What is the difference between a broker and an insurer?

A broker arranges insurance on your behalf and works in your interests. An insurer underwrites the risk and pays claims. When you use a broker, you benefit from their market knowledge and access to a panel of insurers. Focus Insurance Services is a broker — we arrange cover but do not underwrite it.

What does "subject to average" mean?

"Subject to average" means that if your property is underinsured, the insurer will reduce any claim settlement in proportion to the degree of underinsurance. For example, if your building is insured for £500,000 but its true reinstatement cost is £1,000,000, the insurer may only pay 50% of any claim.

What is the difference between an excess and a deductible?

The terms are used interchangeably in UK insurance. Both refer to the amount you must pay towards a claim before the insurer contributes. A compulsory excess is set by the insurer; a voluntary excess is chosen by the policyholder.

What is a material non-disclosure?

A material non-disclosure occurs when a policyholder fails to disclose information that would have influenced the insurer's decision to provide cover or the terms offered. Material non-disclosure can result in a claim being refused or a policy being voided. You have a duty to disclose all material facts when applying for or renewing insurance.

What does "occurrence-based" mean for liability insurance?

An occurrence-based policy covers incidents that occur during the policy period, regardless of when the claim is made. This means that if an incident occurs while the policy is in force, you are covered even if the claim is made after the policy has expired. This is the standard basis for public liability and employers liability insurance in the UK.

Insurance Glossary: A to Z of Insurance Terms

A plain-English glossary of common insurance terms, from excess and indemnity to reinstatement value and subrogation. Compiled by FCA-regulated insurance brokers.