Insurance glossary

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ABI

An acronym for the Association of British Insurers - An association representing some 450 insurance companies which account for over 95% of the business transacted by UK insurance companies. It is also the forum through which UK insurance companies collectively liaise with Government Departments and other bodies and come together to set industry standards and codes of practice.

Accidental damage (buildings)

This extends the basic cover to full accidental damage cover. An example of this would be putting your foot through the ceiling while in the attic.

Accidental damage (contents)

This extends the basic contents cover to protect all of the contents against accidental damage caused by the client or their family, e.g. paint spilled on the carpet.

Act of God

An accident or event which happens independently of human intervention, usually due to natural causes such as storm or earthquake, which no human foresight can provide against. Suggesting that an event was an "act of God" may be a defence in English law against a claim for liability since it may be held that it could not have been foreseen or safeguarded against. One of the reasons why it can be inadvisable to drive your vehicle in adverse or dangerous weather condtions.

Actuary

Professional person trained in the technical aspects of insurance and related fields who specialises in the mathematics and the calculation of premiums and reserves.

Addendum

An addition or change to a contract.

Agent

Someone who acts on behalf of another. Traditionally, insurance company salesmen have often been called agents. This has led to a certain amount of confusion since in some situations they are acting on behalf of the client and at other times they are acting on behalf of the insurance company.

Agent recommendation

A product or service provider recommended by estate agents, mortgage brokers or building societies with whom they have often negotiated favourable terms and so can offer a special deal as part of the package. It should never be a mandatory requirement that you must use their selected firm or product, and if they do insist, then it might be worth complaining. Companies often receive financial incentives to recommend one particular firm, product or service - whilst this is perfectly legal, it means they don't necessarily have your best interests at heart.

Agreed valuation

In certain circumstances an insurer may agree to insure a vehicle for a declared value from the outset, as opposed to paying the market value following a claim. This will usually relate to classic cars and Endsleigh do not offer any agreed valuation policies.

All risks

An insurance policy that covers all risks - except those not listed under its exclusions.

Annual policy

As it sounds, an insurance policy that applies for a full year rather than another specified period of time such as a holiday insurance policy.

Approved repairer

A team of insurer approved repairers who operate across the country.

Approved tradesmen

As it sounds, tradesmen may be selected by your Insurer who they may insist that any repair work on your home is carried out. It might be that favourable rates have been negotiated by the Insurance Company or that the tradesman may have been approved due to meeting a certain standard of workmanship.

Arbitration

This is a method employed to arrive at an acceptable agreement for two parties that are in dispute. An independent person or body, often a member of the Institute of Arbitrators, listens to the situations of both parties and comes to a decision that will end up being binding for all concerned.