Giving up the proprietary rights in insured property to the underwriter in exchange for payment of a constructive total loss.

Clauses often contained in an insurance policy stating that the insured cannot abandon damaged property and then file a claim with an insurer.

Any sudden event which is unintended.

A specific time period that the insured must establish before benefits begin or are paid out.

A natural event, not preventable by human intervention, such as floods, storms, or lightning. Such forces of nature are beyond the control of a carrier and therefore the carrier cannot be held accountable.

The cost to replace an item or property at the time of loss, less any allowance for depreciation.

This occurs when the insured's property is completely destroyed; or the insured is irretrievably deprived of the insured property; or cargo changes in character so that it is no longer the commodity that was insured.

Same as Valued Bill of Lading or Declared Value Bill of Lading.

Carrier information indicated on a certificate of insurance that would prove useful to the insured for reference (e.g. voyage number, bill of lading number, etc.)

Comments and information indicated on a certificate of insurance for the insured's reference (e.g. letter of credit information, invoice numbers, etc.)

An individual or entity that is not included as an insured under the insurance policy of another party, but may be added to provide a certain degree of insurance protection.

A standardized set of agreements offered by one party (usually the stronger) to another on a 'take it or leave it"" basis. An insurance policy is an example of such a contract. The insurer offers a personal auto policy for example, that an individual may ""adhere to"" (or not) but in any case the individual may not change any of its terms. Because it has the stronger position the insurance company has the burden to spell out its terms precisely. Otherwise the courts have demonstrated that the advantage goes to the insured in any issue subject to more than one interpretation. Not to be confused with ""ALEATORY CONTRACT.""

A person who investigates and settles losses for an insurance company, or may be hired independently to resolve any issues between the insurance company adjuster and the insured.

The investigation process of settling claims by an insurance company.

An insurance company that is licensed (admitted) to conduct business within a given state.

An agreed percentage increase applied to the total of invoice plus freight, for unknown expenses at the time of shipment, and also for a portion of the insured's profit.

Same as Prepared Freight

Relates to a policy whose premium cannot be precisely determined until the end of the term. The advance premium, also called ""deposit premium"", is a down payment on what will be the final premium.

The exposure of property to risk in transit.

A contract which sets forth the obligations of both shipper and carrier concerning transportation of the merchandise. The most common forms of affreightment are Bills of Lading and Waybills.

An insurance company representative licensed by the state who solicits, markets, negotiates, binds, and administers contracts of insurance while providing a valuable service to a policyholder for the insurer.

A deductible in some insurance contracts in which all covered losses during a year are figured together and an insurer pays only when the aggregate deductible amount is exceeded.

A bill of lading issued by an airline acknowledging receipt of merchandise and indicating conditions for carriage.

A broad form of coverage, providing protection against all risks of physical loss or damage from any external cause. It does not embrace loss or damage due to delay, wear and tear, inherent vice, pre-shipment conditions, inadequate packaging, or loss of market.

Coverage through an insurance contract that promises to cover all losses except those losses specifically excluded in the policy.

A formal document revising the provisions of an insurance policy. Usually, signed jointly by an insurance company officer and the policy owner or an authorized representative.

An annual premium is paid and this is adjusted at the end of the year based upon declarations made.

A statement of facts made by a person applying for insurance. The application is used by the insurance company to decide whether or not to issue a policy. The application becomes part of the insurance contract when the policy is issued.

An evaluation of property made to ascertain either the appropriate amount of insurance to be written or the amount of loss to be paid.

An ""approved"" vessel is one, which the underwriters deem adequate to carry the insured cargo, at the agreed rate of premium. Where the vessel is not approved, the risk is still covered but subject to a reasonable additional premium.

The passing of beneficial rights from one party to another.

The name of the party insured under the insurance contract.

A number assigned by the credit card company when a transaction is successfully processed.

