Church insurance terminology

This page provides a glossary of commonly used insurance terms and phrases used to assist you in understanding your church insurance cover.

Specific definitions relating to your policy terms can be found in your policy wording.

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Please submit a term to us or call the church department on 01274 700 700

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

Accidental bodily injury

Bodily injury or injuries caused directly by accidental means or by unavoidable exposure to the natural elements which within 104 weeks from the date of the accident or exposure results in the death or disablement of the insured person.

As defined in section 4 loss of income and section 6 personal accident in our church choice policy

Accidental damage

Damage caused suddenly, by external means, that isn't expected and isn't deliberate.

Act of terrorism

Act of persons acting on behalf of or in connection with any organisation which carries out activities directed towards the overthrowing or influencing by force or violence of Her Majesty’s Government in the United Kingdom or any other Government de jure or de facto.

As defined under exclusion which apply to the whole policy in our church choice policy

All-risks

‘All-risks’ is extended cover for certain items to cover against loss, damage or theft anywhere in the world. These items must be noted on your schedule.

All risks cover can be found in section 2 of church choice and is called ‘extended cover for special items’.

Average

Where the sum insured for property is less than the cost of replacing the whole of that insured property as new, a condition of average will be applied. This means that the amount an insurer will pay in the event a claim occurring will be reduced in proportion to the amount of underinsurance.

Broker

An insurance broker or intermediary is a professional firm regulated by the Financial Conduct Authority (FCA) whose primary purpose is to help customers find suitable cost effective insurance protection. Brokers can give advice on numerous issues including support in the event of a claim. Brokers are the agent of the client; they represent the client's interests.

Building valuation

Valuation undertaken by a surveyor to assess the rebuilding costs for your buildings.

Buildings

The buildings at the premises built of brick, stone or concrete and roofed with slates, tiles, concrete, metal or slabs composed of incombustible material unless otherwise advised to us. Buildings includes its permanent fixtures and fittings, fixed heating and lighting installations, windows (including coloured, painted, engraved or stained glass windows), car parks, solar panels, wind turbines, satellite television receiving equipment, television or radio aerials, aerial fittings or masts, external fuel storage tanks, small outbuildings and lychgates irrespective of their construction, boundary walls, fences, gates, notice boards, paths, drives and paved areas and, so far as they are regarded as immovable, integral fittings and fixtures of the building, fonts, pulpits, panelling, screens and pews all belonging to you or for which you have accepted legal responsibility.

As defined in our church choice policy.

Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)

The Federal Financial Supervisory Authority (German: Bundesanstalt für Finanzdienstleistungsaufsicht) also known by its abbreviation BaFin is the financial regulatory authority for Germany. It is an independent federal institution which falls under the supervision of the Federal Ministry of Finance (Germany).

International Insurance Company of Hannover SE UK Branch, the underwriter of all Congregational policies is authorised by the Bundesanstalt für Finanzdienstleistungsaufsicht and subject to limited regulation by the Financial Conduct Authority.

Business interruption

Cover for the difference between the income the church would have received from normal activities and the income the business actually received during the 24 months following an incident of insured damage to the church. This is sometimes known as loss of income.

Cancellation

Cancellation is the termination of a policy before it's due to expire.

For Congregational policies you may cancel your policy within 14 days from the day of purchase or renewal of the contract or the day on which you receive your policy or renewal documentation, whichever is later.

If you wish to cancel and the insurance cover has not yet commenced, you will be entitled to a full refund of the premium paid. Alternatively, if you wish to cancel and the insurance cover has already commenced, you will be entitled to a refund of the premium paid, less a proportionate deduction for the time we have provided cover.

Company House Reference Number

This is the employer’s reference number provided, where relevant, by the registrar of companies.

Compulsory excess

Most insurance policies include a policy excess. This is the first part of any claim that a policyholder has to pay themselves.

A compulsory excess can be applied in addition to the standard excess this is set by the insurer and will be shown in your schedule.

Condition

Conditions are found in your policy wording these are fundamental matters which affect the way the whole policy operates.

Contents

Furniture, furnishings, musical instruments, organs, fixed and unfixed audio visual equipment, consumable goods and all other contents, including movable fonts, pulpits, panelling, screens and pews, in the buildings at the premises and all belonging to you or for which you have accepted legal responsibility.

