Thirty terms, one sentence each – enough to move confidently through the world of company insurance. The shorter, beginner version: the basics in minutes. If a term appears differently in your own conditions: the insurer's policy conditions always govern.
In brief:
- 30 terms in alphabetical order, in plain definitions – for looking up, not memorising.
- The definitions are general compasses – the precise, contractual definition can differ by insurer.
- Trilingual equivalents for international work: mini dictionary EN–DE–HU.
A–D
- All-risk cover – every risk is covered except what the conditions expressly exclude; the opposite of named-risk cover.
- Assignment – redirecting the insurance payout to a third party, typically the financing bank or leasing company.
- Beneficiary – the person or entity to whom the insurer pays the benefit.
- Broker – an intermediary who acts on the client's mandate, independent of insurers; remunerated by the insurer, not the client.
- Business interruption insurance – cover for the fixed costs that keep running and a limited wage burden during a standstill caused by property damage; it does not replace lost profit, as many hope.
- Cancellation window – the period before the renewal date within which the contract can be properly cancelled.
- Certificate of insurance – the insurer's confirmation that cover exists, with its key details; requested by partners, tenders and banks.
- Cover – the scope of risk for which the insurer undertakes to pay a benefit.
- Deductible – the part of a loss the company bears itself; it can be a fixed amount, a percentage, or a mix of both.
E–L
- Endorsement (clause) – a special provision attached to the contract that modifies or supplements the standard conditions.
- Exclusion – a situation or circumstance for which the insurer does not pay, under the conditions.
- Inception of cover – the point in time from which the insurer answers for losses; not automatically the same as the day of signature.
- Indexation – the renewal-date, value-tracking increase of sums and premium, so cover doesn't erode over time.
- Insured – who or what the protection applies to: the company, the asset, or the group of employees.
- Limit of indemnity – the upper ceiling on the insurer's payout, per event or per insurance year; a sub-limit is a separate cap for one specific risk.
- Loss mitigation – the policyholder's duty to stop a loss from spreading further; its reasonable costs are typically reimbursed.
- Loss-prevention requirement – an expectation set out in the conditions (e.g. security, maintenance), breach of which can affect the payout.
M–P
- Machinery breakdown insurance – cover for machines' sudden, internally caused failures; wear and tear is not included.
- Named risk – an insured event listed item by item in the conditions; whatever isn't on the list isn't covered.
- Overinsurance – a sum insured higher than the real value; it doesn't produce a higher payout, only a higher premium.
- Policy – the document confirming that the insurance contract exists, with its key details.
- Policyholder – the party who concludes the contract and pays the premium; for companies, the company itself.
- Pro rata (proportional) settlement – under underinsurance, the loss is paid in the ratio of the sum insured to the real value.
R–W
- Renewal date – the contract's annual turn date: the natural time for review, cancellation and re-tendering.
- Request for further documents – the insurer's request for additional paperwork on a claim; a normal part of the process.
- Secondary cover – cover that only responds to the part of a loss not reimbursed from elsewhere.
- Sum insured – the declared value of the asset or risk, the starting ceiling for the payout.
- Territorial scope – the geographic area within which cover applies.
- Underinsurance – the sum insured is lower than the real value; the payout can be reduced proportionally at a claim.
- Waiting period – the period after the inception of cover during which certain benefits are not yet payable.
The concepts in action: how to read conditions · how to read a quote table. International equivalents: mini dictionary EN–DE–HU.
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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.
