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Policy

Simple definitions of common insurance policy terms.

Terms

Job Rotation Policy

An organisational policy under which employees periodically move between different roles or functions to develop skills and reduce operational dependency on individuals.

Keyholder Policy

An agreement that designates specific individuals as authorised keyholders for business premises and sets out their responsibilities in the event of an alarm activation or security incident.

Knowledge Management Policy

An organisational policy governing how knowledge, information, and intellectual assets are captured, stored, shared, and protected within a business.

Key Performance Indicator Policy

An internal policy that establishes the metrics used to measure and evaluate individual, team, or organisational performance against defined objectives.

Trigger Event

A Trigger Event is the specific cyber incident or condition that activates coverage under a cyber insurance policy.

Aggregate Limit

The total ceiling on what the insurer will pay across multiple claims in a policy period.

Cancellation

Cancellation defines the terminating an insurance policy before expiry.

Claims-Made Policy

Cover that is triggered if a claim is made during the policy period, not when the act occurred.

Discovery Period

A discovery period (also called an "extended reporting period") refers to a specified timeframe after a policy expires during which the insured can still report claims for incidents that occurred during the active policy period but were not discovered until after expiration.

Endorsement

A written amendment to an insurance policy.

Excess

The first amount an insured must pay towards a claim before the insurer pays.

Exclusions

Events or circumstances that are not covered by the policy.

Extension / Extension of Cover

An additional benefit or broadened coverage in a policy.

Indemnity Period

The Indemnity Period refers to the length of time the insurer will compensate the insured for financial losses following a covered event. This is often used to calculate business interruption losses.

Insured

Insured is the person or organisation entity covered by the policy.

Insured Event

An insured occurrence that triggers policy response.

Insurer

The company which ultimately provides the policy of insurance and pays for losses covered under the policy.

Insuring Clause

The policy section that sets out what events are covered under.

Limit of Liability

The maximium an insurer will pay for a covered event.

Occurrence based policy

Occurrence based policy is the cover that applies if the incident happens during the policy period, no matter when the claim is made.

Period of Insurance

Period of Insurance is the timeframe stated in the policy schedule for which coverage is in effect.

Policy

An insurance contract that sets out the terms and conditions of coverage.

Policy Limit

The maximum amount payable under a policy for a covered loss.

Policy Schedule

Policy schedule the document that sets out the specific coverage details for an insured risk.

Renewal

Renewal is the process by which an insurance policy is replaced with a new contract for a subsequent period following expiry of the current policy.

Retroactive Date

The earliest date from which a policy will cover past acts or events.

Sub-limit

A maximum amount the insurance company will pay for a specific type of loss, which is within the overall policy limit.

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The information contained on this website is general advice only and has been prepared without taking into account your individual needs, objectives and financial situation. It should not be relied upon as advice. All insurance products are subject to the terms, conditions, limits and exclusions contained in the relevant policy wording and Product Disclosure Statement. Before deciding whether a particular insurance product is right for you, please consider your personal circumstances and read the relevant Product Disclosure Statement, Target Market Determination, Policy Wording, and Financial Services Guide.