QMT Jargon Buster

Cover for accidental damage to goods, e.g. dropping something and damaging your shop floor.

An unpredictable event, sometimes excluded from policies, although damage arising from natural events such as floods are usually covered.

An additional document detailing changes to your insurance contract (also referred to as endorsement).

Optional cover that is not included as standard on your policy.

An additional cost for a change on your policy.

This business interruption cover helps to protect the projected profits of a new business or expansion.

A broker who seeks cover from different insurers, e.g. comparison sites.

A change to the policy during the course of the year.

The total mileage you do in a year.

Used to show how much interest you will pay if paying by direct debit.

The price of your insurance for the year, subject to no changes.

If you and your insurer cannot agree on a claim settlement, you both hire a neutral appraiser to help settle the matter.

When a person is injured as a result of an accident. Includes illness, disease and death.

Also referred to as No Claims Bonus - you will typically accrue 1 year of no claims bonus for each year you do not make a claim on your motor policy. No Claims Bonus can be reduced or lost in the result of a claim being recorded as fault by your insurer. No Claims Bonus can only be used on one policy at a time unless the insurer allows an introductory or mirroring scheme. You may be asked to provide proof of your No Claims Bonus and this will be subject to the insurer’s acceptance criteria. Depending on the number of years No Claims Bonus you have, you may receive a discounted rate on your next policy (also referred to as No Claims Discount).

QMT Commercial / QMT Commercial are an example of a broker. We are an intermediary who help customers find suitable insurance products from a range of insurance providers and wholesale brokers.

Buildings insurance covers the building structure and permanent fixtures and fittings that you own or are responsible for (e.g. kitchens and toilets). Your buildings cover may also extend to external buildings, glazing, pipework and cabling.

A wide range of commercial insurance products to help to protect your business against unforeseen losses.

A type of insurance that protects your business income and revenue if you are temporarily unable to trade due to insured incidents like fire, flood, vandalism, etc.

Physical damage or financial loss suffered by the insured.

If an insurer determines that they cannot provide coverage for your business for any reason, this is referred to as a declined risk.

The deductible or excess is the amount which must be exceeded to enable a claim to be made. Only the amount over and above the deductible can be claimed.

Work that has not been completed properly or does not meet a satisfactory standard.

The portion of a premium that, after reaching an agreement with underwriters, is payable in instalments, typically on a quarterly or half yearly basis.

Often referred to as the ‘meaning of defined terms,’ this section describes the meaning of important terms, allowing you to refer back for clarification whenever these terms are mentioned later in the document.

When damage or an incident nearby impedes access to your premises, which may impact your business.

Depreciation refers to a deduction for the wear and tear of your belongings. Although most policies now settle claims on a reinstatement or ‘new for old’ basis, there are still some policies which will make a deduction for certain items based on their age.

This type of coverage is commonly referred to as management liability insurance, or simply D&O insurance. Its purpose is to help safeguard business owners against claims of wrongful acts and the inherent risks of operating a business. It is accessible to companies of all sizes, ranging from small startups to large organisations.

Employers are required by law to have insurance in place which covers their liability for loss or damage, injury or illness sustained by employees during the course of their employment.

Is a change to the standard cover which typically extends or limits cover or may stipulate specific requirements, for example a minimum level of security.

Also known as Professional Indemnity Insurance.

The ‘deductible’ or excess is the amount which must be exceeded to enable a claim to be made. Only the amount over and above the deductible can be claimed.

Risks or events which are not insured under your policy.

A payment issued by an insurer to a policyholder when there is no contractual obligation to do so.

Can refer to the potential losses an insurer may face for example if it is insuring a number of businesses in an area prone to flooding, or can refer to the potential loss a business may suffer following a risk assessment.

It’s essential to give insurers a clear and complete picture of your risk - sharing every relevant detail you know (or should know) about your business and assets. This helps insurers assess your cover accurately and avoids confusion or issues down the line.

The FCA (Financial Conduct Authority) is an independent regulator overseeing UK financial services, making sure providers play by the rules and your rights are protected. They keep the financial market fair, transparent and safe for everyone.

‘Fronting’ happens when a more experienced driver is put as the main driver on the policy, while someone else (like a newly qualified driver) is actually the main user of the vehicle. It might seem like a clever way to save on premiums, but it’s illegal. If you get caught, your insurance could be cancelled, your claim refused and you could even face fines.

General insurance covers just about everything except life insurance, such as motor, property, fire, marine and more.

If you run a business that welcomes paying guests, guest house insurance is vital. It helps to safeguards your livelihood against unexpected setbacks like fire, flood or theft - helping you get back to hosting bookings as soon as possible.

