Fifteen terms – and every business insurance quote, policy and set of conditions becomes readable. One sentence per term, no padding; the full, continuously growing collection lives in the Glossary.
In brief:
- 15 terms in four groups: the parties involved, the boundaries of cover, the path of a claim, keeping the portfolio in order.
- No need to memorise them – it's enough to know where to come back to while you read.
- If a term appears differently in the actual conditions: the insurer's policy wording always governs.
The parties involved
- Policyholder – the one who concludes the contract and pays the premium; at companies, this is the company itself.
- Insured – the one whose interest the cover protects: the company, the asset, or the group of employees.
- Beneficiary – the one to whom the insurer pays the benefit.
- Assignee – the one to whom the payout is redirected, typically the financing bank or leasing company.
The boundaries of cover
- Sum insured – the declared value of the asset or risk, and the starting point for the payout.
- Limit of indemnity – the upper ceiling of what the insurer pays, per event or per insurance year.
- Deductible – the band of the loss that the company carries itself; its size moves together with the premium.
- Exclusion – a situation or circumstance for which the insurer does not pay, under the conditions.
- Underinsurance – if the sum insured is lower than the real value, the payout can be reduced proportionally.
The path of a claim
- Claim notification – reporting the loss to the insurer, primarily through the insurer's claims line or online portal.
- Loss mitigation – the policyholder's duty to stop the loss from growing further (and the cost of this is typically reimbursed).
- Request for further documents – the insurer's request for additional documents; not a rejection, just part of the process.
- Certificate of insurance – the insurer's confirmation that a given cover is in force; requested by partners and tenders.
Keeping it in order
- Renewal date – the contract's annual turning point: the natural time for review and re-tendering.
- Indexation – the annual, value-tracking increase of the sums and the premium, so the cover doesn't erode over time.
If you'd like to see these terms in action: the method for reading policy conditions shows you where to look for them, and reading quote comparison tables shows how they become decision criteria. Companies working with international partners will also find the mini-dictionary EN–DE–HU useful.
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This article is for information purposes only and contains general information; it does not constitute an offer, or insurance, legal or tax advice. The specific covers, exclusions and pricing are set by the insurers' terms and conditions in force at any given time – it is worth going through these item by item when you request a quote. Updated: August 2026.
