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.

Ending a policy before the policy expiry date.

The insurer.

Documented evidence of insurance - these are not legally required for every policy type.

Raised by the customer when an event causes damage or loss to the insured risk.

A database shared by insurers in a bid to fight fraud.

When insurance is taken out to cover a trade, business or profession.

A mixture of commercial insurance products in one package.

Payment to the third party (e.g. broker) for placing the risk with the insurer.

Wide cover which includes damage to your own vehicle as well as third party liability.

Your mandatory contribution in the event of a claim.

Deliberate misrepresentation by the policyholder to hide a material fact.

A document provided in place of no claims bonus on a fleet policy (subject to the fleet policy completing 12 months of cover).

Insurance for the items in a property.

Notes the type of motoring conviction received (e.g. SP30).

A window of time to cancel a policy without an insurer penalty - beware, this is not applicable on every policy.

What is and is not included in the policy.

A temporary document showing the level of cover before a formal certificate is released.

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.

In insurance, a hazard is anything that creates or raises the risk of loss - whether it’s a situation, a habit or a specific condition. Spotting hazards early can help keep your business protected.

An immobiliser is an electronic device that prevents your vehicle’s engine from starting without the correct key or code - adding extra security. Many modern vehicles include one as standard and fitting an immobiliser might earn you an insurance discount.

Imported vehicles are those built abroad and brought into the UK market.

The inception date is when your insurance cover officially begins.

The extra costs your business takes on to stay up and running after a disruption like a fire or flood.

Insurer's agreement to settle a claim for you within the terms of the policy.

The maximum sum your insurer will pay out on a single claim - or sometimes over the policy period.

An independent broker isn’t tied to any one insurer and may be able to provide more objective advice. Their freedom to search the market can mean you have access to a wider variety of deals.

What is covered by your policy and what your insurer will pay for if you need to make a claim.

When a policy naturally expires and does not renew.

Motor legal expenses cover steps in where standard motor insurance stops. It often comes at a small extra cost and can help you:

• Cover legal fees after an accident
• Recover uninsured losses if you’re not at fault
• Provide a solicitor to pursue injury compensation
• Assist with recovering your policy excess, medical costs or lost earnings

Lloyd’s is a renowned insurance marketplace, established by an Act of Parliament in 1871. It provides the infrastructure, expert staff and services that help insurers and brokers deliver efficient, global insurance solutions - all under one iconic roof.

A Long Term Undertaking (LTU) - previously called a Long Term Agreement (LTA) - offers companies the option to lock in their insurance policy with the same insurer for three years, often in exchange for a premium discount.

In return, the insurer typically keeps rates steady, as long as claims don’t spike and broader market conditions (like changes in Insurance Premium Tax) don’t shift. It’s a smart way to secure savings and stability - just note, discounts usually don’t apply to sections like Terrorism, Data Breach Response or Legal Expenses.

The main driver is the person who drives your vehicle most frequently. It’s crucial to be honest about who this is - declaring the wrong main driver or naming someone more experienced just to lower your premium (known as fronting) can lead to cancelled policies, refused claims or legal repercussions for committing insurance fraud.

See director' and officers' insurance.

If you’re in the media world or regularly create content for your business, media liability insurance helps safeguard you against claims for IP infringement, breaches of confidentiality, privacy violations and issues with comparative advertising.

A mid-term adjustment is any change you make to your insurance policy after it starts but before your next renewal - like updating details, adding cover or changing your level of protection.

Misrepresentation is when you give false or incomplete information while buying insurance or making a claim. Whether it’s intentional or simply careless, it can put your policy and claims at risk.

Vehicle modifications are any changes made to your car that aren’t factory standard - think custom alloys, spoilers, sunroofs or engine upgrades. Always disclose modifications to your insurer when you purchase your policy or you risk your claim being denied or your cover cancelled.

Moral hazard typically refers to risks where honesty and integrity has been called to question. For example previous policy cancellations due to undisclosed material facts, poor or dubious claims history.

Motor insurance is the legal minimum required for all drivers, covering damage or injury you cause to others in an accident. For added protection, consider upgrading to Comprehensive or Third Party, Fire and Theft cover.

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).

Buildings without standard brick walls and a slate or tile roof fall under non-standard construction. This includes homes with a thatched roof or large flat roof areas - features which can impact your insurance options and may require specialist cover.

Specialist insurance aimed at protecting non-conventional properties.

These vehicles are imported into the UK from overseas and do not conform to standard UK specifications. As a result, they typically carry higher insurance costs due to the limited availability of replacement parts, which often need to be sourced internationally.

