and fixing any damage caused when locating the source, up to the limit stated in the policy.

  • Trespass

    The unlawful occupation of, or interference with, land or property belonging to someone else or the interference of a person or goods.

  • Turnover

    The money paid or payable to you for goods sold (less the cost of purchases) and delivered and for services provided by the business.

  • U
  • Underwriters

    The people who decide whether or not to accept an application for insurance cover.

  • W
  • Waiver

    A waiver is a legally binding part of the policy that removes a real or potential liability for the other party. For example, after a settlement between two parties, one might waive their right to pursue legal action.

  • Working Partner

    A partner in a business who takes an active role in managing it. The opposite of a 'silent partner'.

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