A draft certificate that has been paid for by the insured either through a credit card or through credit terms negotiated in advance but where the Original certificate has not yet been printed. These cannot be edited or deleted.

A specialist appointed by a ship owner to prepare a General Average Statement.

The clause in marine policy, which sets out the coverage, provided in the event of partial loss.

Indicates that partial losses will be paid regardless of any franchise or deductible.

The right of an underwriter, in the event of a breach of good faith or delay in commencement of an insured voyage to step aside from the insurance contract and to treat it as though the risk had never been accepted.

Person or concern having the possession of personal property entrusted to him by the owner of said property.

A policy that covers the loss or damage to the personal property of customers.

Fraudulent, criminal, or wrongful act willfully committed by ship's captain or crew which causes loss or damage to the ship or cargo.

The core currency (United States Dollars) that MoveInsure uses for its calculations. Reports run in Base will convert all amounts to USD equivalent.

Date when risk commences.

A clause by which the bailee of goods claims the benefit of any insurance policy effected by the cargo owner on the goods in care of the bailee. Such a clause in a contract of carriage issued in accordance with the Carriage of Goods by Water Act is void at law.

The most common form of affreightment which serves three purposes: the contract of carriage between the ship owner and shipper, outlining the liability of carrier; the ship owner's receipt for the goods; and the document of title to them; (i.e., as a negotiable document, interest can be assigned to a third party).

A written contract issued to place insurance. (Generally authorizing a broker to effect insurance on the Insurers behalf.)

The evidence or receipt given for a premium payment accompanying an application for insurance.

Driving the tractor of a semi after the trailer has been delivered and removed.

Shipments on which duty is payable, but which are permitted to travel to inland destinations before customs inspection is made and duty is actually paid.

The maximum value at risk per shipment/sending/aircraft.

One who represents an insured and who may render solicitation, negotiation, for services that deal with a contract of insurance on behalf of the insured.

Also known as Agent of Record, this is a broker who is designated to handle certain insurance contracts for the named insured.

A term describing consumer electrical goods e.g. Hi-fis, Televisions.

An insured's reference number for Dun and Bradstreet, Chamber of Commerce, etc.

A sale term under which all costs of goods and transportation [to the named port] are included in the price quoted. The consignee makes their own insurance arrangements for the goods throughout the period of transit, from aboard ship to overseas inland destination.

A term of sale whereby the seller provides insurance and freight up to [the named port] final destination.

Termination of a contract of insurance in force by voluntary act of the insurer or insured in accordance with the provisions in the contract or by mutual agreement.

Flat cancellation means the premium is returned to the insured. A pro rata cancellation means the insurer has charged for the time the coverage was in force. Short rate cancellation entails a penalty in excess of pro rata for early termination.

An insurance policy covering cargo whilst in transit.

International agreement defining the responsibilities and liabilities of an ocean carrier transporting cargo.

Canadian legislation defining the responsibilities and liabilities of an ocean carrier transporting cargo.

The type of insurance concerned with the legal liability for losses caused by injury to others or damage to property of others.

An event in which loss is of extraordinary magnitude, such as a hurricane or tornado.

The number assigned to a given insurance certificate by MoveInsure.

A document presented by the insurance company or insured as evidence that insurance is in effect. The insured may assign his rights under this negotiable document to a third party, usually the consignee, by endorsing the reverse of the certificate.

One of the EXTENDED COVERAGE perils, associated with RIOT and referring to a less widespread or generalized event than ""riot"" might be thought to encompass.

A request by the insured for indemnification by the insurance company for a loss that is a covered peril.

A representative of an insurance company that is authorized to investigate claims.

Allows an insured to assign payment of claims covered by an insurance certificate to a third party.

In an insurance policy, wordings describing coverages, exclusions, duties of an insured, and termination of coverage, and other such parts of the insurance policy.

A bill of lading on which the carrier has made no indication of the condition of the cargo at the time of acceptance for carriage.