The carrier’s legal responsibility toward passengers.

A peril refers to any specific event or circumstance that can cause damage, loss or injury and is typically something your policy is designed to protect against. Think of it as the actual cause of harm that triggers a claim (e.g. fire, theft, flood, etc).

The duration in which the insurer holds responsibility for claims under the policy terms.

A benefit-based insurance policy for injuries or fatalities resulting from accidents or sickness.

Personal possessions cover is a valuable addition to contents insurance, offering protection for items you typically carry or use outside the property. This can include valuables like cash and electronic devices.

Endorsements are added to your driving licence following conviction for a motoring offence, such as speeding. These typically lead to higher insurance premiums, as they indicate increased risk to insurers.

A policy is the formal contract between you and the insurer. It outlines exactly what is covered, under what conditions and for how long. Think of it as the rulebook for your protection - it spells out your rights, responsibilities and the insurer’s obligations.

Every insurance policy includes a section known as 'policy conditions,' outlining the general terms that apply to the entire contract. Additionally, individual covers within the policy may have their own 'section conditions' - specific rules or requirements that must be met for that particular cover to remain valid.

The individual to whom the insurance policy is formally issued. See also: insured.

A formal document provided by the insurer that constitutes part of the insurance contract. It outlines key details such as the duration of coverage, applicable policy sections and any relevant excesses or endorsements.

A summary document provided by the insurer outlining key policy provisions, notable benefits and any major exclusions or limitations that may apply. Most insurers issue a summary in the form of an Insurance Product Information Document (IPID) which is a regulatory document and was previously called Key Facts.

A formal document provided by the insurer outlining the terms and conditions of the insurance contract. It serves as legal proof of the agreement to provide cover and is accompanied by a Schedule, which highlights any specific variations or endorsements to the standard terms.

It’s important to inform your broker or insurer about any medical conditions you currently have or have experienced in the past - these are referred to as 'pre-existing medical conditions'. Some policies (e.g. travel insurance) will exclude these from cover or may allow them (subject to an additional premium or specific terms).

Refers to the risk address, household or property that requires cover.

The payment made in exchange for cover under an insurance contract.

These policies provide cover for the insured’s legal responsibility in cases of bodily injury or property damage resulting from defects in goods that have been sold, supplied, installed, repaired, distributed, manufactured or tested by the insured.

This policy provides protection for professionals against legal liability to third parties for injury, loss or damage resulting from their own professional negligence or that of their employees. This product is often beneficial to organisations who provide advice and consultancy.

An insurer may reduce the amount paid on a claim in proportion to the premium received if they determine that the risk was not fairly or accurately presented. In cases where the insurer would have still accepted the risk but applied a higher premium, the claim payment may be adjusted accordingly.

See Statement of Fact. A Proposal Form, however, requires the applicant’s signature.

By paying an additional premium, you can protect your no claims bonus in the event of a claim (subject to terms and conditions). This allows you to retain your full no claims discount when renewing your policy.

See Insurer.

This type of insurance provides protection against legal liability for accidental injury to third parties or damage to their property arising from your business activities.

The process by which an insurer recovers all or part of the value of an insured item after a claim has been settled. Typically, the insurer takes possession of the damaged or lost item, sells it and uses the proceeds to offset the cost of the claim.

See Policy Schedule.

Physical security, for example, an alarm system, immobiliser or vehicle tracker.

An element of contents insurance offering increased protection at peak times, such as holidays or special occasions. This often benefits sectors like retail and hospitality during periods like Christmas, when the volume of stock they hold rises.

The financial compensation provided by the insurer in response to an insured loss.

The highest amount your insurer will pay to cover an individual item under your property insurance policy. This limit is determined by the insurance provider and applies to each item separately, ensuring cover does not exceed the specified value.

A classification of vehicle use that excludes commuting and business-related travel.

Specific rules and safety practices you are required to follow while carrying out work - such as restrictions on working at height or using heat-producing equipment. Failure to comply with these conditions may result in your insurance claim being denied. Also referred to as Working Conditions Clause.

Although specific exclusions can differ between insurance policies, there are common exclusions typically found across most policies. These outline the situations or conditions under which a claim will not be covered or paid by the insurer.

A document that captures details supplied by the proposer, which the insurer uses to determine the quotation, including pricing and terms. It serves the same function as a proposal form and is relied upon when offering cover.

A requirement that outlines how stock must be stored when kept on the ground floor or in a basement. Typically, it mandates that items be elevated - such as on pallets or shelving - to reduce the risk of damage from flooding or damp conditions.

