Introduction - If 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.
  
   

Actuary - An Actuary is a professional person qualified to apply mathematical principles to solving long-term financial problems, they are employed by insurance companies in particular life insurance companies to help calculate life expectancy tables and to calculate premiums.

Business Interruption –This is a section of a Business Insurance policy that will cover the loss of profits of a business following an insured peril occurring at any insured premises.

Capacity – This term relates to an insurers ability to write insurance business. The larger the capacity the larger the book of business the insurer will be able to accept.
To increase it’s capacity, an insurer will have to demonstrate that it has adequate reserves to meet any potential losses.

Captive Insurer - An insurance company set up by another insurance company with a specific purpose, usually to write a particular insurance risk or to insurer a specific company.

Cash-in value - The amount you may possibly receive if you decide to cancel an insurance investment and request a cash payout.

CAT Standards – The term CAT stands for for Charges, Access and Terms. These standards were introduced by the Government with regard to ISAs. CAT standards are designed to help you choose between products.

Co-Insurance – This is an arrangement whereby a number of insurers will share a particular risk- this usually happens in the case of large risks where insurers will each share a part of the risk.

Commercial Business – this term usually relates to insurance taken out by a business. The covers are quite various and can be tailored made to suit almost any business be it a shop, restaurant, office etc.

Commissions – these terms relates to monies paid to an agent or broker or intermediary for selling a particular insurers products. Commissions vary greatly from product to product and in some cases, you may be entitled to know what is being earned from your policies. Often the person arranging your insurance wilkl charge fees as well as receiving a commission,this should be disclosed to you

Company Agents – This is a term given to persons selling insurance on behalf of one or a small number of companies. These Agents tend not to be employed by the companies and act as self-employed agents.

Credit Insurance - A form of insurance to protect a business against financial losses caused by the insolvency or default of their customers to whom credit has been granted .

Creditor Insurance - An Insurance policy which will provide protection against the inability to repay a loan, a credit card balance or a mortgage.

Employers’ Liability - Employers Liability is a compulsory type of insurance designed to protect employees. All employers are obliged to take out this form of insurance and the definition of an employee is very wide.

Endorsement - An Insurance policy endorsement alters the scope of cover under an insurance policy. It is usually used to restrict cover but can also be used to increase cover if required. Always study policy endorsements most carefully.

Equities - These are shares s in a company that entitle the owner of the shares to a portion of the companies profits. Any losses are usually restricted to the face value of the share itself

Ex Gratia Payment -Ex- Gratia payments are some times made by insurance companies following a loss when the event was not covered by the policy or perhaps some of the terms and conditions were not complied with. This type of payment is made solely at the insurers discretion.

Credit Insurance - An Insurance policy providing cover for exporters losses arising from non-payment of monies owed.

Exposure - Insurers use this term to express how likely they are to suffer a loss.

Extended Warranty - An Insurance policy that allows the manufacturer’s warranty on a product to be extended for an additional period of time.

Income Protection Insurance - A policy which pays will provide an income for as long as the policyholder is unable to work as a result of accident or illness. The cover will usually last until retirement. Sometimes this type of insurance policy is called Permanent Health Insurance.

Increase in Cost of Working - This is a form of Business Interruption Insurance, the policy will provide an indemnity in respect of additional costs incurred following an insured event under an insurance policy. The amount is designed to help pay for additional costs such as renting premises etc.

Key Facts - An Important document that insurance and investment firms must produce,
As a requirement of the Financial Services Authority to be provided to prospective policyholders. The Keyfacts leaflet is usually a few pages long and give a synopsis of the cover available. It must also list any significant or unusual conditions or exclusions from the policy

Key Man Insurance - This type of Insurance contract covers the death of a key employee on whom a business may depend for its continuance. The pay out can be used to help find a new employee and to cover any loss of profits that the business may encounter

Lapse - An Insurance policy will lapse at the renewal date if the premium is not paid or either party to the agreement do not wish to continue with cover.

Legal Expenses Insurance - There are a variety of Legal Expenses insurance contracts, they are most popular with Motorist to help recover policy excess etc. They also also available under home Insurance Policies and can now be purchased to cover Commercial Legal Expenses as well.

