Insurance terms, without the broker fog.
A practical glossary for founders, operators and finance teams who need to understand coverage, limits, exclusions, endorsements, named parties and certificates before a contract or claim puts them under pressure.
Key terms to know before you buy, renew or claim.
Coverage
The events, losses or legal liabilities a policy is designed to respond to, subject to the wording, exclusions, limits and conditions.
Limit of liability
The maximum amount an insurer may pay for a claim or across the policy period. Some policies also contain smaller sublimits for specific events.
Excess / deductible
The amount the insured contributes to a claim before the insurer pays. Different claim types can have different excesses.
Exclusion
A carve-out that removes or restricts cover. Exclusions are often where the most important claim-time differences sit.
Policy schedule
The document that lists the insured entity, policy period, limits, excesses, endorsements and other key variables attached to the policy wording.
Endorsement
A policy amendment that adds, removes or changes cover. Endorsements can be helpful, but can also narrow cover if not reviewed properly.
Named insured
The person or entity listed as insured on the policy. Getting this wrong can create serious issues when entities, subsidiaries or trading names are involved.
Interested party
A third party noted on a policy or certificate, often because a contract requires it. This does not always give that party full insured rights.
Certificate of currency
A point-in-time evidence document showing certain policy details. It is not the policy wording and does not prove every contract requirement is satisfied.
Retroactive date
A date used in many claims-made policies. Work or events before this date may not be covered, even if the claim is made during the policy period.
Claims-made policy
A policy that generally responds based on when a claim is first made and notified, not simply when the underlying work or event occurred.
Run-off cover
Cover that protects against future claims arising from past work after a business is sold, closed or stops providing a service.
Aggregate limit
The total amount available for all claims in a policy period. Once exhausted, the policy may not respond to further claims.
Sub-limit
A smaller limit inside the overall policy limit, commonly used for cyber crime, investigation costs, mitigation costs or specific extensions.
Duty of disclosure
The obligation to tell the insurer information relevant to underwriting the risk. Non-disclosure can affect claim outcomes.
Material change
A significant change to the business, activity, revenue, territory, claims history or risk profile that may need to be disclosed to insurers.
The details that usually matter in real contracts.
Questions to ask before you send the certificate.
Certificates, endorsements and named parties can look simple, but they often decide whether a policy satisfies a customer, investor, lender or principal.
How brokers help before, during and after a claim.
The value of a broker is not just finding a quote. It is understanding the business, structuring the program, explaining trade-offs and advocating when the policy is tested.
What does an insurance broker actually do?+
A broker helps understand the risk, design the insurance program, approach suitable markets, explain terms, negotiate wording and support the client through renewals, certificates, contract reviews and claims.
Why use a broker instead of going direct?+
A direct quote can be useful for simple risks, but it may not compare wording, exclusions, sublimits or market appetite. A broker can help decide what cover is appropriate, which markets understand the risk and where the policy could fail at claim time.
What are the advantages of a specialist broker?+
Specialist brokers understand the language, contracts, customer expectations and claim patterns in a sector. For startups and scaleups, that can mean better underwriting conversations, fewer irrelevant questions and more practical cover design.
How do brokers get paid?+
Brokers may be paid commission by insurers, agreed fees by clients, or a combination. The details should be disclosed in the broker's Financial Services Guide, quotes and advice documents.
Does the broker work for me or the insurer?+
A broker is engaged to help you arrange and manage insurance, although specific roles can vary depending on the product, authority and documents involved. Ask the broker to explain who they act for, how they are paid and any conflicts that may apply.
How does a broker help during a claim?+
A broker helps notify the insurer, gather information, explain the policy process, coordinate with claims handlers and advocate where wording, facts or quantum need to be properly understood.
What does claims advocacy mean?+
Claims advocacy means helping present the claim clearly, pushing for a fair reading of the policy, challenging avoidable delays and making sure the insurer has the information needed to assess the matter properly.
Why does knowing your broker well matter?+
The better your broker understands the business, contracts, customers, revenue model, entities and risk appetite, the easier it is to give underwriters a clear risk story and respond quickly when a claim or contract issue appears.
Can a broker get better cover or pricing?+
Sometimes. A broker cannot guarantee a better result, but good submissions, market relationships, clean data and sector knowledge can improve the chances of stronger terms, fewer exclusions and more relevant options.
What information should I share with my broker?+
Share material changes early: new products, overseas expansion, large contracts, claims, acquisitions, funding rounds, new entities, revenue changes, security incidents and anything a reasonable insurer would want to know.
What happens at renewal?+
Renewal should be a program review, not just a price check. A broker should revisit limits, exclusions, claims history, contracts, new activities, market changes and whether the structure still matches the business.
When should I contact a broker about a claim?+
As soon as something happens that could become a claim. Early notification can preserve rights under the policy and helps the broker guide evidence, communication and insurer involvement before positions harden.
What is specialised cover?+
Specialised cover is insurance designed for risks that do not fit standard package policies, such as cyber, professional indemnity, management liability, IP, trade credit, warranty and indemnity, or complex global programs.
Can a broker help with customer contract insurance clauses?+
Yes. A broker can compare contract insurance requirements against current policies, identify gaps, arrange certificates of currency and explain where a requested clause may be unrealistic or broader than the actual risk.
Need a clause, COC or endorsement reviewed?
Send us the contract wording or current policy schedule. We can help explain what it means and where the risk sits.
This education centre provides general information only. It is not financial advice and does not replace advice based on your policy wording and business.