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Event Insurance Jargon Buster

November 21, 2018

At Insure Our Event, we like to make it easy for our customers.

We completely understand that the insurance world can seem a bit confusing. All those terms, conditions and documents; you may as well be reading a foreign language.

So to help you out, we’ve put together this short jargon buster, explain what some of those complicated insurance words and phrases actually mean.


The condition of Average means that if you’re under-insured, the insurer can under-pay a claim by the same percentage. If you insure a static caravan for £20,000, and an investigation finds it to be worth £25,000 when you make a claim, the condition of Average would require the insurer to pay out 80% on the claim.


That’s us – a broker is the insurance expert who helps you get the best cover for the best price. We talk directly to the insurer so you don’t have to.

Cancellation Cover

Cancellation Cover protects you financially if your event has to be cancelled due to factors outside of your control. This could be weather, illness, police intervention…different insurers will have different terms. It’s worth checking your policy and asking your broker.

Cancellation cover will reimburse monies already spent, or sometimes lost revenue.


Cancellation is when you’re insurance is cancelled by the insurer. This could be the result of a number of factors including non-disclosure, falsifying your statement or a change to the risk making risk transfer unprofitable.

Employers Liability

This type of cover protects employers from accident or injury occurring to their staff members. This usually doesn’t include sub-contractors who should have their own insurance.


The amount you as the insured pay before the insurer is liable. If you have a £300 excess, you cover the first £300 of any claim.


The Financial Conduct Authority (FCA) are the regulators for the financial services industry, including insurance. They dictate the playing field, ensuring that insurers, and insurance brokers, are being fair to customers. The Financial Ombudsman Service (FOS) listen to customer complaints and work on their behalf to find a resolution with the insurer or broker.

Inception Date

The start date of your policy.


The maximum amount an insurer will pay on any one claim, or in any one policy period.


Negligence could leave you uninsured. When you take out insurance, you’re expected to take certain measures to reduce risk. Negligence is not showing due care and attention to make sure these measures are in place.

New for Old

New for Old is when the insurer agrees to replace used equipment with brand new should you need to make a claim.


Concealment is the practice of actively hiding information from the insurer that would otherwise affect your policy premium or the insurer’s decision to cover you. An example of this might be failing to inform the insurer of large company debts.

Premium and Additional Premium

The premium is the amount you pay for the insurance. Additional premium is the extra cost associated with changes to the risk once your policy has started.

Public Liability

Public liability insurance covers the cost of legal action and compensation claims that are made against your business.
A third party (member of the public) may take legal action if they are injured or experience damage to their property because of your business, event or service. Public liability insurance will cover the legal expenses and claim that occur with those unfortunate events.

Wear and Tear

Wear and tear is the acceptable damage to property occurring from general use. This isn’t insured for. The value of a claim may also be decided minus wear and tear.

Remember, if you’re reading your policy wording and you see a word or phrase you don’t recognise, get in touch and we’ll talk you through it.

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Every decision we make as a business is made to improve the customer experience. We’ll always put you first because, without you, we don’t have a business.