Contractor Guides

A guide to insurance speak ? All the terms every contractor needs to know

Contractor insurance comes with a lot of related jargon and we understand that it’s easy to become bogged down in…

Author Photo by Kingsbridge

Contractor insurance comes with a lot of related jargon and we understand that it’s easy to become bogged down in what all of these industry specific terms actually mean.

Not to fear! You don’t have to swallow a dictionary in order to understand your contractor insurance policy. We’ve collected some of the key terms you’re likely to come across when searching for insurance cover to make the terrain a bit easier to navigate, and to save you some valuable time!


An unforeseen or unexpected event that results in loss or injury to the insured party.

Aggregate cover:

In respect of Professional Liability Insurance, aggregate cover is the limit of cover that applies for all claims made during the period of the policy.


An agent is a person who represents an insurance company (or, in the case of an independent agent, many different companies) and who sells insurance policies on behalf of the company.


A broker is an independent agent or organisation that negotiates and sources insurance on behalf of the insured party.


A claim is an official request on behalf of the insured party for payment based on the terms of their insurance policy.


Insurance coverage is the amount of risk or liability that is covered under the terms of an insurance policy. This differs for each type of insurance policy.

Directors’ and Officers’ Liability Insurance:

Directors’ and Officers’ Liability Insurance provides financial protection to the director of a company, including contractors who work in single person Limited Companies. The cover provided protects you in the event of criminal or regulatory investigations brought against you in your capacity as Director.

Each and every claim cover:

Again, in respect of Professional Indemnity Insurance, this type of cover provides insurance up to the full limit of indemnity for each separate claim made during the course of the policy, regardless of how many claims you make.

Employers’ Liability Insurance:

Employers’ Liability provides protection against claims made by employees that suffer injury or disease during the course of their work for you and for which you are deemed responsible. Employers’ liability insurance is a compulsory insurance for all employers with limited exceptions in law.


An employee is generally considered to be anyone that is personally contracted to do work for your company. This extends to include any work sub-contracted out by you or engaging a self-employed individual who works for you under your control.


The excess amount on a policy is the first part of the claim amount that you, the insured party, are liable to pay.


For insurance policies that cover offshore rig work, offshore means the policy will cover the insured from the time they leave land and are transported to a rig or offshore platform right up until the insured is transported back to land upon their return from time spent working on a rig or platform.

Permanent Total Disablement:

In respect of Disablement Cover, Permanent Total Disablement means that, due to sickness or injury, the insured person is unable to undertake their usual job for a period of 12 months and after that period is highly unlikely to significantly improve to a level of being able to work again in their usual occupation.

Personal Accident Cover:

Personal Accident cover is a type of insurance that pays a specified sum over a specified period of time in the event of the insured part suffering an injury during the course of their work. Kingsbridge’s Personal Accident cover also pays out a lump sum in the event permanent disability or death in the event of an occupational accident.


The premium is the amount of money that the insured pays at specified intervals (monthly, quarterly, annually) to their insurer for the upkeep of their cover.

Professional Indemnity Insurance:

Professional Indemnity Insurance, often referred to as Professional Liability Insurance or PI Insurance, covers your legal costs and expenses if you are alleged to have provided inadequate advice, services or designs that cause financial loss on the part of your client.

Public Liability Insurance:

Public Liability Insurance provides cover in the event of any accidental injury to third parties or accidental damage to third party property during the course of normal business activity.

Temporary Total Disablement:

Temporary Total Disablement is when the insured cannot undertake their usual job due to an accident in the short term, but is expected to make a full recovery that will allow them to re-enter their occupation fully.

These are some of the most common terms you are likely to come across when searching for comprehensive contractor insurance cover. Hopefully this handy guide will leave you a little more knowledgeable when you are searching for the right cover for you. If you want an insight into more insurance terms, be sure to visit our glossary page.

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