Thirty terms, each explained in a sentence or two – so every quote, policy wording and article makes sense. The definitions are for guidance only: the exact meaning always comes from the given insurer's policy conditions. For the shorter, beginner-friendly version: the basics in minutes.
B–D
Broker: an independent insurance intermediary acting on the client's instructions – compares quotes from several insurers; the decision is the client's. Certificate of insurance: the insurer's statement confirming that cover is in place and what it covers – requested by clients, chambers, tenders. Claim: the injured party's demand against the party who caused the loss. Claims handling: the insurer's process from notification to decision: facts, liability, quantum. Claims-made: a time-basis logic in which cover is determined by the date the claim is first asserted against the insured (policy terms often combine this with a separate notification deadline owed to the insurer). Deductible: the part of the loss the policyholder bears themselves – as a fixed sum, a percentage, or a combination. Duty of disclosure: the policyholder's obligation to disclose material circumstances truthfully – at inception and whenever they change.
E–I
Employer's liability insurance: cover for claims against the company arising from an employee's occupational accident. Exclusion: what the cover doesn't extend to – listed item by item in the policy terms. Extended reporting period (run-off cover): a notification window kept open for claims arising from earlier work, after the contract has ended. Extension (endorsement): a module, typically available for an extra premium, that broadens the base cover. Grievance award (sérelemdíj): compensation for the infringement of personal rights under Hungarian civil law – a legal concept distinct from compensation for financial loss. Insured: the party whose liability the cover extends to – typically the business and its employees. Insured event: the occurrence defined in the policy terms that triggers the insurer's obligation to pay.
L–P
Limit of indemnity (limit): the upper boundary of what the insurer will pay – typically set per claim event and per insurance year. Loss event: the occurrence that triggers the loss – the basis on which the deductible and the limit are applied. Loss mitigation: preventing a loss that has already happened from growing worse – an obligation of the policyholder. Occupational accident: an accident occurring in connection with work – a labor-law concept, and the point where employer's liability connects in. Policyholder: the party who takes out the insurance contract and pays the premium. Product liability: liability for damage caused by a manufactured or distributed product – and the insurance cover for it. Professional indemnity insurance: cover for losses – often pure financial loss – arising from a professional error. Property damage: damage to, destruction of, or loss of use of an item of property. Public liability insurance (general liability): cover for personal injury and property damage caused to others in the course of operations. Pure financial loss: a financial disadvantage without personal injury or property damage – a fine, an extra cost, lost profit.
R–W
Recourse (subrogation-style recovery): when the insurer claims back the compensation it has paid from the party who caused the loss – typically in cases of gross negligence. Retroactive date: under claims-made cover, the date back to which cover extends for claims arising from earlier work. Start of cover: the date from which the insurer bears the risk – not necessarily the day the policy was signed. Sub-limit (inner limit): a lower internal limit that applies to certain types of loss, within the main limit. Territorial scope: the geographic area within which the cover applies. Third party: an injured party outside the contract – public liability insurance handles their claim. Waiting period: for certain covers, the period after the start of cover during which cover is still limited.
If you still can't find a term: use the magnifying-glass search in the header to search the whole site – or ask us at a free consultation. For the three-language equivalents: the EN–DE–HU mini dictionary.
How to use this glossary
Three tips for getting the most out of it. While reading: if an article uses a word you don't recognize, you'll find it explained here in a sentence – the articles are deliberately written to lean on this collection. While reading a quote: open this page in a second tab and work through both side by side – the vocabulary in a quote is exactly this list. When checking your policy: the questions in the contract checklist are built on these terms – if a checklist item isn't clear, the explanation is here. This glossary grows as Insights grows – if you've come across a word on the site or in a quote that isn't here, let us know: it will be added in the next update.
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