Insurance Terms Glossary

So that dreaded time is here! It’s time to take up or renew your existing insurance for your Private Road, Unadopted Road, Driveway, Land or Woodland.

You have the option of choosing additional covers to match your needs. It’s time to read through Insurance documents and try to decipher the terms used.

Click here to go back to the Types of Insurance page.

What do all those Insurance Terms actually mean?

Rather than having to Google what each part of your Private Roads insurance policy means, use our quick and easy glossary of terms below.

Insurance for Private Road

Insurance Glossary of Terms

Here are some of the Insurance Terms you may come across when looking to insure your Private Road:

Act of God

This describes an event that is not the fault of any individual.

Additional Premium

Extra premium that is payable by the insured when adding additional features to a basic policy, or as a result of a policy endorsement (such as additional sums insured).

Aggregate Limit of Indemnity

This is the maximum amount that an insurer will pay for all claims within the period of insurance (normally within 12 months).

All Risks

The broadest type of cove. The risks covered are not normally named, but the exclusions and all unnamed risks are covered automatically.

Annual Premium

The full premium amount for the 12 month policy.


Same as Insurance.

Authorised Insurer

Any Insurance Company that has been authorized under the Insurance Companies Act 1982. Supervised by the FCA


A condition that is applied when the amount insured is under the actual value. For example a Private Road that is insured for £80,000 when it’s actual value is £100,000. In the event of a claim the Private Road is actually 20% underinsured, so the amount paid on a claim would only be 80% of the value claimed for.


An intermediary who provides advice to clients and arranges their insurance on their behalf.

Buildings Insurance

When the structure of a property or building is covered under a policy this is usually referred to as Buildings Insurance

Business Interruption

Same as Consequential Loss.


When a policy is cancelled before the full term of insurance has run its course.


An insurance document that has been issued by the insurers that can be used as evidence of insurance. An example of this would be an Employers Liability Certificate.


A request to the insurance company seeking payment based on the terms of the policy. The claim is reviewed by the insurance company, who then decide whether a claim will be paid out.

Claim Frequency

The number of claims that have been made during the annual period of insurance.


When a number of insurance companies share in the cover of one risk, policy, or section of a policy.

Common Law

Often referred to as the ‘laws of the land’. These are laws that are recognized by the courts.


When an important material fact that relates to the risk is deliberately withheld by the insured. This normally makes the contract ‘null and void’ which will result in no payout in the event of a claim.

Consequential Loss

Insurance that covers any loss of profits and other costs that results in damage or fire as well as other insured events in the policy wording. This is also knows as business interruption.

Employers’ Liability

Insurance that is required by Law by any employer in the UK that covers employees who are insured at work, or as a result of their work.


A change to an insurance policy which then becomes a part of that policy. For example the addition of an Electric Barrier to your Private Roads Insurance Policy.

Engineering Inspection

Normally carried out every 6 months or annually. An engineer comes out to inspect your equipment/machinery to make sure it is in safe working order.

Engineering Insurance

Insurance that provides cover against the failure of machinery.


The amount of money that the insured must pay towards the overall cost of a claim. For example the first £100.


Something that the policy does not cover.

Financial Conduct Authority (FCA)

A financial regulatory body in the United Kingdom that regulates the financial services industry. The purpose is to help protect customers while keeping the industry stable while still promoting healthy competition between financial service providers.

Financial Ombudsman Service

An organization that settles any disagreements between a company and a person/business.

Fire Claim

A claim that arises from any damage caused by explosion or fire.


The idea that the insured is put back to the same financial position to where they were before the loss.


Something that provides financial protection in the form of compensation against a possible eventuality.

Insurance Premium Tax (IPT)

The tax that is imposed on almost all no-life insurance premiums.


The person/business that is covered by the insurance policy.

Insurer – See Insurance Company.


A Person or an organization that doesn’t actually offer their own products but advises and sells products from insurance firms.

Legal Expenses Insurance

Covers the costs of legal proceedings which are defined in the Insurance Policy.

Lloyd’s of London

An insurance market that is organized into syndicates.


See ‘Claim’.

Loss Adjuster

An appointed professional that confirms your claim that is appointed by the insurer. They assess the full extent of your claim and make sure it is covered in your policy. They will then report back to the insurer.

Loss Assessor

An individual who negotiates and evaluates claims and acts on behalf of the insured.

Material Fact

Any facts that influence the decisions made by the insurers on whether to cover something under a policy, or issue a policy. Is also influences the terms and conditions of that policy. All material facts must be stated when you apply for cover.


When a material fact is not stated when applying for an insurance policy.


The actual document that gives details of the contract between the insurer and the insured.


The organization or person that the insurer issues the policy to.


The amount that is to be paid by the insured for their insurance policy.

Property Damage

Any property that may be destroyed or damaged by events listed within the insurance policy

Proposal Form

An application form that is completed for an insurance policy.


The business or person that applies for an insurance policy.

Public Liability

The insurance provided against accidental damage to property or injury to a third party.


The actual part of a policy that contains information on the risk.

Sum Insured

The actual amount for which something is insured. The full amount for which an insurance company will pay in the even of a claim.

Third Party

Somebody that is involved in a claim that is not the insured or the insurer.


When the amount insured is not enough to cover the maximum cost of the loss or damage.


The person that decides whether they will accept a risk. They calculate how much premium will be charged.

This site,, has been created and provided by lead generation experts, Cobalt Online. We are an independent marketing website and are not authorised to give advice. We are not liable for any advice provided by, or obtained through a third party. The information published on this website is for information purposes only.

Care has been taken to ensure that the information is correct, but we neither warrant, represent nor guarantee the contents of information, nor do we accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. We do not give personal advice and the information provided is only to provide an overview of the areas of finance. Anyone considering taking any action may wish to seek advice from an Insurance Broker registered with the Financial Conduct Authority. We cannot be held liable for any losses incurred.