Level Premium - A premium that will stay the same throughout the policy term

Liability - This terms refers to your legal responsibility for causing loss or damage to someone or someone’s property. There are various types of Liability Insurance contract, the most common ones are Public Liability, Products Liability & Employers Liability

Lloyd’s of London - An insurance market based in London where Individuals join syndicates that will Underwrite almost any type of Insurance contracts.

Loading - Insurance policies are loaded for lots of various reasons, mostly because the insurer deems the risk to be higher than normal.

Loss - This is another word for a claim. If you suffer a loss and the peril is covered by an insurance policy, you will be entitled to financial compensation.

Loss Adjuster - Loss Adjusters can be employed by insurance companies but usually that are Independent so both parties to a loss have someone that can negotiate a settlement for them after a loss. .

Loss Assessor - A loss assessor is usually employed by a policyholder to help them document a claim and reach a financial settle with an insurance company. In quite complex claims, a policyholder may not always know what they are entitled to claim for and a loss assessor will help them with this.

Pluvius Insurance - Or Rain Insurance is simply an Insurance policy against bad weather. This type of policy is usually taken out by organisers of events who would incur expenses or suffer a financial loss if an event was cancelled due to bad weather

Policy - A document supplied by an insurance company which provides full details of the cover they are providing. The policy must be read in conjunction with the schedule of insurance which will list the term of the contract etc and list any special endorsements or warranties applying to the policy.

Policyholder - The person to who a policy is issued and the person who will receive a benefit in the event of a loss. The contract Rights Acts states that anyone wanting to receive the benefit of a policy needs to be names on the schedule of insurance and in some cases , particularly with property insurances additional interested parties are listed

Premium - Also sometimes known as consideration, is the amount of money paid for an insurance policy.

Products Liability Insurance- This is usually an extension of a Public Liability Insurance policy and covers liability for death injury or dame to property caused by the sale of goods.

Professional Indemnity - Will provide cover for a business that offers advice who are adjusted to offer incorrect advice to their clients who then suffer a financial loss. This type of cover is usually purchased by Solicitors , Insurance Brokers, Architects etc.

Proposal Form - This document forms the basis of the contract between your self and the insurer. On it, you answer a set of questions in a formal way usually to confirm answers given at the quotation stage. At the base of the proposal form is a declaration which you will have to sign to confirm that all the answers are true and accurate to the best of your knowledge.

Proposer - The individual or entity seeking to take out an insurance policy.

Proprietary Insurance Company - An Insurance company owned by the shareholders.

Public Liability - The insurance of liability for accidental bodily injury or damage to the property of third parties. Can be extended to include Products Liability cover if required.

Regular Premium - A premium payable under a life insurance contract that is payable on a regular basis , usually monthly.

Reinstatement - The term means to make good and most insurers can reinstate or replace an item at their discretion. The reinstatement value of a building is amount that would be required to rebuild it in it’s entirety including all additional cost and expenses such Architects & Surveyors fees and site clearance etc.

Renewal Notice -At the end of a policy term, the insurer will issue a notice inviting renewal of the contract for a further period of time. The Renewal notice will show the new premium required for the period and should state any change in the policy terms.

Reversionary Bonus - A bonus that is added to a policy on a regular basi.

Risk Management -This is a technique that can be applied by a business to identify and help minimise it’s chances of a loss. A business with good risk management techniques, is a much better proposition to an insurance company and may be offered preferential insurance rates. Risk management services may be offered by an Insurance Broker or an Insurer as part of it’s service to client.

Salvage - Following payment of a claim, an insurer may take possession of all or part of a damaged item ( usually a motor car but equally can apply to much larger items such as ships). The insurer will then attempt to sell then item in an effort to recuperate some of it’s outlay

Syndicate - This in insurance terms, relates to a group, of underwriters at Lloyds of London. Any one can join a syndicate and be known as a name providing of course, they can prove they have enough liquid assets.

Technical Reserves - Money put aside to meet specific events, usually for events that have already happened. The four main types of technical reserves are for unearned premiums, unexpired insurance risks, unreported insurance claims and outstanding insurance claims.

Warranty Insurance - This type of insurance policy will provide cover against the cost of repairs to broken items. Cover usually relates to either Motor Vehicles or Household electrical items.

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