Business Insurance Glossary of Terms

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  • Asset Protection Insurance (also known as Property Insurance)

    Insurance that protects the buildings, equipment, stock and possessions of your business from physical threats such as fire, theft or malicious damage.

  • Benefit

    An amount of money paid to you as the result of successful insurance claim.

  • Benefit Limit

    The total amount we will pay you under your policy for each level of cover selected. Check the PDS and your policy document for details of the benefit limits and conditions that apply to your cover.

  • Breakdown

    The sudden malfunction of property caused by mechanical, electrical or electronic defect that requires repair or replacement before the property can resume normal operation.

  • Business Interruption

    Being unable to operate your business in a similar manner as before the damage occurred.

  • Business Interruption Insurance

    Insurance that protects businesses against financial losses if you have to temporarily halt operations for some reason.

  • Business Services

    The primary business services undertaken by you and listed on your policy document.

  • Certificate of Insurance (also known as Policy Document)

    A document outlining the contract of insurance between you and your insurance provider, identifying the policy number, commencement date, cover end date, business address, sum insured and schedule of benefits, including benefit limits.

  • Claim

    Any indemnity that you seek from your insurance provider in respect to:

    1. your legal liability to compensate others for personal injury and/or property damage;
    2. damage to your property;
    3. breakdown of your property
    4. theft of your property; or
    5. lost profit
  • Commencement Date

    The date when your insurance cover first starts, as shown on your policy document.

  • Cooling off Period

    The period of time after you buy your policy, during which you can cancel your policy and receive a full refund of any premiums you have paid. Our small business insurance has a 21 day cooling off period.

  • Cover

    The insurance cover applying to your business, as shown on your policy document.

  • Damage

    Physical damage, destruction or loss, but not accidental damage of any kind

  • Directors and Officers Insurance

    Insurance for your company's officers against the financial consequences of claims by shareholders, employees, regulatory bodies or creditors relating to 'wrongful acts' by your business, such as mismanagement of funds.

  • Duty of Disclosure

    When you apply for business insurance you will be asked to provide us with complete and honest information about the natures of your business and the assets you wish to insure. If you conceal or leave out important information your insurance provider may cancel your policy and we may not pay any claim you make.

  • End Date

    The date upon which your policy terminates and benefits cease. The end date is shown on your policy document. If the policy is cancelled, either by you or by your insurance provider, then the date of cancellation will be deemed to be the end date.

  • Excess

    The amount you must pay for each incident if you make a claim. This will be deducted from the amount we pay when we settle your claim. The amount and type of excess that applies is shown in your policy document.

  • Exclusion

    Circumstances in which you will not be covered under your insurance policy, for which you are not able to claim any benefit, for example flood damage. Check the PDS and your policy document for details of the exclusions that apply to your policy.

  • Flood

    The covering of normally dry land by water that has escaped or been released from the normal confines of any lake; or any river, creek or other natural watercourse, whether or not altered or modified; or any reservoir, canal, or dam.

  • Flood Insurance

    Damage or business interruption as a result of flooding is excluded from many property insurance products, in order to keep premiums affordable. Some insurance providers offer it as an optional extra, for which you pay an additional premium, or as a standalone insurance policy.

  • Insured Event

    Any of the listed events against which you are covered. Check the PDS for full details of what is and isn't covered.

  • Lost Profit

    Profit that you would have received during the period of interruption, less any profit that you actually received during this period

  • Managers Insurance

    Insurance that protect your company and your senior management against employment liabilities and claims by shareholders, employees, regulatory bodies or creditors relating to 'wrongful acts' by your business, such as financial mismanagement.

  • PDS (Product Disclosure Statement)

    Document setting out in detail the exact terms and conditions of an insurance product, including any exclusions. It is vital that you read and understand the PDS before taking out any form of insurance.

  • Plant

    Electrical, mechanical and unfired pressure plant, boilers and pressure pipe systems.

  • Policy Document (also known as a Certificate of Insurance)

    A document outlining the contract of insurance between you and your insurance provider, and identifying the policy number, commencement date, cover end date, business address, sum insured and schedule of benefits, including benefit limits.

  • Policy Period

    The time during which your insurance provider provides cover, as specified in your policy document. The first policy period starts on the commencement date and ends on the end date.

  • Premises

    Your business premises shown in your policy document.

  • Premium

    The amount you pay for your insurance cover. The cost of your premiums will depend on a number of factors including the size and nature of your business, the sum you wish to insure and your location.

  • Professional Indemnity Insurance

    Insurance that provides financial protection against legal costs or potential damages, for anyone with specialised skills or qualifications who is paid for giving advice to others.

  • Profit

    Income received for goods sold and/or work conducted in with the course of your business, less expenses incurred for such activities

  • Property

    Any physical property at your premises which is owned by you or is in your legal possession and control and that is used for the purpose of providing your business services unless otherwise excluded under your policy.

  • Property Insurance (also known as Asset Protection Insurance)

    Insurance that protects the buildings, equipment, stock and possessions of your business from physical threats such as fire, theft or malicious damage.

  • Product Liability Insurance

    Insurance that protects you against the risk that one of your products causes damage or injury to a person or another business.

  • Public Liability Insurance

    Insurance that protects your business against the financial risk of accidents which happen as result of your business activities.

  • Small Business Insurance

    An insurance package that provides essential cover for most of the risks facing SMEs, including property damage, business interruption and public liability, in a single, affordable policy.

  • Storm

    An atmospheric disturbance evidenced by violent wind (including cyclones and tornadoes) that may be accompanied by lightning, rain, hail or snow. Persistent rain by itself is not classified as a storm.

  • Sum Insured

    The amount shown in your policy document.

The information on this website, brochures and other documentation is of a general nature only and does not take into account your personal financial situation, needs or objectives. Therefore before you decide to buy any insurance product it is important that you read its Product Disclosure Statement and Financial Services Guide to make sure the product is appropriate for your needs.