Contents does not include:
     i money, credit or debit cards, other negotiable instruments;
     ii motor vehicles licensed for road use or their accessories, trailers, caravans, watercraft or aircraft;
     iii wearing apparel and personal effects other than as described in extension 3 of section 1a – property damage;
     iv living creatures, trees, shrubs, plants or other vegetation;
     v any items more specifically insured in this or any other policy.

As defined in our church choice policy

Cooling-off period

The time you have to change your mind when buying insurance or other financial products or services. All Congregational policies have a 14 day cooling-off period.

DAS

DAS Legal Expenses Insurance Company Limited are the market leader for legal expenses cover. DAS are the underwriters of section 7 legal protection in our church choice policy. DAS also provide the helpline services.

Definitions

Definitions appear in our policy wordings. These explain the specific meaning which, whenever it appears in the policy will have the same meaning. Where a word with a specific meaning is used in the policy wording it will be printed in bold type.

Denominations

A subgroup within a religion that has a common name, tradition, and identity.

The term is often used for several Christian denominations including Eastern Orthodoxy, Catholicism, and the many sorts of Protestantism like Baptist, Methodist, Episcopalian and Pentecostal.

Duty of fair representation

When an application is made for church insurance it is the responsibility of the applicant to make a fair representation of the risks to the insurer when applying and renewing insurance cover.

For Congregational polices it is important that you advise your broker, intermediary or the church department of any changes which occur during the period of insurance which may alter information previously provided. If you are in doubt as to whether you need to disclose information to us, then this should be declared.

This means you may need to make enquiries with all church officials and advisers to ensure that you have declared all necessary information.

Employee

An employee is:
     i Persons under a contract of service or apprenticeship with you.
     ii Persons under a contract of service or apprenticeship with some other employer and who are hired to or borrowed by you.
     iii Labour masters and persons supplied by them.
     iv Persons engaged by labour only sub-contractors.
     v Self-employed persons performing work of a kind ordinarily performed under a contract of service or apprenticeship with you; while working for you in connection with your church business or its activities.

As defined in section 5 liabilities in our church choice policy

Employers’ liability

Employers are required by law to insure against their legal liability for injury or disease to their employees arising out of their employment.

The cover indemnifies against sums for which the church becomes legally liable to pay as damages.

Endorsement

An insurance endorsement is an added provision to a policy that changes the policy’s terms or conditions. Common types of endorsements add coverage for special events, name additional parties to the policy or restrict coverage based on specific criteria.

Endorsements are a legally binding change to a policy and should be kept with the original policy documents

Excess

Most insurance policies include a policy excess. This is the first part of any claim that a policyholder has to pay themselves. There may also be a voluntary excess and/or a compulsory excess in addition to the standard excess.

Exclusion

A provision in a policy that excludes the insurer's liability in certain circumstances or for specified types of loss.

Exclusions

Description of events, circumstances or occurrences which are not covered under any part of the policy.

Fair representation

When an application is made for church insurance it is the responsibility of the applicant to make a fair representation of the risks to the insurer when applying and renewing insurance cover.

For Congregational polices it is important that you advise your broker, intermediary or the church department of any changes which occur during the period of insurance which may alter information previously provided. If you are in doubt as to whether you need to disclose information to us, then this should be declared.

This means you may need to make enquiries with all church officials and advisers to ensure that you have declared all necessary information.

Financial Conduct Authority (FCA)

The Financial Conduct Authority (FCA) regulates the financial services industry in the UK. Its role includes protecting consumers, keeping the industry stable, and promoting healthy competition between financial service providers.

Financial Ombudsman Service (FOS)

An independent service established to oversee the interests of policyholders whose complaints remain unresolved. The service is available to policyholders holding personal cover with insurers who participate in the scheme. The decision of the ombudsman is binding on the insurer. More information can be found by visiting www.financial-ombudsman.org.uk

Gradually operating cause

Damage caused by rot or water leakage occurring over a period of time, for example, would fall under the definition of gradual operating cause and would generally be excluded from a policy.

Hazardous activities

Hazardous activities include:
Aqualung diving, water-skiing, parascending, flying (except as a fare-paying passenger), hang-gliding, parachuting, hunting on horseback, polo, show jumping, steeple-chasing, racing (except on foot), riding motor cycles or motor scooters, martial arts, boxing, wrestling, winter sports (other than curling), hurling, association football, rugby union, rugby league, American football, mountaineering, cliff or rock climbing, abseiling, bungee-jumping, canyoning, potholing, boating or yachting outside United Kingdom territorial waters, boating in vessels capable of speeds in excess of 15 knots, professional or semi-professional sport, service in the armed forces, work involving the use of ladders or scaffolding more than 6 metres from ground or floor level, work on the exterior of a building more than 6 metres from ground level, use of wood working machinery, tree felling, lopping, pollarding or topping.

