Our jargon buster helps to explain what many of these terms mean in order to enable you to make an informed choice about the products and services that could help your business.
Business Interruption Insurance
Business interruption insurance provides cover against a number of specified events that disrupt your business operations. Each policy is different. Property damage policies commonly provide cover for losses in revenue/profits in the event that your business property is damaged by an insured peril (e.g. fire). Some policies also extend business interruption cover to protect your businesses revenue/profit for other events, including the impact of notifiable infectious diseases or Denial of Access to the insured premises.
The availability of cover will be outlined in your policy and schedule, along with the applicable sum insured and any sub-limits.
An excess is the first amount of any claim that a policyholder must pay. For example, if your policy has an excess of €500 and your machine valued at €5,000 is stolen, you would pay €500 and the insurer would pay €4,500 in the replacement of that machine.
Employers Liability – This is important where you have employees. If an employee is injured at work and attempts to sue you, this would fall under Employers Liability. Employee’s injury is not covered under public liability insurance so if you have employees this cover is very important in keeping your business protected.
You may hear this in two different contexts.
1-Indemnity is another word for insurance. It means that the insurance company will cover/help cover costs incurred by a policyholder if they are sued or have a loss. You may see this word in your policy documents when outlining what is covered or if you experience a claim you will receive correspondence from insurers saying that ‘Indemnity is agreed’ or ‘indemnity is declined’
2-Your landlord may ask you for an Indemnity Letter, this is very common. In simple terms if you indemnify your landlord, you are promising that if someone tries to claim from you, that you won’t also try to bring your landlord in on it. You keep your risks separate even when sharing a mutual space. Your landlord is ‘Held Harmless’ in events that occur within your business.
Legal Expenses Cover
This is another type of insurance you can purchase. It is optional and is not included in all policies. If you are involved in a legal dispute as a business owner for example an unfair dismissal case or libel/slander case, legal expenses cover would allow you access to legal advice and if applicable cover the costs of some/all expenses incurred in relation to legal costs.
This covers your liability as a retailer of products. If the product is faulty and causes injury or a more common occurrence in the beauty industry would be selling a product that you recommend to a client, if it is unsuitable and causes harm you will need products liability insurance along with your malpractice/treatment risk.
Professional Indemnity insurance, put simply, covers the advice you give as a professional. If an issue arose from a recommendation you provided, any guidance or help you gave a client, that person can sue you and it is important that you have the appropriate cover in place.
Any Loss occurring during the Period of Insurance for any accidental Bodily Injury to any person, or loss of or damage to tangible property of any person in connection with the Insured’s profession as stated in the proposal.
Form. Simple put the purpose of a public liability policy is to defend you against claims that may be made against you by a member or members of the general public who suffer injury or damage to their property or person as a result of you carrying out your business activities.
This is the amount that is insured on your policy for different items. At the outset of a policy, you will be asked for the value of your property e.g. contents, stock, building. The figure you provide will become your Sum Insured and that will be the maximum amount that is covered by your policy in the event of an incident.
Underwriters are the people within an insurance company that manage risk. They will decide what to cover, what not to cover and to an extent they would also be in charge of pricing. You may hear a lot about Underwriters at the beginning of your policy or if you make an amendment midterm.
A waiver is the voluntary relinquishment or surrender of some known right or privilege. There may be a waiver on your consent/consultation forms. Waivers are not massively recognised in the Irish Court system. If for example a client did not want a patch test and agreed to sign a waiver instead. In the event of an injury occurring the client will still be able to sue you for negligence and may be successful.
Please note all the answers provided in our FAQ section are simplified and are intended to give you a better understanding of general insurance. It is important to understand that all insurance policies are different and you need to check your policy documents if you have questions about your cover. We are also happy to assist you on if you call or email our office.