Insurance terminology is a starting point, not a coverage promise. Similar words can work differently between policies and countries. Read defined terms alongside the provision in which they appear.
The cost of the policy and your contribution
Premium: the price charged for insurance. When comparing quotes, ask for the complete amount payable and whether taxes, fees or instalment charges sit outside the figure first shown.
Deductible or excess: an amount you may have to bear under the applicable claim terms. Do not assume two identical numbers work the same way: ask what triggers the contribution, how often it applies and whether defence costs are treated differently.
Retention: another term you may encounter for a portion of loss or cost the insured bears. Its mechanics can differ from a deductible. Ask the provider to explain the provision rather than treating the words as interchangeable.
The amounts and boundaries
Limit: a stated maximum under the relevant policy provision. Find out what the number applies to, whether costs reduce it and whether other restrictions apply.
Aggregate: a combined limit across the claims or losses described in the contract for the relevant period. Ask how separate claims are counted and whether several claims could be treated as related.
Sublimit: a separate, smaller cap for a specified category within the cover. A large headline limit does not tell you whether a particular feature has a smaller cap.
Exclusion: wording that removes specified matters from cover. Read it with any exceptions or endorsements; a single sentence quoted out of context can mislead.
The documents and changes
Schedule or declarations: a document recording policy-specific information. Check the names, activities, dates and selected sections against the full wording.
Endorsement: an amendment to the contract. It can change the scope in different ways. Identify precisely which part it changes.
Condition: a requirement set out in the policy. Ask the insurer to explain the actions expected of you and the consequences of failing to meet it.
Timing and place
Retroactive date: a date used in some policies to limit which earlier acts or work may qualify. The surrounding wording and other conditions matter. Do not treat the date alone as proof of cover.
Claims-made: a structure in which the timing of a claim is relevant to cover. Reporting provisions and prior-work restrictions need their own review. See the questions to ask before switching.
Territory and jurisdiction: provisions addressing geographic scope and, for example, the courts in which claims can be brought. Ask about both when working with overseas clients.
Turn a definition into a question
Instead of asking “Is the limit enough?”, identify the scenario, section and costs you want to understand. Instead of asking “Is overseas work covered?”, identify the client entity, country and contract. A precise question gives your adviser a better starting point.
These are simplified educational explanations. They do not replace legal interpretation or establish how a particular claim would be settled.
Sources & further reading
Sources consulted 2026-10-08. Examples and worksheets are original illustrations, not accounts of actual claims.