A policy is made up of several documents that have to be read together: the wording, which sets out the general terms; the schedule, which records the specific choices made for you; and any endorsements, which change the wording for your policy alone.
The wording is long and largely standard. The schedule is short and entirely specific to you. If you only read one, read the schedule.
What to check first
Work through the schedule in this order. Each of these can be corrected in advance; none of them can be corrected after a loss.
- 01The insured name, which should match the legal entity that owns the asset or carries the liability.
- 02The description of the business or use, because activities that have changed since inception are the most common mismatch.
- 03Sums insured and limits, including whether a limit applies per claim or in the aggregate.
- 04The excess for each section, which is often not a single figure.
- 05Endorsements and conditions precedent, which sit at the end and carry the most weight.
Conditions precedent
Some conditions are described as precedent to liability. Where that language is used, failing to comply can affect the insurer's obligation to pay a claim, even where the failure had nothing to do with the loss.
Alarm-setting requirements, hot-work procedures and unoccupancy conditions are the ones we see most often. If a condition is impractical for you, that is a conversation to have at renewal rather than at claim.
If something looks wrong
Tell your broker. Corrections to a schedule are routine administration when made in the policy year and are considerably harder afterwards. Nothing on this page changes the terms of your policy; your own documents govern.
General information published by Aldergate. It is not advice, does not take account of your circumstances, and does not alter the terms of any policy. Your own wording, schedule and endorsements govern.