Glossary
The words in your policy, in plain English.
A
- Accident book
- A record of injuries at work. Keep entries accurate and store them securely. Read more
- Aggregate limit
- The most a policy pays in total over the policy period, however many claims you make.
- All risks
- Broad cover for loss or damage unless a cause is excluded. It never means everything. Read more
- Authorised insurer
- An insurer with permission to carry out insurance business in the UK. Check the FCA Financial Services Register.
B
- Bona fide subcontractor
- A market term for a truly independent subcontractor with their own tools and insurance. Read more
- Broker
- A firm that arranges insurance between you and an insurer. It may not be the one carrying the risk.
C
- CDM 2015
- The Construction (Design and Management) Regulations, which set health and safety duties on projects. Read more
- Certificate of insurance
- Proof of cover. Employers must display their employers' liability certificate.
- CIS
- The Construction Industry Scheme, under which contractors deduct tax from subcontractors' pay. Read more
- Claims-made
- A policy basis where the policy in force when the claim is made responds, not the policy from when the work was done. Read more
- Contract works
- Cover for the works in progress. Often the same thing as contractors' all risks. Read more
D
- Duty of fair presentation
- The Insurance Act 2015 duty on business customers to give an insurer a fair picture of the risk.
E
- Employers' liability
- Compulsory cover for injury or illness to employees caused by their work. Read more
- Excess
- The part of a claim you pay yourself.
F
- FCA
- The Financial Conduct Authority, which regulates insurance firms' conduct.
- FSCS
- The Financial Services Compensation Scheme, which can pay out when a regulated firm fails.
H
- Hired-in plant
- Machinery you rent. Hire agreements often make you responsible for insuring it.
- Hot work
- Work using flame, heat or sparks. Policies often set conditions on it.
L
- Labour-only subcontractor
- A worker who supplies labour but works under your direction, often with your tools. They may count as your employee. Read more
- Limit of indemnity
- The maximum an insurer pays, either per claim or in total.
P
- Products liability
- Cover for injury or damage caused by goods you supply or fit.
- Professional indemnity
- Cover for financial loss caused by your advice, design or certification. Read more
- Public liability
- Cover for injury or property damage to members of the public or other businesses. Read more
- PUWER
- The Provision and Use of Work Equipment Regulations, covering the safety of tools and machines.
R
- RIDDOR
- The rules on reporting certain workplace injuries, diseases and dangerous occurrences. Read more
- Run-off cover
- Cover that continues after you stop trading, for claims about past work.
S
- Sole trader
- A person who runs a business alone and is personally responsible for its debts. Read more
- Sum insured
- The value you declare for the property covered. Too low a figure can reduce a claim.
U
- Underinsurance
- Insuring for less than the true value, which can reduce what you are paid.