Benefits under section 6 personal accident will not be paid if any injury occurs to an insured person taking part in a hazardous activity. It is impossible to list every activity or sport which may be generally considered to be hazardous. We may refuse to pay benefit if an injury occurred to an insured person “wilfully exposing themselves to needless peril”.

Helpline

The helpline services provide customers with easy access to advice and guidance to deal with all kinds of events and emergencies occurring within the United Kingdom.

✆ 0800 1388 114 - Emergency assistance, eurolaw legal advice service, tax advice service
✆ 0800 1388 115 - Counselling helpline
✆ 0800 1388 116 - Glass replacement service

For more information visit the helplines page

HMRC Employer Reference Number

This is the reference number for Her Majesty’s Revenue and Customs for every employer and is required for our records.

Income

The money paid to you from all sources including but not restricted to church collections, donations, rent and fundraising activities.

As defined in section 4 loss of income in our church choice policy

Indemnity

A principle whereby the insurer seeks to place the insured in the same position after a loss as they were immediately prior to the loss occurring.

Indemnity period

An agreed time limit for which a policy will provide the insured with financial compensation at an agreed level. This is referred to under loss of income and liability cover.

Index-linking

Index-linking ensures that the sum you insure your building or property for is updated every year to reflect economic variations - giving you the reassurance of knowing your insurance value is going up in line with inflation.

Insurance Premium Tax (IPT)

Insurance Premium Tax (IPT) is a tax on general insurance premiums.

In the summer budget, announced 8 July 2015, the Chancellor of the Exchequer confirmed an increase in IPT. This was effective from 1 November 2015. This increase means the standard rate moved from 6% to 9.5%.

From the 1 October 2016 this will increase to 10%.

Insured event

A specific event that is covered under a policy of insurance against which claims may be paid. This is sometimes known as an insured peril.

Insured peril

A specific event that is covered under a policy of insurance against which claims may be paid. This is sometimes known as an insured event.

Insured person

Members, voluntary workers and employees (which term shall include your minister) of the church while acting under your authority and engaged in your church business or activities.

As defined in section 6 personal accident in our church choice policy

Intermediary

An insurance intermediary or broker is a professional firm regulated by the Financial Conduct Authority (FCA) whose prime purpose is to help customers find suitable cost effective insurance protection. Brokers can give advice on numerous issues including support in the event of a claim. Brokers are the agent of the client; they represent the client's interests.

Legal expenses

Referred to as legal protection in our church choice policy

Underwritten by DAS Legal Expenses Insurance Company Ltd, legal protection cover provides the church, ministers, employees and volunteers with legal fees in connection with matters arising from church business and authorised activities. It provides help with legal defence, employment disputes, employment compensation awards, and both property and tax protection.

Legal protection cover

Underwritten by DAS Legal Expenses Insurance Company Ltd, legal protection cover provides the church, ministers, employees and volunteers with legal fees in connection with matters arising from church business and authorised activities. It provides help with legal defence, employment disputes, employment compensation awards, and both property and tax protection.

Liabilities

Liability cover indemnifies against sums which you become legally liable to pay as damages.

Church choice provides the follow liability cover:

Employers’ liability - Compulsory insurance required by employers which insures against legal liability for injury or disease to employees arising out of their employment.

Public liability - Provides indemnity against damages, costs and expenses for which the church is legally liable. Legal actions could arise following injury to members of the public or damage to their property arising from the business and activities of the church.

Products liability - Provides indemnity if held responsible for injury, illness, loss or damage caused by defective goods that you have produced, repaired or sold

Cover also includes:

Publishers’ indemnity - Damages, costs and expenses for libel, slander, infringement of trademark etc. arising from contents in your church magazine or other official publications

Trustees’ and officers’ indemnity - Damages, costs and expenses for trustees and officers of the church arising from ‘wrongful acts’ committed by them in their capacity as a trustee or officer of the church

Catering facilities - Cover is extended to include your activities in respect of catering or retail sales at the church

Limit

The insurer's maximum limit of liability under an insurance policy, which may be expressed 'per accident', 'per event', 'per occurrence', 'per annum'.