Not all car accidents require a claim, but always notify your insurer just in case you decide to claim at a later date or the third party pursues a claim - these are called 'information only' or ‘notification only’ claims.

An incident that may trigger an insurance claim.

Optional add-ons, for example key cover, excess protection, etc.

Overinsurance occurs when an item - such as your home or vehicle - is insured for more than its actual market value. This often leads to unnecessarily high premiums, meaning you could be paying more for cover than is truly needed.

Typically refers to the individual applying for or arranging an insurance policy. See also: policyholder or proposer.

In some cases, the legal owner of a vehicle and its registered keeper are not the same individual. For instance, a company car is typically owned by the business, while the registered keeper - responsible for its day-to-day use - may be the person taking out the insurance policy.

Items of plant, machinery and equipment owned by the insured.

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.

This refers to vehicles that were not originally registered in the UK and whose age could not be verified at the time of registration or those constructed using a significant proportion of used parts. Common examples include insurance write-offs, stolen and subsequently recovered vehicles, Ex-military vehicles (e.g. former Army, Navy, or RAF Land Rovers) and imported vehicles.

The requirements that must be fulfilled in order for cover under an insurance policy to apply.

A formal offer provided by an insurer or broker that outlines the premium, cover terms and conditions based on the information you've supplied about the risk.

In the insurance industry, the process of determining policy pricing is known as 'rating'. Insurers calculate premiums based on various factors - as an example, on a motor insurance policy, the rating factors would include the driver's age, location (postcode) and driving history.

The policyholder has a legal duty of care to act reasonably and responsibly, avoiding any actions that could unnecessarily increase risk or lead to claims. This obligation is a standard condition in all insurance contracts.

Reasonable prospects of success typically refer to litigation and are deemed to exist when, on the balance of probabilities, the likelihood of pursuing a claim successfully exceeds 51%. This is also a standard condition in most Legal Expenses insurance policies.

Rebroke (or rebroking) refers to the process of reviewing an existing insurance policy to see if the same or better cover can be obtained - sometimes at a lower premium - from another insurer.

The rebuilding cost refers to the total expense of reconstructing your home from scratch in the event of complete destruction. This includes all associated costs such as professional fees, building materials, labour and the demolition and clearance of the existing structure.

Because property prices fluctuate, the rebuilding cost may not necessarily be lower than the market value or purchase price of your home. It's important to note that while the cost of land is included in the purchase price, it is not part of the rebuilding cost.

If you've previously held insurance for the property, the rebuilding cost - also known as the buildings sum insured - may be listed on your policy schedule or renewal notice. It might also be found in any surveys or valuations conducted on your property. However, if you're relying on an older valuation, be sure to adjust the figure to account for inflation and external factors affecting costs or obtain an updated valuation from a professional company.

See Owner and Registered Keeper.

Making good. Where insured property is damaged, it is usual for settlement to be effected through the payment of a sum of money, but a policy may give either the insured or insurer the option to reinstate or rebuild instead.

The continuation of insurance cover from one period of insurance to the next.

The scheduled date on which your insurance policy is set to renew (typically annually). Depending on your provider, the renewal can occur automatically. At QMT Commercial we never auto-renew your policy - you'll get the chance to review your options with us, at every renewal.

A formal communication issued by an insurer or broker to inform the policyholder that their insurance policy is approaching its renewal date. It outlines the premium for the upcoming cover period and serves as a reminder to review, confirm or update the policy as needed.

A property held by an individual or entity who does not reside in it, but leases it to another party for occupancy.

The retroactive date marks the beginning of continuous insurance cover without any gaps. Commonly used in professional indemnity and directors & officers (D&O) insurance policies, it serves to exclude claims related to work carried out before this specified date. Only incidents occurring after the retroactive date are eligible for cover under the policy.

The specific risk or hazard covered by the insurance policy or a distinct exposure to potential loss.

The physical address from which your business operates or the insured property.

The degree of risk an insurer is willing to accept when providing cover. For instance, a commercial property insurer with a low risk appetite for properties in flood-prone areas may choose to decline cover or apply higher premiums to reflect the increased likelihood of claims.

The act of identifying, analysing and measuring potential risks that may arise in a specific context or environment.

Recognising, evaluating and controlling risks that may affect a company’s income or valuable resources.

The Road Traffic Act 1988 is an Act of the Parliament of the United Kingdom, concerning licensing of vehicles, insurance and road regulation.

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.

Vehicles imported from overseas that meet UK specifications are also known as standard imports. Since they conform to local standards, they typically do not lead to higher insurance premiums.

Underinsurance occurs when the sum insured is insufficient to cover the full cost of loss or damage. To protect yourself from financial shortfall, it’s essential to ensure your cover amount is calculated as accurately and comprehensively as possible.

