Commercial Insurance Overview

Glossary of Commercial Insurance Terms - uf you are a Property Owner or a Leasehold, or a Commercial or Private Tenant or are perhaps responsible for arranging insurance on the block of flats or property you occupy, we have listed below some of the terms in every day use in the Let Property and Insurance Markets:-

Anchor Tenant - One or more key tenants, for example companies with well-known brand names are often attracted on to a site to encourage other business to locate to the premises to help maximise occupancy. The school of thought is that if a well-known brand accepts part of a site others will find the development more attractive.

Apportionment - The division of a benefit, or liability proportionate to the interests of the various parties concerned. The process is used for example to determine how the amount pf rent, rates, services charges and other costs are to be borne between the landlord and the tenants.

Base Rent - Where there is provision in a lease for the total rent to be reviewed periodically ( by some method of indexation or other formula) the minimum amount of rent ( if any) quantified in and payable under the lease.

Blue Chip - A term used for security of the highest calibre. It is devised from the highest " Blue chip" used in gambling games. A blue chip company would be a company that would seem to be very secure.

Break Clause - A clause used in a lease that gives the landlord and or the tenant the right in specified circumstances to terminate the lease prior to it's normal expiry date. It usually defines the length of notice and may be subject to contractual or statutory financial provisions.

Brown Land or Brownfield Sites - Land, which has already been used or developed as opposed to Greenfield sites Environmental and pollution considerations are particularly relevant in developing this type of land.

Vans and Commercial Vehicles Insurance - unless vehicles are used for pleasure use only they may need to be insured on a Commercial Vehicle Insurance Policy. It is sometimes difficult to obtain a pleasure use only policy covering a van or Commercial Vehicle as the insurer will feel that the vehicle has been purchased with the intention of carrying goods. Basically this is a sound argument, why buy a van if you don't intent carrying something in the back of it. Insurers tend to ask fairly similar types of questions to Private Car Insurance with an additional set of questions to help them decide on a premium. Whereas Private car insurance relies on a Grouping system , commercial vehicle insurance relys on the carrying capacity of the vehicle. The more the vehicle will carry, the more the insurance will usually cost. Some insurers will cover Vans up to 3.5 ton GVW at the same premium and then charge in bands above this rate. The make and model of the vehicle have little bearing on the amount charged although it is worth pointing out that refrigerated vehicles will usually attract a higher premium. It is also worth remembering that when you buy your commercial vehicle insurance policy, it will not cover the Goods that you carry in the Vehicle. If you are a Tradesman for example, a Builder or Carpenter, you may wish to cover your Tools. It is sometimes possible to obtain Tools cover by extended your Public Liability insurance although be careful with the policy wording as a lot of the time, overnight Theft cover is excluded.If you carry goods for your self or for other people, then the contents of your vehicles can be covered under a Goods in Transit Insurance policy, the premiums for this type of cover are usually dependent on the type of goods being carried coupled with garaging and security arrangement. There are four main types of Commercial Vehicle Insurance.

Motor Traders Insurance - if you mend or repair cars or perhaps buy and sell vehicles then you will require a motor trader's policy with a minimum of Road Risks Insurance. Some people in the past have tried to motor trade or part time motor trade by using the driving other cars extension of a private car insurance policy. This is not correct and if you insurance company discover that you are using your private car insurance policy for business purposes, then you are likely to have any claim refused. There are two basic types of Motor Trade Insurance Policy.

Employers Liability Insurance - this type of insurance was made compulsory by the Employers Liability Protection Act of 1969 and covers almost all employees. The definition of an employee is very wide and can include volunteers, persons on work experience from schools and persons borrowed or hired from other companies. The law also lays down a minimum amount of cover required which at the present moment is £5,000,000 although it is the usual practice of most insurers to provide £10,000,000 cover. As claims arising under this type of cover can take a while to manifest, you are required to keep certificates of Employers Liability for a period of 40(forty) years after they have expired. The act also requires that you obtain a certificate of Employers Liability from your insurers and display it where it can been seen by your employees, failure to display a certificate can lead to a £1000 fine.

Legal Expenses Insurance - this form of insurance, Legal Expenses Insurance has become very popular in recent years. If you run a business, this type of cover can often be purchased quite cheaply, sometimes it is rated on the turn over of your business, the more you turnover, the more your Business Legal Protection Insurance Policy will cost you. Although "General Policies" are on sales, it may be possible to obtain a cover which has been specially designed for your trade. You may find that you already have Legal Expenses insurance included as part of a package of other covers such as Shop Insurance or sometimes even Liability Insurance. If you are an Individual, your insurance advisor should be able to sell your Motorist Legal protection Insurance cover to help you recover uninsured losses under a motor insurance contract. If you are a Homeowner, your insurance advisor should be able to sell you a Legal Expenses Insurance to help you with consumer disputes etc. If you are worried about Legal Expenses, you should always check the insurers Key Facts document before you buy cover to make sure that you have the cover you require. Amongst the sections covered under a Business Legal Protection Insurance policy you may find the following included.

Commercial Insurance Information

Commercial Insurance Overview