Sometimes called 'each and every claim'. A policy in which the level of cover you choose applies to each claim you make during one policy period. Legal costs of a claim are paid in addition to any damages and to the same level of cover. The opposite of aggregate cover.

A policy in which the level of cover you choose applies to the sum of all accumulated claims you make during one policy period. Legal costs of a claim are included in the level of cover.

Also known as jurisdiction. For you to be covered by the policy, a claim against you must be brought in the courts of - or be subject to the laws of - a specific country or region. This is normally the EU, worldwide excluding USA and Canada or just worldwide. Whichever applies to you will be noted on your schedule.

An independent person or organisation whose business it is to find the most appropriate cover for any given customer's risk profile. Brokers usually have access to a selected range of specialist insurers and policy types.

A policy that doesn't expire or require renewal and which remains in place for as long as payment is maintained. Unless otherwise amended, the premium stays the same throughout the policy period. The opposite of an annual policy which usually expires after 12 months.

Also known as legal costs. The costs of defending your claim in a court of law. These will be included in the overall level of cover or paid in addition depending on whether you have an any one claim or an aggregate policy.

This document is included with every policy that has continuous cover. It's sent at the start of the policy and re-sent at each anniversary. It contains the information you provided about your business and explains what you need to do if any of the noted information changes.

A change to your policy (and also the name of the document sent to you following a change).

The amount you pay towards each claim. In the case of professional indemnity insurance, it's usual for the excess to be paid only in the event that the insurer has to pay damages or compensation.

A clause in the policy which states that a specific business activity, operation or circumstance is not covered by your insurance.

For a claim to be covered by the policy, your business must operate within certain countries. These are usually defined as UK, EU or worldwide and whichever applies to you will be noted on your schedule.

The start date of your policy. Claims can only be made after this date.

This takes the form of a clause added to your policy. It means that the policy's cover is extended to your client or other third party (the 'principal') if they're sued as a result of your negligence. The insurer is bound to indemnify them directly.

The organisation assessing and accepting the merits of each risk It's the insurer that pays out in the event of a claim.

A six per cent tax charged on all insurance premiums.

See applicable courts.

Sometimes called 'limit of indemnity'. The maximum sum that your insurer will pay in the event of any one claim, or the maximum sum paid for all accumulated claims.

See level of cover.

Your insurance. This is the legally binding document detailing and confirming your cover and it consists of the schedule and the policy wording. You should check both carefully when you receive your documents.

The length of time you're covered. Can be for twelve months or continuously, depending on the insurer and your business activities.

The date from which your work will be covered, regardless of the inception date of the policy. Cover is effectively extended backwards to a specified date, before the start date of the policy. This ensures that you're covered for work carried out in the past.

Insurance for a business which has stopped trading but wishes to maintain cover for past work. Run-off cover usually lasts for six years but other periods of time can be specified.

This document outlines the details of your business, the cover you've purchased, any applicable exclusions, the policy period and the premium you're paying.

Forms the basis of the contract between you and the insurer. Statements of fact are compiled from the information provided by you when applying for a policy. Cover is based on your answers to these questions.

The individual employed by the insurer to calculate the premium to be charged, apply clauses or exclusions and confirm the overall terms and conditions of coverage.

The policy wording is effectively the contract between you and the insurer. It explains exactly what you are and are not covered for.