To address subsidence, one common solution is to reinforce a building’s foundations. This process, known as underpinning, helps stabilise the structure and prevent further movement or damage.

These are costs incurred as a result of an accident or incident that aren’t covered by your insurance policy. Common examples include your policy excess, lost income, personal expenses or compensation for injuries sustained.

An underwriter is a professional who assesses and takes on financial risk on behalf of an organisation. Their job is to evaluate applications, determine the level of risk involved and decide whether to approve cover, and under what terms and premium.

When a property is left empty, it faces a unique set of risks - from vandalism and theft to undetected damage. Because of this heightened risk, most insurers significantly reduce or even remove standard cover if a property remains unoccupied for 30 days or more. To maintain adequate protection, specialist unoccupied property insurance is essential, offering cover for such properties during vacant periods.

The way you use your vehicle plays a significant role in determining your insurance premium. If your driving is limited to personal activities - such as visiting family and friends or going shopping - this is considered low-risk by insurers and typically attracts the lowest rates. However, using your vehicle for both personal and business purposes increases your exposure to risk, which may result in higher premiums due to increased mileage and the potential transport of goods.

Categories of Vehicle Use:

• Social, Domestic and Pleasure (SDP) - Covers everyday personal use, such as visiting friends, family, or shopping. It does not include commuting to work.
• Social, Domestic, Pleasure and Commuting (SDP+C) - Includes all SDP activities, plus travel to and from a single place of work. It also covers journeys to railway stations for onward travel.
• Business Use - Allows use of the vehicle in connection with your job, including travel to multiple work locations.
• Commercial Travelling - Covers activities such as door-to-door sales or frequent travel for business purposes involving customer visits.
• Carriage of Own Goods - The vehicle can be used to carry tools and supplies that you need in the course of your working day (e.g. a scaffolding company carrying poles and boards).
• Carriage of Goods for Hire and Reward - The vehicle can be used to carry goods that you are being paid to transport (e.g. courier or haulier).

Your insurance policy documents will specify the permitted use of your vehicle. Ensuring the correct category is selected is essential for maintaining valid cover and avoiding potential claim issues.

Insurance agreements are founded on the principle of utmost good faith (uberrima fides), requiring both the insurer and the insured to fully and honestly disclose all material facts relevant to the cover. If the proposer fails to meet this obligation - by withholding or misrepresenting key information - the insurer may have grounds to reject a claim or void the policy entirely.

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.

A waiver is a legally enforceable provision within a policy that relinquishes a real or potential claim or liability against another party. For instance, following a settlement, one party may formally waive their right to initiate further legal proceedings.

A warranty is a stringent condition set by the insurer within a policy. It must be strictly complied with and any breach - regardless of intent - can give the insurer the right to reject a claim or deny liability entirely.

Water damage refers to harm caused to your property or belongings due to the intrusion of water. In severe cases - such as flooding - it can render a home uninhabitable. Even less extreme incidents can ruin personal possessions, often requiring costly repairs or replacements.

Wear and tear refers to the gradual deterioration of an item or property through normal use over time. It’s the kind of damage that naturally occurs as things age - like scuffed floors, faded upholstery or a car’s tyres wearing down from regular driving.

In insurance terms, wear and tear is typically excluded from coverage, because it’s considered predictable and unavoidable. Policies are designed to protect against sudden, unexpected events - not the slow decline that comes from everyday use.

Think of it like this: if your sofa gets torn because someone spilled something and it stained permanently, that might be covered. But if the cushions sag after years of lounging - that’s wear and tear.

This refers to the amount subtracted from a claims payout to account for depreciation in the insured property due to regular use and ageing. It reflects the reduction in value over time, ensuring compensation aligns with the current worth rather than the original purchase price. Typically such deductions are not made where the policy is on a ‘new for old’ or reinstatement basis.

This term is commonly used in legal and insurance correspondence during disputes or settlement negotiations. When an offer or communication is marked "without prejudice," it means the contents cannot be used as evidence in court unless both parties agree. This allows for open dialogue without compromising legal positions.

In insurance, underwriters may also use "without prejudice" when settling a claim they believe may not be covered under the policy. Such payments are made without admitting liability and must not be regarded as a precedent for handling similar claims in the future.

A working partner (or active partner) is someone who plays a direct role in the day-to-day management and decision-making of a business. Unlike a silent partner, they are involved in operations and may also represent the business publicly.

A write off (or total loss) refers to a vehicle that is either beyond repair or would cost more to restore than its pre-accident market value. In such cases, insurers typically offer a settlement based on the vehicle’s value before the damage occurred.