Business stock insurance protects against damage, theft or loss of key supplies.

These are specific requirements that must be fulfilled before an insurance policy becomes fully effective. Think of them as essential checklist items - such as providing documentation or implementing safety measures - that ensure your cover is active. Also referred to as Policy Conditions Precedent.

A term used by insurers to indicate provisional acceptance of an insurance policy, contingent upon a formal inspection. The surveyor’s report is required to confirm the appropriate premium and policy terms before full coverage is finalised.

This occurs when an insurer settles a claim but another party was legally liable for the loss. In such cases, the insurer may pursue recovery of part or all of the amount paid from the third party deemed liable.

Subsidence refers to the gradual sinking of the ground beneath a structure, leading to instability in the building’s foundations. This downward shift typically occurs when the soil loses moisture and contracts - often triggered by extended periods of dry weather or vegetation such as trees and shrubs drawing water from the ground. As the earth shrinks, it can pull the foundations down with it, potentially causing structural damage.

The selected level of cover under the terms of an insurance contract. May also be referred to as Limit of Indemnity.

See Policy Summary.

A term often used within the insurance industry to refer to black box technology. While less familiar to the general public, it describes systems that monitor driving behaviour using in-vehicle devices or apps, helping insurers assess risk and tailor premiums accordingly.

An individual hired to support a business for a limited period, often on an as-needed basis. Their engagement is typically short-term and flexible, depending on the company’s immediate staffing requirements.

Refers to the legal and practical conditions under which property, land or buildings are occupied and held. This includes the type of ownership or lease arrangement, as well as any rights or responsibilities associated with the occupancy.

The duration for which your insurance policy remains active, along with the agreed method and frequency of payment - whether through instalments, monthly direct debits or another arrangement.

The specific geographic region where your insurance policy provides protection. This defines the boundaries within which claims are valid and cover applies.

A form of business insurance that provides protection against the loss of money due to theft, damage or other insured events. Cover is typically limited to a specified maximum amount - often around £1,000 - depending on the policy terms.

An individual or entity making a claim against the insured. In insurance terms, the insurer is considered the first party, the insured is the second party and the person bringing the claim is referred to as the third party.

The minimum level of motor insurance legally required (excluding Road Traffic Act cover). It provides protection solely for injury or damage caused to other people, vehicles or property as a result of an accident where the insured driver is at fault. It does not cover any loss or damage to the insured’s own vehicle.

An enhanced level of motor insurance that builds on basic third party cover by also including protection against loss or damage caused by fire or theft of the insured vehicle.

Refers to the insured's legal responsibility for injury, damage or loss caused to individuals who are neither part of the insurance contract nor employed by the insured. This cover can protect against claims made by external parties affected by the insured’s actions or operations.

The loss, theft, or damage of essential tools and specialist equipment is a serious concern for tradespeople across the UK. Whether it’s everyday items like hammers and saws or high-value power tools and bespoke gear, this type of insurance helps protect the equipment you rely on to keep your business running smoothly.

If a leak causes damage but the source isn’t immediately clear, this insurance helps cover the cost of locating the source, including repairing any damage caused during the search - up to the policy’s stated limit.

Vehicle tracking systems are electronic devices fitted to vehicles that allow owners or authorised parties to monitor their location in real time. Most modern systems use GPS technology for precise and reliable tracking, often paired with cellular or satellite communication to transmit location data to a remote user. In addition to enhancing security and fleet management, having a tracker installed may also qualify you for insurance discounts with certain providers.

The income earned or receivable from goods sold - after deducting the cost of purchases - and delivered, as well as from services rendered by the business.

These are possessions that may be classified under the high-risk category but exceed the standard value limit set for such items. They are often referred to as high-risk items due to their susceptibility to theft or damage and typically require separate listing or additional cover within your insurance policy.

A valuation is typically a formal assessment conducted by a qualified expert to determine the monetary worth of an asset - such as a property, antique or other valuable item.

A voluntary excess is an optional amount chosen by the policyholder to contribute towards any future claim. By agreeing to a higher excess, the policyholder usually benefits from a reduced insurance premium.

Commonly referred to as a vehicle logbook, the V5C is the official registration document issued by the Driver and Vehicle Licensing Agency (DVLA). It records key details about your vehicle, including its specifications and the identity of the registered keeper. When you purchase a car, a new V5C is sent to you by post, confirming your status as the registered keeper. It’s essential to retain this document, as it may be required by your insurer, for taxing your vehicle, or when selling it on.