Insurance Jargon Explained

Insurance Jargon Explained


Taking out Insurance can be difficult, first you have to make sure you are qualified enough for your insurance to actually cover you in the event of a claim, it takes from 10-30 minutes of your very busy schedule to make the call or sign up online, then you have to root around in old suitcases and files for certificates and document to prove that you are you. Then comes the small print and insurance jargon can be confusing which is why here at BABTAC we want to make it easy for our members​, below we have explained the most commonly used jargon...

  • Additional Premium
    The increase in premium payable by the insured as a result of policy amendment that may have increased the risk or changed the policy conditions or sum insured. It is payable under an insurance policy when additional coverage is given.

  • Appointed Representative
    BABTAC are an Appointed Representative, we act as an agent for the Principal firm (Balens). The Appointed Representative conducts the regulated activity – selling insurance – on behalf of the Principal. 

  • Breach of Intellectual Property
    In general terms, IP infringement is any breach of intellectual property rights. IP rights are infringed when a work protected by IP laws is used, copied or otherwise exploited without having the proper permission from a person who owns those rights. Examples of an IP infringement are “counterfeiting” and “piracy."

  • Business
    Operations of a health or well-being professional practice or organisation, or agency, healthcare services, personal development services, fitness, beauty and the operation of retreats incorporating but not limited to: treatment, therapies, advice, information, medico-legal work, witness, coaching, consultancy, cosmetic procedures and maintenance, teaching, demonstrations, workshops, lectures, supervision, consultancy and carers as per the business description noted and agreed by Balens.

  • Costs and Expenses
    All reasonable and necessary costs chargeable by the Appointed Representative (BABTAC) and agreed by Balens.

  • Client Confidentiality Protection
    A breach of confidentiality When information is provided in confidence by a client and is disclosed to someone outside the firm without permission. ... Professional indemnity cover is designed to offer comprehensive cover when this happens.

  • Conditional “unlimited” or time restricted run off cover
    Many wordings give conditional “unlimited” or time restricted run-off cover if you cease the policy at any time. A wide range of activities can be insured, as well as non-treatment related work and advice. Flexible underwriting to accommodate changes in your practice, fast turnaround of documents and queries.

  • Disclosure of information
    Your duty of disclosure: Before you enter a contract of general insurance with an Insurer, you have a duty, under the Insurance Act 2015 Law Reforms to disclose to the Insurer every matter that you know or could reasonably be expected to know, is relevant to the Insurers' decision whether to accept the risk of insurance
  • Data Processing System
    Any computer or data processing equipment or media or microchip or integrated circuit or any similar device or any computer software or firmware.
  • Employee
    Any person under a contract of service or apprenticeship with the insured. Any person hired by the insured. Any person connected to the insured by work experience. Any self-employed person working under the supervision of the insured .Any volunteer working for the insured
  • Injury
    Bodily injury, illness, mental injury, metal anguish, nervous shock or disease (including death)
  • Insurer
    Zurich Insurance PLC
  • Insured
    The insured stated in the schedule including and not limited to health or well-being professional, teacher, student, clinic, school, agent, other health, fitness, beauty or well-being related business as described herein.
  • Insured Person
    You and the directors, partners, managers, employees and any other individuals declared to us by you.
  • Level of Liability
    The amount of liability insurance you need depends on the work you do and whether your clients expect a certain level of cover. BABTAC offer £6 million. When you're choosing a cover level you should think about the possible size of compensation demands.
  • Libel and Slander Cover
    A professional indemnity insurance offers cover for actions brought against the policyholder for libel and slander. The insurance company pays the cost and expenses in respect of such libel and slander. ... Slander is a defamation which is done through spoken words. Libel is a published false statement that is damaging to a person's reputation
  • Loss of reputation Expenses
    Reputational risk, often called reputation risk, is the potential loss to financial capital, social capital and/or market share resulting from damages to a firm's reputation. This is often measured in lost revenue, increased operating, capital or regulatory costs.
  • Medical Malpractice
    A medical professional liability insurance policy covers bodily injury or property damage as well as liability for personal injury such as mental anguish.
  • Negligence
    Negligence is a failure to act in a way that a reasonable person would when faced with the same situation and circumstances. In insurance, the policyholder might be negligent, or it might be another party.
  • Professional Liability
    Professional liability insurance (PLI), also called professional indemnity insurance (PII), is a form of liability insurance which helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit. The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder. These are causes for legal action that would not be covered by a more general liability insurance policy which addresses more direct forms of harm. Professional liability insurance may take on different forms and names depending on the profession, especially medical and legal, and is sometimes required under contract by other businesses that are the beneficiaries of the advice or service.
  • Public Liability
    Public liability insurance covers the cost of claims made by members of the public for incidents that occur in connection with your business activities. Public liability insurance covers the cost of compensation for: personal injuries. loss of or damage to property.
  • Product Liability
    The difference between public and product liability insurance. Product liability covers you against injury or damage caused specifically by an item you have manufactured, sold or supplied.
  • Premium
    An insurance premium is the amount of money an individual or business pays for an insurance policy.
  • Pro-Rata Payment
    Meaning that the payment cost will cover you for the remaining part of your policy and will not be backdated to the start. Once you renew, you will then be charged for the full term of your policy.
  • Period of Insurance
    The period in which we have agreed to cover the Insured person.
  • Principle Firm
    Zurich Insurance Ltd
  • Premises
    Any place where a health professional or a health-related business undertakes activities in the course of business.
  • Territorial Limits
    Anywhere within the limits of Great Britain, Northern Ireland the Channel Islands or the Isle of Man.
  • Upgrade of Cover
    Upgrading your insurance is easy! All you must do is call us and ask for an upgrade in your insurance. We will refer your request to our brokers who will respond with upgrade options.
  • Underwriter
    Zurich Insurance Ltd
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