Insurance Jargon Buster
We understand that the world of insurance and the terminology used can sometimes be a little overwhelming and confusing. This doesn’t help when looking for your insurance and therefore we want to make it as simple for you as possible to understand what you are purchasing and be better informed when shopping around. Below is our insurance jargon buster explaining the key terms you need to know and what they really mean.
Public Liability Insurance
Public Liability is there to protect your business should a member of the public want to bring civil action against you for injury or damage caused in connection with your business activities. The most common example of this is negligence whereby the third party claims due to your lack of care and attention an injury or damage has occurred. This type of insurance will cover any legal costs associated with the claim. It is important to note that public liability insurance is not a legal requirement however should a claim be brought against you, court cases and compensation can be very costly.
Employer’s Liability Insurance
This type of insurance protects the employer should a claim be brought against them by an employee for injury or damage caused to them whilst working for your business. Employer’s liability is a legal requirement for any business which employs one or more people, each day without the cover can bring fines of up to £2,500.
An Employers Liability policy will cover any costs associated with a claim should the employer be found to be negligent.
Designed to protect those who give advice and instruction within their business activity. A good example of this is a personal trainer who provides advice to a client. If this client, then sustains and injury and claims that the advice given is to blame this insurance will cover legal costs and compensation should the insured be found to be negligent.
Personal Accident Insurance
This type of insurance protects individuals should they sustain an injury during an insured activity. Benefits vary but typically provide lump sums for death and disablement and can also include additional coverage for income protection, rehabilitation and physio therapy costs.
This means behaviour or conduct which has fallen below the expected standard of reasonable care.
This means the personal legally responsible.
The price you pay for the insurance cover.
This may be extra terms and conditions added to the insurance policy which must be abided by for cover to remain valid.
A sum of money paid as compensation. For example, an indemnity limit of £500,00 would mean compensation would be paid up to a maximum of £500,000.