Glossary

Liability Please use the alphabetical links below to quickly jump to a glossary entry. A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z

C

Car Park Liability
The policy extends to include loss of or damage to visitors and employees motor vehicles and their contents and accessories whilst they are in a car park for which the insured is responsible.

Cloakroom Liability
The policy extends to include loss of or damage to visitors and employees personal effects whilst deposited for safekeeping in any cloakroom.

Compensation for Court Attendance
In the event of any director or employee of the Insured attending court as a witness (at the request of the Insurer) in connection with a claim for which cover is provided by the policy, compensation will be provided to the Insured at a daily rate for each director/ employee for each day attendance is required.

Consumer Protection Act Legal Defence Costs
The policy indemnifies the Insured for legal costs and expenses (incurred with the Insurer’s written consent), in connection with the defence of a prosecution under Part II of the Consumer Protection Act 1987. At the Insured’s request, cover can also usually be extended to indemnify individual directors/ employees. The purpose of the Consumer Protection Act is to impose strict liability on the producers of goods for any injury or damage caused as the result of a defect in those goods.

Contingent Motor Liability
The policy covers the Insured’s legal liability arising out of the use of any motor vehicle belonging to an employee (or other Third Party), for the purpose of the Insured’s business. Cover is not provided for damage to the vehicle itself or any liability whilst the vehicle is being driven by the Insured.

Contractual Liability (Restricted)
Provides cover for liability assumed under contract, but only to the extent that liability would have attached under Common Law/Tort, had the contract no existed.

Contractual Liability (Full)
This clause provides cover, subject to certain exceptions, for all liabilities which attach by virtue of a contract or agreement regardless of whether such liability would have attached in the absence of such an agreement.

Insurers will usually wish to see individual contracts for agreement and will exclude items such as fines and penalties.

Costs in Addition
The Limit of Indemnity provided by this Insurance applies only in respect of the compensation element. Any costs or expenses incurred or awarded shall be payable by Insurers in addition to the limit stated.

Costs Inclusive
The policy limit of indemnity shall apply to both the compensation element and costs and expenses together. Therefore, costs and expenses will erode the limit of indemnity.

Cross Liabilities/ Member to Member Liability
Where more than one party is indemnified under the policy, the cover provided by the policy applies separately to each party.

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D

Data Protection Act Indemnity
The policy indemnifies the Insured for legal costs in defining an action brought against them under the Data Protection Act 1984. The Act gives individuals (data subjects) resource to the law in the event of damage/ any associated distress caused by unauthorised disclosure, loss or retention of inaccurate information by organisations or businesses (data users). The Act defines data as any information recorded in a form in which it can be processed by equipment operated automatically.

Defective Premises Act 1972
The Act imposes rights of recovery against a vendor of a property for buildings or works carried out on the land prior to sale. This clause extends the Public Liability Section to provide indemnity for negligent acts. The cost of rectifying defects in premises are not covered.

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F

Food Safety Act 1990
This extension provides indemnity to the insured for legal costs and expenses (incurred with Insurers consent) in connection with the defence of a prosecution under the Food Safety Act 1990.

H

Health and Safety at Work Act Legal Defence Costs
The policy indemnifies the Insured for Legal costs and expenses (incurred with the Insurer’s written consent) in connection with the defence of a prosecution under the Health & Safety at work 1974. At the Insured’s request cover can usually also be extended to indemnify individual directors/ employees.

I

Indemnity to Directors & Others
At the request of the Insured, Insurers will indemnify:

a) Any officers or members of catering, sports, social and welfare organisations and fire, first aid or ambulance services.

b) Any Director, Partner or Employee as long as the Insured would have been entitled to indemnity had the claim been made directly against them.

Indemnity to Principals
Where any contract or agreement the Insured has entered into with a “principal” so requires, the benefits of the policy apply jointly to the Insured and the principal. This is because a principal will normally be vicariously liable for the acts/ omissions of its agent. Vicarious liability is the liability of one person for the acts or omissions of another. In most cases the plaintiff is free to sue both parties. If the plaintiff sues the principal for an act/ omission perpetrated by the Insured, the policy will respond.

There are 3 main categories of vicarious liability, all based upon the relationship between the parties:-

- Employer/ Employee

- Principal/ Agent

- Principal/ Independent Contractor

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L

Leased & Rented Premises
The policy extends to include damage to premises that are leased or rented by the Insured, caused by their negligence.

Legal Representation Costs
Cover is extended to include costs of legal representation incurred with Insurers written consent at

• any coroners inquest or inquiry,
• proceedings in any court arising out of an alleged breach of statutory duty resulting in injury, or loss of or damage to property,

which may be subject to indemnity under the policy.

M

Motor Vehicles
Whilst third party liabilities in respect of motor vehicles fall under the terms of the Road Traffic Act and are included within the motor policies. However, certain areas excluded by motor policies are included under the Public Liability Section:

i) Use of plant as a tool of trade at the Insured’s premises or any site at which the Insured are working.

ii) Loading and unloading of vehicles.

iii) Damage to any building, bridge, weighbridge or road caused by vibration or weight of the vehicle.

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P

Personal Liability Overseas
Cover extends to include the Insured, Directors, Partners, Employees or their spouses or children in respect of their personal liability whilst on a business trip abroad.

Pollution
The policy excludes pollution or contamination unless it can be proved that such pollution or contamination was caused by a sudden, accidental and identifiable event.

S

Step Down / Exhaustion Clause

U

Unauthorised Movement
The cover provided by this extension is for legal liability incurred whilst moving vehicles that are obstructing the Insured’s premises. Cover in respect of Road Traffic Act Liabilities and damage to the obstructing vehicle are excluded. The vehicle must only be driven by a person competent to drive and using the correct ignition key.

Unsatisfied Court Judgements
Where an employee has obtained a judgement against a company or individual operating from premises within Great Britain, for injury arising out of his employment with the Insured and the judgement remains unsatisfied for a period of 6 months, then Insurers, at the request of the Insured ,will pay to the employee the amount of such damages.

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