Public Liability Insurance Glossary

When considering the purchase of public liability cover and an overarching business insurance premium for your company, the terms and acronyms used by business insurers and industry professionals can be daunting, so we've put together a useful glossary to help you with some of the most commonly used terms.

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Common terms & acronyms

Business Interruption. A policy feature which will protect the revenue of your company if your trade is interrupted due to an eventuality occurring which you are also insured for.

Contractor. An individual that enters into a contract with a business in order to provide services or goods. It is important to note that contractors should be viewed distinctly from employees.

Employers' liability insurance. Insurance cover that will pay out in the event that one of your employees suffers an accident during the course of their work for you. It is important to note that employers' liability insurance is a legal requirement for companies employing 1 or more people in their employment. You will need to keep records of your cover for every year that your business has been in operation in case an employee files a claim several years later which dates back to a previous year.

Endorsement. Usually a written document which you will find attached to a policy to modify the coverage included in your agreement. This can add coverage for eventualities which would not be included in a standard policy.

Exclusion. Usually found in the written terms and conditions of the policy, an exclusion eliminates coverage for some types of damage, acts, property types, etc. It's important to read through these thoroughly before committing to the purchase of a public liability premium.

Limited company. This is a legal structure that allows the company to be considered as a legal entity separately from its directors. This also means that the directors' liability is then limited only to the initial investment they made.

Product liability insurance. A form of Insurance cover that will pay out should a faulty product supplied by your company cause injury to a customer or damage to their product.

Professional indemnity insurance. If a client should suffer financial loss due to poor advice or negligence on your part, professional indemnity insurance will cover the cost of an ensuing claim and compensation. Visit our professional indemnity cover page to learn more.

Public liability insurance. A key part of any comprehensive business insurance policy, public liability cover will pay out in the event that a member of the public suffers an injury – or damage to their property – whilst at your business premises.

Self employment. As a business owner you are unlikely to work under an employer, and as a self employed individual you will need to pay your taxes through the submission of self assessment tax forms instead of through the standard PAYE (pay as you earn) scheme.

SME. If your business employs less than 250 people and has an annual turnover of below €50million (or a cash balance of less than €43million) you will be considered a small or medium sized enterprise (SME) by the European Commission.

Sole trader. The name given to a business that is owned in its entirety by one individual, thus having no separate legal status.

Startup. If your business is in the first stages of development you will be classed as a startup company. As a startup it is likely that your business will still be developing its services and products whilst also investigating the markets you'll be trading in.

Subcontracting. It is common for businesses to subcontract to another company in order to complete work in an area that they lack the resources or skills to address.

Turnover. Another name for the revenue your company generates, usually recorded for a specific period such as the financial year.

Underwriter. This is the individual or company who analyses the risks and uses this to determine the cost of your premium and level of cover you will receive.

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