An insured's reference number for a given shipment of goods.

Freight which is payable to the carrier when the merchandise arrives at the port of discharge named in the bill of lading.

Physical contact of conveyance with any external object.

A measure of the dollars spent for claims and expenses and premium dollars taken in.

A document issued by the seller to the buyer, which gives detail of merchandise sold, number of units being shipped, per unit cost and terms of sale.

The specific kind of merchandise being insured under an insurance certificate / policy.

Any ship owner or other carrier who offers vessels or other modes of transportation to the public for the purpose of transporting merchandise.

An arranged settlement on a hull policy where there is not a claim for actual or constructive total loss, but where it is impractical to repair the vessel.

Failure of an applicant for insurance to reveal a material fact to the insurance company.

Provisions stated in an insurance contract that state the rights and duties of the insured, or the rights and duties of the insurer.

A financial loss occurring as the result loss damage or non-delivery of the interest insured.

One of the elements that make up an insurance contract, consideration is the offer made by the insurance company to the insured for payment of the premium and the statements made by the prospective policyholder on their application.

The Party to whom cargo is shipped.

The Party who ships the goods.

The position which exists when the cost of repairing or recovering lost or damaged property plus the value of the salvage would exceed the property's value when repaired or recovered.

A secondary insurance coverage that will protect an insured's financial interest if the primary insurance coverage effected by others does not respond for a covered loss.

An agreement between the insured and the insurance company that provides a legally enforceable obligation to provide benefit payments for all premium amounts received.

A bond used to guarantee the performance of a construction contract and the payment of all materials and labor bills.

See ADHESION CONTRACT

This relates to situations where more than one party covers the risk. Each party is deemed to be liable for its portion of the loss.

The value of property saved as a result of a General Average Act which forms the basis for determining each party's contribution in General Average.

The name of the vessel carrying a shipment or the carrier's name if the specific vessel's name is not known.

The type of carrier moving cargo (e.g. Sea / Ocean Carrier, Rail, Road Haulier / Trucker, Barge, etc.)

A Bill of Lading which shows the actual number of units being shipped.

An authorized signature (of agent or company representative) on an insurance policy.

Damage caused by dirt, mud, etc., to commodities before they are shipped.

The trading country to which goods are to be exported.

The country in which the insured is located.

The trading country from which the good originated.

A non-negotiable document evidencing insurance that may or may not indicate the terms of coverage.

When reporting a declaration the terms of sale the goods where shipped under. (e.g. FOB/FAS, DIC, CIF, C&F etc.)

An accident, including accidental damage by forces of nature, that brings a contract of insurance into play.

A firm that specializes in clearing imported merchandise for transit to the interior. Normally responsible for obtaining and submitting all documents for clearing merchandise through customs and arranging inland transport as well as paying all charges related to these functions.

A form required by Canada Customs for all merchandise entering Canada. It indicates country of origin, description of merchandise and amount of estimated duty to be paid before merchandise is released by customs.

Documents against acceptance sight draft. A method of payment for goods in which documents transferring title are delivered to the buyer as soon as he signs an acceptance, stamped on a draft, guaranteeing payment of the draft.

A consequential coverage commonly included in DIRECT LOSS policies. For example, fire policies provide limited recovery for the insured's cost of removing the debris after a covered fire. Not to be confused with REMOVAL.

Form used by insured in reporting shipments under a Policy when no evidence of insurance is required.

A number used by the insured to tie together various shipments (e.g. July 2000)

The insurer's rejection of an insurance application.

A specified amount, or percentage of the insured value, which will be deducted from all losses recoverable under a policy.

Excess time taken for loading or unloading of a vessel not caused by the vessel operator, but due to the acts of a charterer or shipper. Also refers to imported cargo not picked up within prescribed time. An additional charge is often made for containers held beyond the usual unloading period.

The premium deposit paid when an application is made for an insurance policy. The premium is calculated as a proportion of the estimated earned premium for the period.

