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Glossary

Please note: This glossary provides brief definitions of words but is not a legally accurate document, any omissions or incorrect statements are not the responsibility of Master Cover Insurance Services Ltd.

Broker
Insurance broker
This is an intermediary between clients and an insurance companies. Brokers typically experts in a certain field of insurance, capable of using the insurance market to find the best cover for their clients. In the UK brokers must be approved by the FCA to operate legally.

Contractors Insurance
Trade and contracting insurance
Contractors Insurance is specially designed for businesses in the contracting industry, this policy allows you to tailor your ideal cover and includes public liability with employer's liability or contractors "all risks".

Cool off period
Our van insurance policies carry a 14 day cool off period. You may cancel your policy during this period and will only be charged for the time you were under cover (subject to a minimum administration charge of £20).

Declaration
Our declaration stipulates the conditions that will apply to your policy, you must agree to this declaration to take out insurance.

Employers liability
Employers liability provides insurance cover for lawsuits filed by injured or ill employees who take action against their employer.

Excess
The excess is typically the amount that you will have to contribute towards a claim on your insurance. Sometimes these can be set by the client, but are often fixed by the insurer. It is not normally more than a fraction of the total possible claim.

Exclusion
A rule that eliminates cover for certain risks, people, property classes, or locations from insurance cover on a policy. Unlikely or unusual locations are often excluded from insurance cover to allow a lower premium that covers the most likely scenarios.

Legal expenses
LE
An insurance type that will provide the funds to hire legal representation or meet other court costs in the event that a legal claim is made against you.

Limits
Maximum amount of insurance that can be paid for a covered loss.

Personal accident
PA
An insurance designed to pay out a set amount to the policyholder should they not be able to work as the result of an accident. A large lump payment is also normally included to be paid in the event of permanent disablement or death.

Policy
A contract, typically written, from an insurance company to the client stating the details of insurance cover being provided for a premium.

Premium
The price of an insurance policy, or certain components thereof. Typically charged annually or semi-annually.

Premium Tax
IPT
Insurance premium tax
A tax on premiums paid by the clients in addition to the cost of their insurance. IPT is typically around 5% of the policy total.

Professional indemnity insurance
Errors and omissions insurance
Malpractice insurance
PI
Coverage for professional damage caused by negligence or misunderstandings that can result in court cases or legal action.

Public liability
Liability insurance
Insurance for to cover a claim or payment due as a result of bodily injury or property damage caused to another person.

Quote
A quote is an estimated set of premiums based on a client's criterion for insurance coverage. Quotes are converted into policies when the cover and prices are agreed by both client and insurer/broker.

Schedule
A list of the items that are covered under one policy or a list other defined items. Our policy schedules are sent by e-mail upon purchase of a policy.

Total loss
A term that may be used by insurers to describe the situation whereby the condition of an automobile or property is so extensively damaged that repair would cost more than replacement.

Under-cover
This is the state of a policy holder who currently has an active policy.

Under-insurance
The result of the policyholder’s failure to buy sufficient insurance. An underinsured policyholder may only receive part of the cost of replacing or repairing damaged items covered in the policy.

Underwriting
Underwriters
Insurance underwriters are the insurance companies that provide insurance products to insurance brokers. A broker usually has several underwriters so it can compare their prices to offer the client the best policy price available.