Long-term undertaking

A long-term undertaking is when a church has agreed to insure with a provider for a set number of years in return for a discount.

Loss adjuster

A loss adjuster is an independent claims specialist who investigates whether your claims is covered by the policy, assess the loss or damage and manages the claim on our behalf.

Loss of income

The difference between the income the church would have received from normal activities and the income the church actually received during the 24 months following an incident of insured damage to the church. This is sometimes known as business interruption.

Mid-term adjustment (MTA)

Changes made to an insurance policy during the period of insurance.

No claims bonus

Insurers may offer a discount if you have had one or more years without making a claim.

Non-ferrous metals

Non-ferrous metals do not contain iron and are usually more resistant to corrosion than ferrous metals.

Some examples of non-ferrous metals are aluminium & aluminium alloys, copper, brass, lead, zinc or stainless steel

Period of insurance

The period stated in your schedule for which we agree to provide the insurance described in the policy in return for your payment of, or agreement to pay, the premium.

As defined in our church choice policy.

Personal accident

Cover for your members, voluntary workers, employees and ministers if they suffer accidental bodily injury while engaged in church business or authorised activities, including temporary visits overseas by your minister whilst on church business.

Premises

The premises as shown as risk address in your schedule.

As defined in our church choice policy.

Premium

The amount you pay for your policy.

Products liability

Provides indemnity if held responsible for injury, illness, loss or damage caused by defective goods that you have produced, repaired or sold

Public liability

Provides indemnity against damages, costs and expenses for which the church is legally liable. Legal actions could arise following injury to members of the public or damage to their property arising from the business and activities of the church

Publishers indemnity

Damages, costs and expenses for libel, slander, infringement of trademark etc. arising from contents in your church magazine or other official publications

Renewal

Approximately 4 weeks before a policy expires, renewal documents are sent to your broker (if you have one) or directly to you. The documents will give details of how to continue your policy and how much your annual premium will be.

Renewal date

The date that your policy expires unless you renew your policy and pay the appropriate premium to continue with the cover

Schedule

The document that provides details of the insured, period of insurance, sums insured, extent of cover and any additional terms and conditions such as excesses and endorsements.

Special condition

Special conditions appear in the church choice and business choice policies.

Claims will not be paid if the insured fails to comply with any special condition stated in the policy if such failure causes damage or increases the likelihood of damage.

Specified item

Insured property which is specifically described on the insurance schedule. Cover is provided for this item away from the premises.

Start date

The date that your policy commences which is shown in your schedule.

Sum insured

Sum insured is the amount of cover required for your property.

The buildings sum insured should represent the full cost of rebuilding including architects’, surveyors’, consulting engineers’ and legal fees, the costs of debris removal and of meeting Public Authority requirements, and an allowance for VAT if appropriate

The contents sum insured must cover the cost to replace property this includes furniture, furnishings, consumable goods, and other movable contents including fonts, pulpits, panelling, screens, pews and all other content items

Territorial limits

Includes England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man.

As defined in our church choice policy

Trustees’ and officers’ indemnity

Damages, costs and expenses for trustees and officers of the church arising from ‘wrongful acts’ committed by them in their capacity as a trustee or officer of the church.

Underinsurance

Where the sum insured for property is less than the cost of replacing the whole of that insured property as new.

Unoccupied

Vacant, untenanted, unfurnished and/or not in use for church activities or any other purpose.

Voluntary excess

Most insurance policies include a policy excess. This is the first part of any claim that a policyholder has to pay themselves.

A voluntary excess is when you choose to have a higher excess for a discount off the premium. If you have a voluntary excess this will be shown in your schedule.

Voluntary workers

Volunteer workers acting under your authority whilst engaged in your church business or in authorised activities in connection with your church.

As defined in our church choice policy

Working day

9am – 5pm Monday to Friday excluding bank holidays

Wrongful act

Any actual or alleged breach of trust, breach of duty, neglect, error, mis-statement, misleading statement, libel, slander, breach of contract, omission, breach of warranty of authority or other act wrongfully committed or attempted by such trustees or officers of your church or any matter claimed against them solely by reason of their acting as a trustee or officer.

As defined in section 5 liabilities accident in our church choice policy

Can’t find what you are looking for?

Please submit a term to us or call the church department on 01274 700 700