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Principal

A principal is a person with an ownership (equity) position in the business, or a person who is the owner of a business and as such the person who delegates and controls the execution of the investment projects.

Pro Rata Cancellation

If a policy is cancelled before its full term is complete, the policyholder will receive a full proportional refund of the premium for the unexpired term. Commercial insurance companies are usually entitled to charge a higher ‘short period’ rate depending on the circumstances of cancellation. This could affect the amount...

Product Liability

The chances are that if you make, repair or sell products, you will need Product Liability insurance to cover your business against claims for damage or injury arising from defects in product design or manufacture.

Professional Indemnity

Professional indemnity insurance protects professionals, such as accountants, solicitors, architects, doctors, and so on, against their legal liability to compensate third parties who have sustained some injury, loss or damage due to their professional negligence.

Proximate Cause

Insurance law requires the policyholder to show proof that the loss was caused by a peril covered by the policy. For instance, imagine a fire destroyed property in a yard and weakened a surrounding wall. On the next night, a gale blew down the weakened wall. What, then, was the...

Public Liability

You can use a Public Liability policy to insure your business against legal liability for bodily injury to third parties or loss of, or damage to, the third party’s property.

Quote

An estimate of the cost of insurance, based on information supplied by the applicant.

Reinsurance

Under this system, one insurer accepts insurance from another insurer. There are various types of reinsurance, as there are specialist reinsurance companies and brokers.

Renewal

When you renew your business insurance policy you are choosing to continue your cover beyond the original term of the policy (normally 12 months).

Renewal Notice

This is a form sent to the policyholder advising him or her that the business insurance policy renewal date is approaching and inviting renewal on payment of the premium. The invitation to renew the policy is extended on the basis of information that the policyholder has already given to the...