The decrease of value in property over a period of time due to wear and tear or obsolescence.

Electrical or mechanical damage to mechanical apparatus.

The complete description of items being insured under an insurance certificate, which appears on the certificate. Wording may need to be very specific and detailed to meet letter of credit requirements.

Property insurance obtained through the EXCESS and SURPLUS LINES MARKET to supplement and expand on the property coverage available through ADMITTED MARKETS. DIC has been called the ""property umbrella"" policy.

Sale by an exporter directly to a buyer located in a foreign country.

The immediate consequence of the action of an insured peril. A fire-damaged structure is a ""direct loss"" by fire. In contrast, see CONSEQUENTIAL LOSS.

A condition which requires the insured voyage to be direct from one place to another. If the voyage is delayed en route or if there is a deviation from the direct route, the insurance coverage continues subject to payment of an additional premium, but only if the insured gives prompt notice of the delay or deviation immediately on receipt of advices, unless the policy provides otherwise.

To unload cargo from a vessel or other conveyance.

The duty of the assured and the broker to tell the underwriter every circumstance before acceptance of a risk.

A unit within an insured business.

A form issued by a carrier or their representative as evidence that merchandise was in fact received by the carrier for shipment. Often referred to as a Received for Shipment Bill of Lading.

An insurance company is considered a domestic company in the state in which it is incorporated.

Refers to merchandise shipped from the manufacturer's warehouse to the final consignee's warehouse. Same as House to House, or Warehouse to Warehouse.

A tax levied by a government on the import, export or use and consumption of goods.

The value reported to insure duty for a given shipment.

The amount of policy premium that has been earned at any point in time from inception of term to the end. A disproportionate amount will have been ""earned"" during the early days of a contract that is subject to SHORT RATE CANCELLATION.

The date when an insurance policy commences cover.

The date when a risk terminates.

An amendment to an insurance policy that alters the provisions of the contract.

The value of insurable shipments transported in a year.

The premium expected to be earned during the insurance period.

Point of Origin or from the point where the shipment begins movement. E.g. ex-works. See Incoterms.

The seller is obligated to place the goods on the import dock clear of all customs and duty requirements. (The buyer must then pick up the goods within a prescribed time limit.)

The seller is obligated to place the goods at his mill loaded on trucks, railroad cars or any other specified means of transport. (The buyer must make all arrangements for transportation.)

The specific conditions or circumstances listed in the policy for which the policy will not provide benefit payments.

A show or trade event.

A Marine Cargo Policy normally provides cover while merchandise is in transit. However, an Exhibition Cover extends coverage to include the merchandise while it is on exhibit (usually at a trade show) and the return shipment (unless the merchandise is sold).

A record of losses.

The date indicated in an insurance contract as its termination date

To send goods to a foreign country.

The seller must deliver the goods to the vessel side.

Full Container Load.

The same as F.O.B. named inland carrier, except the seller pays the freight charges of the inland carrier.

The same as F.O.B. named insured carrier, except the seller pays the freight charges of the inland carrier.

Seller must place the goods on the named carrier at the specified inland point and obtain a bill of lading. The buyer pays for the transportation.

Seller is responsible for placing the goods at a named point of exportation at the seller's expense. Some European buyers use this form when they actually mean F.O.B. vessel.

Seller is responsible for goods and preparation of export documentation until actually placed aboard the vessel.

The certificate status used when a certificate has been paid for by the insured either through a credit card or through credit terms negotiated in advance and the original copy has been printed. This cannot be edited or deleted but can be cancelled/voided.

The specific place that goods are being delivered to.

Combustion evidence by a flame or glow. Insurance distinguishes between a hostess HOSTILE FIRE (one out of bounds) and FRIENDLY FIRE (such as that contained within the firebox of a stove).

see Cancellation

The certificate type that the client is using. If the client has more than one form type they are given an option to elect which one they wish to utilize for the current certificate.

