A comprehensive glossary of terminology and acronyms used in the global insurance market
What follows is an alphabetical glossary of Broadform liability insurance terminology. Note that readers should consult the specific policy wordings and should not rely on these plain language, abridged explanations of terms, conditions and exclusions. Language used in policy documents also varies from insurer to insurer and across different jurisdictions so that should also be taken into account.
Excludes claims related to the ownership or use of aircraft or watercraft. Does provide cover for smaller inland water vessels (15m in length)
Excludes liability arising from the operation of airports or airstrips. Does provide cover for airstrips without control tower operations.
Excludes claims related to asbestos exposure or diseases.
Reflected in the policy contract to establish what sort of business activities are covered.
Terms dictating when and how an insurance policy can be canceled. Normally 30 days by either party.
Provides conditions for time periods and circumstances as to when the insurer must be notified of claims or losses.
Costs for preparing documents needed to support an insurance claim.
Excludes coverage for losses related to the transmission of communicable diseases.
Covers ongoing plant hire costs when the insured has damaged third party plant, leased to them.
Determines what the date of loss would be where injury or damage has resulted from some sort of continuous exposure to the cause of the loss.
Coverage for liability from construction activities conducted by or for the insured.
Coverage for events where a third party is alleging the insured has breached a copyright or patent.
Provides separate coverage for claims between different insured parties under the same policy. Useful where multiple insureds are covered under one policy.
Excludes liability for damage to property under the insured's control. There are some carvebacks for things like rented property, property temporarily in custody, parking facilities.
Brings cover back into the policy for third party property in the insureds custody and control.
Excludes coverage for incidents related to cyber risks such as hacking or viruses.
The loss of possession or control of, or physical Damage to tangible property or interference with servitude or right of access or other infringement of real or personal rights to the use of property.
Legal term used to describe the compensation being claimed by the third party.
Excludes claims involving the loss or damage of electronic data.
The amount of the claim that the insured is responsible for.
Liability coverage for written or spoken defamatory statements. Also note this isn't suitable for professionals - PI cover more appropriate.
Coverage for liability arising from poor or faulty workmanship. Note that the part that was worked in is excluded. Only the resultant damage is covered.
Legal expenses for defending against claims, usually covered by the insurer.
Excludes coverage for intentional or deliberate wrongful acts.
Excludes claims related to corruption or loss of electronic data.
Provides coverage for differences in conditions or limits for operations in specific regions. Useful for companies with operations in other countries.
Excludes liability for damages to electronic data.
Covers employee claims for injury during the course of employment. Note that COID actually picks up claims here so its contingency cover.
Covers claims related to employment issues such as wrongful termination or discrimination.
Liability coverage for mistakes or negligence in professional services.
An incident that triggers coverage under an insurance policy.
Provides additional liability coverage beyond the insured’s primary motor insurance policy.
Coverage for liabilities associated with exhibitions, including stand setup or breakdown.
Allows claims to be reported after the policy expires under certain conditions.
Excludes coverage for claims involving fraudulent acts.
Excludes liability related to fungi or mould exposure and remediation.
Covers liability for negligent advice given without any charge by the insured.
Covers claims related to minor medical services provided incidentally.
Defines the insurer's obligation to compensate for covered losses.
Extends coverage to third parties as specified in the policy. This is useful when the insured is using subcontractors.
Covers financial losses arising from a product or service failing to perform as intended.
Refers to bodily harm, illness, or death caused by an insured event.
Excludes coverage for claims arising due to the insureds insolvency.
The entity providing the insurance coverage.
Allows the insurer to settle claims on behalf of the insured.
Defines the jurisdiction for interpreting the policy terms and conditions. Not to be confused with the jurisdiction in which a claim can be brought by a third party which is worldwide (excl North America)
Coverage for damages caused by the removal or weakening of support to another's property.
Excludes liabilities assumed under a contract which wouldn’t normally exist without the contract.
The maximum amount the insurer will pay for a claim or set of claims.
Excludes claims for agreed financial penalties stipulated in contracts.
Coverage for liability arising from the loss or damage of important documents.
Requires the insured to notify the insurer of significant changes that affect the risk.
Costs incurred to prevent further loss or damage after an incident.
Covers liability for incorrect or inadequate advice given in relation to products or services.
The process of informing the insurer about a potential claim.
Excludes liability for incidents involving nuclear energy or radiation.
An event resulting in a claim, often within the current policy period or after the retroactive date.
Defines the core coverage and scope of the insurance policy.
The insurance contract outlining the terms, conditions, and coverages.
The release of contaminants that cause environmental damage. Cover is limited to sudden and unforeseen events (not gradual).
Coverage for costs incurred to clean up pollution on the insured's premises.
The introductory section of the insurance policy outlining its scope and purpose.
Allows for premium adjustments based on actual business data after the policy period.
Specifies when and how the insured must pay premiums to maintain coverage.
Excludes claims for events that occurred before the policy start date or retroactive date.
Goods or services provided by the insured. These are normally tangible products (not things like software or data).
Coverage to replace a product which fails to meet specified performance standards.
Covers third-party financial losses resulting from a product failing to perform as expected.
Coverage for liability due to harm caused by defective or harmful products.
Coverage for costs related to recalling defective products from the market.
Defines professional services in the context of excluded activities or informs how the errors and omissions extension will respond.
Insurance covering third-party claims for bodily injury or property damage. Not limited to the insureds premises (work away is covered).
Costs incurred to manage public relations and reputational damage following an insured event.
Excludes coverage for punitive damages awarded by courts.
Covers financial losses not resulting from physical damage or injury and not related to the supply of a product.
The earliest date an event can occur for coverage to be provided under the policy.
Excludes coverage for activities/entities/persons violating international or national economic sanctions.
Excludes coverage for settlements made without insurer approval.
Excludes coverage for claims related to sexual abuse, molestation or harassment.
Covers liability for damages resulting from uncontrolled fire spreading from the insureds property.
Covers costs incurred to prevent a fire from spreading to third-party properties.
Covers legal costs for defending against criminal allegations related to statutory violations.
Defines the geographical area in which the insurance policy provides coverage.
The individual or entity covered under the policy.
Excludes claims related to the manufacture or sale of tobacco products.
Excludes liability for transporting hazardous materials.
A mode of transportation, often referring to land vehicles in policy terms.
Excludes liability for damages arising from the use of vehicles. There are some carvebacks in liability policies.
Excludes coverage for claims related to war or terrorist acts.
Coverage for liability related to property damage during storage or transportation.
Liability coverage for wrongful arrest, false imprisonment, or defamation during an arrest.
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