Insurance Premium Tax
A tax on insurance premiums, set at 5% of the overall premium. Sometimes referred to as IPT, this tax is not recoverable.
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Insured
The insured is also referred to as the policyholder – the person(s) protected in case of a loss or claim.
Insurer
The insurance company providing cover.
Intermediaries
The ‘middlemen’ of insurance who arrange a contract between the policyholder and the commercial insurance company. The main types are Brokers and Agents, who are paid a commission by the insurer.
Key Man Insurance
Key Man insurance is designed to protect your business against the loss of income resulting from the disability or death of an employee in a significant position. Click through for more details on Key Man Insurance.
Lapse
A business insurance policy lapses when cover is terminated because of non-payment of the premium within a specified period of time.
Liability
An obligation that legally binds an individual or a company. When one is liable for a debt, you are responsible for paying that debt. For example, if John hits Jane’s car, John is liable for the damages to Jane’s vehicle because John is responsible for the damages. In the case...
Limit
Maximum amount a policy will pay either overall or for a particular item of cover.
Limit of Indemnity
The maximum sum that the insurer will pay for any event, occurrence or accident, or in aggregate in any one year.
Limits of Liability
Liability policies normally contain a Limit of Liability stating the maximum amount insurers will pay for a particular event. This limit usually applies to the total of all claims arising out of a single event. Some policies will also have a limit set for each policy period. The only exception...