Similar to a deductible, but if the recoverable loss equals or exceeds the franchised amount the loss is paid in full.

An insurance clause providing that loss is not insured if due to capture, seizure, confiscation and like actions, whether legal or not, or from such acts as piracy, civil war, rebellion and civil strife.

Sometimes referred to as ""C Clauses."" This is a restricted form of insurance that covers the goods against total loss by Marine perils. Partial losses are recoverable only if the vessel has stranded, sunk or burnt or the loss has been caused by fire, collision, contact of the conveyance or by discharge of the cargo at a port of distress. American F.P.A. clauses are narrower in their cover.

Same as FPA except that the partial losses referred to are recoverable if the vessel has stranded, sunk, burned, been on fire or in collision, regardless of whether such losses were actually caused by any of these perils.

Goods sold under such terms are at charge and risk of the seller until on board shipping vessel or aircraft. (other terms include ""Free Alongside Steamer,"" ""Free on Rail,"" etc.)

Firm specializing in arranging transport of merchandise and completing documentation required for the orderly transport of merchandise. Occasionally, they will take merchandise for the purpose of packing or consolidating with other cargo for export to the same country.

A notation on a waybill which indicates that a specific value has been declared to the carrier for carriage of the merchandise. In the event of a claim, the carrier would be held liable for the full amount declared.

Loss arising through a voluntary sacrifice of any part of the ship or cargo, or an expenditure, to safeguard the ship and the rest of the cargo. All parties to the venture share the loss.

Document required of cargo owners, after a GA loss, obtaining their agreement to pay any contribution that may become due.

Such losses or expenditures are contributed to by all the interest at risk on the basis of their respective values.

Given by cargo underwriters, after a GA, agreeing to meet their insured's liability for contribution.

The general trade routes where cargo is shipped.

Insurance premium paid by the policyholder.

Freight which is not prepaid but which is payable whether or not the merchandise arrives at the final point of destination.

Drafted in 1968, this is an international statute that defines the responsibilities and liabilities of ocean cargoes. Like most nations, Canada has endorsed these rules in Bill C-83 (Carriage of Goods by Water Act, 1993). The United States is notable here in that it has not adopted Hague-Visby; instead, it enshrines the more restrictive Hague Rules (1938) in the Carriage of Goods by Sea Act (1936). This will determine how much one may claim against a carrier.

See above. Drafted in 1978, these rules are more permissive than the Hague-Visby Rules. Few countries have endorsed the Hamburg Rules to date.

A system of classifying products for trade purposes developed by the Customs Cooperation Council (CCC) in Brussels and its 150 member countries. Individual countries use their own national classifications but the first 6 digits are standard (or harmonised) across all countries using the system. The first countries introduced the system in 1988 and it is now used by over 50 countries (including TradStat reporting countries.)

A provisional acceptance of risk, subject to confirmation that cover is needed at a later date. Where applicable to an existing insurance, coverage is conditional. In practice, on prompt advice to the underwriter as soon as the insured is aware of the circumstances to be held covered coming into effect, and a reasonable additional premium is payable if the risk covered comes into effect, the insured is covered.

A contractual assumption by one party of the liability exposure of another. Lease agreements, for example, commonly require the tenant to hold the landlord harmless for bodily injury or property damage experienced by others on the premises.

An air waybill issued by a freight forwarder for an air shipment.

See Door-to-Door

A tropical storm marked by extremely low pressure and circular winds with a velocity of 75 miles an hour or more.

Institute Cargo Clauses. There are three basic sets of these clauses. (A, B, and C). The (A) Clauses cover all risks, subject to specified exclusions. The (B) and (C) clauses cover named perils, subject to specified exclusions.

A merchant who buys overseas for his own account for the purpose of later resale, handling all details of import documentation and transportation. Usually the merchant is specialized in one or two commodities.

The compensation to the insurers of a loss, in whole or in part, by payment, repair, or replacement.

