The Blyth Valley glossary. While not exhaustive, it's a quick and simple reference to the most common terms you’ll encounter on our site and in your policy documents.
Any one claim
A policy in which the limit of cover you buy is available for each claim you make and unlimited during the policy period. The opposite of an aggregate basis of cover.
Aggregate
The maximum amount the underwriter will pay under a policy in respect of all accumulated claims arising within a specified period.
Applicable Courts
The courts within which a claim must be brought against you in order for you to be covered by the policy.
Broker
An independent person or organisation whose business it is to find the most appropriate insurer to meet the needs of the customer’s risk profile.
Continuous Cover
Cover which remains in place for as long as payment is maintained. This means that you don’t have to worry about renewing the policy each year, and that you avoid the risk of being without cover because you forgot to renew. All our online policies are continuous policies.
Defence Costs
The costs of defending your claim in a court of law. The level of cover in our online policies includes defence costs.
Duty of Disclosure
For holders of continuous policies, a document received each year outlining certain changes to a business which, if they have occurred, will require the policy premiums and terms to be re-assessed.
Endorsement
A change to your policy, and also the name of the document reflecting this.
Excess
The amount you must pay towards each claim.
Exclusion
A clause in the policy which states that a specific business operation is not covered by the policy.
Geographical Limits
In order to make a valid claim your business must restrict itself to activities carried out within a certain geographical area .
Inception Date
The date the policy comes into force. Claims can only be made after this date.
IPT – Insurance Premium Tax
A five per cent tax charged on all insurance premiums.
Jurisdiction
Another way of defining the courts in which the policy will cover you.
Level of cover
A term interchangeable with ‘limit of indemnity’.
Limit of indemnity
The maximum sum payable by the underwriters in the event of a claim being made against you.
Policy
This is the legally binding document which is the evidence of the cover. It consists of the Schedule of Insurance and the Policy Wording. You should check both carefully when you receive your documents.
Policy Period
The duration for which you are covered and the policy is active – usually 12 months. However, our online policies are continuous which means you do not have the hassle of renewing each year.
Retroactive Date
The date from which your work will be covered. Taking out retroactive cover will mean that the retroactive date is before the inception date, ensuring that you would be covered for work carried out in the past.
Run-off cover
Cover for a business which has stopped practising, cancelled their policy but wishes to maintain cover for past work. The premium is significantly cheaper than that for an ongoing business.
Schedule
The document outlining your business details, the cover you have purchased, the policy period and the premium you are paying.
Statement of Fact
The statement of all the information relevant to your application for insurance cover. The statement of fact forms the basis of the contract between you and the Insurer because the Insurer relies on it in order to provide you with cover.
Underwriter
The organisation assessing and accepting the merits of each risk, then deciding the premium to be paid. It is the underwriter who pays out in the event of a claim.
Wording
The document detailing the professional insurance modules purchased, outlining the underwriters’ promise to you and your obligations to them – essentially showing what you are and are not covered for.
