Cancellation

The termination of Insurance coverage during the Policy period. Flat cancellation is the cancellation of a Policy as of its effective date, without any Premium charge.

CDM Regulations

Construction Design and Management Regulations
See - www.hse.gov.uk

Certificate of Insurance

Evidence, in the form of a certificate issued in the name of the Insurer, that an insurance contract exists.

Change in Circumstance

You should notify insurers if a change occurs which may alter the risk profile of your business, for example the death of a senior controller, the acquisition of a new business or a change in the type of work the you undertake.

Circumstance

An event that you are aware off, which could bring about a future claim on your policy. It does not necessarily mean that you have had a complaint from a client or customer, it may be that you know an event or incident has occurred which could lead to a complaint.

Civil Liability Policy Wording

Indemnifies the policyholder against loss/circumstances due to any Civil Liability in carrying out the policyholders business (subject to policy exclusions). This is the widest form of cover and is required by some professional bodies for their members.

Claim

Notice to an Insurer that under the terms of a Policy, a Loss may be incurred.

Claimant

The person asserting a Claim.

Claims Made

An insurance written on a” claims made” basis, means that the insurance company will insure a member for a fixed period (usually 12 months, but may be longer) against any claim made during that period in respect of work undertaken by the member, at any time in the past (subject to any retro dates), in connection with the business being insured.

For example, if a member was insured on 1 January 2000 for a period of 12 months with the XYZ insurance company, that insurance company would, subject to the terms of the policy, meet and pay all claims that were made during that period , as a result of any activity which the insured had undertaken in connection with that business. If on 1 January 2001 the member were to change insurers and take out a policy with ABC Insurance Company, then that insurer will, subject to the terms of the policy, meet and pay all claims arising during the period 1 January 2001 to 31 December 2001. If a claim were to arise in 2001 as a result of work undertaken by a member some time during 2000 it would be to the ABC Insurance Company that the claim should be made, rather than to the XYZ Insurance Company.

Claims Notification Clause

A clause in a Policy which provides for prompt notification of Claims and can specify particular actions to be taken and time frames for this to be done in.

Collateral Warranty

Undertakings given that are collateral to another contract, that is running side-by-side.

In construction law, collateral warranty refers specifically to a contract between a professional consultant, building contractor or sub-contractor and a third party (for example, a funder, tenant or buyer).  It is an agreement under which a professional consultant, building contractor or sub-contractor generally warrants to a third party that it has complied with its appointment, building contract or sub-contract.

Cyber Policies

In response to the increasing presence of professional business on the internet and greater awareness of risks associated with this medium following a number of headline court cases, some insurers have introduced 'cyber' policies to cover these risks. The cyber extension may typically contains the following heads of cover:

• Infringement of any intellectual property rights including copyright, patent, trademark or moral rights or an act of passing-off.
• Breach of confidence or infringement of any right to privacy
• Misuse of any information which is either confidential or subject to statutory restrictions on its use
• Defamation

Cover is also provided in respect of:

• First cyber party losses due to cyber vandalism
• Claims against you arising from a cyber virus

Cyber Exclusions

Exclusion in respect of losses caused by a loss of electronic data and data transmission as a result of third party actions

Costs in Addition

The Professional Indemnity Insurance policy will cover cost and expenses incurred in the investigation and defence of the claim. If costs are in addition to the limit of indemnity they will not erode the limit. It is usually the case that Any One Claim policies have costs and expenses in addition and Aggregate policies have costs and expenses included in the limit of indemnity.

Costs Inclusive

The Professional Indemnity Insurance policy will cover cost and expenses incurred in the investigation and defence of the claim. If costs are inclusive in the limit of indemnity they will erode the limit available to settle to claim/award.