An individual or member of a firm who contracts with insurers to investigate claims and suggest appropriate settlements.

A property in cargo which causes, or is liable to cause, loss or damage to the cargo, without any accident occurring (e.g., spontaneous combustion). It is always excluded by the insurers of the cargo because of its inevitable nature.

A haulier which transports goods between inland points.

A broad form of insurance covering goods between inland points.

Not having sufficient financial resources to meet financial obligations.

The accepting of an applicant for insurance by the insurer.

It is illegal for anyone to insure without an insurable interest, or in the case of marine insurance, a reasonable expectation of acquiring such interest. In general one has such interest when one's relationship to property at risk may expose one to loss or liability where one stands to gain by the safety of the property.

The conditions that make a risk insurable are: (1) It must be accidental, (2) The loss must be defined, (3) The peril insured against must produce a definite loss and hardship not under the control of the insured, (4) There must be a large number of exposures subject to the same perils, (5) The loss must be calculable and the cost of insuring must be economically feasible, (6) The peril must be unlikely to affect all insureds simultaneously, and (7) The loss produced by a risk must be definite and have a potential to be financially serious.

A system under which individuals, businesses, and other organizations or entities, in exchange for payment of a sum of money (called a premium), are guaranteed compensation for losses resulting from certain perils under specified conditions in a contract.

The top insurance regulatory official in a state.

An organization chartered to operate as an insurer.

A person or organization covered by an insurance policy, including the ""named insured"" and any other parties for whom protection is provided under the policy.

The sum reported to insure a given shipment

The currency type for the reported insured value.

The party to the insurance contract who promises to pay losses or benefits, or any corporation engaged primarily in the business of furnishing insurance to the public.

The part of an insurance contract stating the promises of the insurer.

A clause which sets forth the type of loss being covered by the insurance policy and the parties to the insurance contract.

The date a certificate of insurance is issued. In most cases this is equal to the day the certificate is locked.

Act of throwing overboard part of a vessel's cargo or property to safeguard the ship and other cargo.

Less than full Container Load.

The termination of an insurance policy due to non-payment of premium(s).

The unlawful taking of personal property of another.

A hidden flaw that will, in time, cause property damage that is uninsurable. Such damage is uninsurable because the element of chance is no longer present.

An underlying principle of insurance; the larger the number of participants in a given arrangement, the more accurate the rate is to the exposure.

Method of payment between buyer and seller commonly used for international trade. It is arranged through banks and guarantees payment according to the terms of sale. The buyer opens a letter of credit in favor of the seller at a local bank and deposits the amount of the purchase price. The Letter of Credit is sent to the seller's bank and payment is released upon presentation of appropriate documentation.

Any legally enforceable act or obligation.

The maximum sums listed on a liability policy for which an insurance company provides protection.

A large, open, flat-bottomed craft used in loading and unloading ships in shallow water.

A passenger and / or cargo vessel operated on a definite and regular route. It is the opposite of a tramp steamer.

Indicates a completed certificate that can not be changed. This status can be deleted or Authorized.

The reduction in the value of an insured's property caused by a covered peril.

Any actions intended to reduce the frequency or severity of losses.

A means of protecting a mortgagee's interest in property by directing the insurer to make a loss payment to the mortgagee in the event of a loss.

A measure which reduces the probability of a particular loss but does not eliminate completely all possibility of that loss

The ratio of claims to premiums.

An amount set up as the estimated cost of a claim.

Insurance primarily concerned with transportation, exposures and property that is commonly moved around from place to place. The field is divided between INLAND MARINE and OCEAN MARINE.

The price at which insured property could have been sold just prior to its loss or damage. Along with ""cost new minus use deprecation,"" market value is but another gauge used to determine the loss settlement to which an insured is entitled. The insured may choose the gauge that produces the most favorable outcome.

The details provided by a seller to identify a specific shipment.

An air waybill issued by the originating airline when more than one airline is involved with a shipment, or when a freight forwarder issues a house air waybill.

Any circumstances / fact which would influence the judgment of a prudent underwriter in determining whether to accept a risk and the amount of premium to change.

A statement made to the underwriter before acceptance of risk that is material to the decision in accepting and rating the risk.

A false, incorrect, or incomplete statement of a material fact, made in the application for a policy.

A hazard arising from any nonphysical, personal characteristic of a risk that increases the possibility of loss.

Coverages in a policy that provide protection from loss of perils specifically listed in the insurance policy. Examples of named perils are fire, windstorm, theft, smoke, etc.

The failure to use the reasonable care that a prudent person would have used under the same or similar circumstances.

The premium due to underwriters after deductions of all commissions etc.

Indicates that coverage for a specific shipment terminates after discharge from the carrying conveyance.

A notation on an air waybill or bill of lading that indicates that no specific value has been declared to the carrier. In other words, no dollar value has been declared for the commodity being shipped thus limiting the carrier's liability to that stipulated by statute.

Disappearance of an entire shipping package rather than the contents themselves or a portion of the contents.

The failure of the insured or their broker to disclose a material circumstance to the underwriter before acceptance of the risk. A breach of good faith.

A firm that offers the same services as an ocean carrier. They usually consolidate several small shipments into full containers and arrange transportation by ocean common carriers. They are subject to the same laws and statutes as apply to a primary common carrier.

The orderly transit of merchandise from the point of origin to the final destination without interruptions or delays resulting from the action or inaction of any party at interest.

A condition that must precede a constructive total loss. If the insured fails to give notice to the underwriter, the loss can be treated only as a partial loss unless an actual total loss is proven. An underwriter who accepts notice admits liability for the loss. Notice is not necessary where it would not benefit the underwriter, where the underwriter waives the obligation or in the case of a re-insurance provided the policy incorporates the ""waiver"" clause, action taken by an underwriter to prevent or reduce the loss is not deemed to be an acceptance of abandonment.

Written notice by an insurance company of their intent to cancel the policy.

Notice to an insurer that a loss has occurred. Notice of loss is a condition of most policies, and it is frequently required within a given time and a particular manner.

An event that results in a loss that is insured.

Insurance for sea-going vessels, including liabilities connected with them, and their cargoes.

A bill of lading confirming the receipt of merchandise and the fact that it was loaded on board the ocean vessel.

A bill of lading which states that the cargo has been stowed on deck and is at the shipper's risk. The carrier is not liable for loss or damage unless due to gross negligence.

These are for those clients who have a regular turnover of goods in transit. The contract will cover all shipments that come within the scope of the insurance. Premiums are debited monthly or quarterly.

A bill of lading which gives carriers the right to stow cargo wherever they see fit, especially with respect to the stowage of containers on deck.

When two or more policies cover the same interests for the same exposures, each policy is said to represent ""other insurance"" to the other.

All additional premiums charged on an open cover declaration where the carrying vessel is outside the scope of the classification clause. It may be applied, also, to additional premium charged for breach of navigational warranties (e.g., institute warranties) where the ship is more than 15 years old.

Clause that stipulates that partial loss to a pair or set of items will be valued in terms of the lost item, not on the basis of the attire pair or set.

A partial loss caused by marine perils, other than a General Average loss.

The cause of a loss insured against in a policy.

Hazards arising on navigable waters through natural forces such as abnormally heavy seas, high winds, etc.

Description used on the insurance certificate to provide identification for a shipment.

Theft of the contents, in whole or in part, of a shipping package.

The specific address where a shipment originates.

The legal document issued by the company to the policyholder, which outlines the conditions and terms of the insurance; also called the policy contract or the contract.

The period of time for which an insurance policy provides coverage.

An identifying set of letters, numbers and/or geometric symbols followed by the name of the port of destination, which are placed on export shipments. Foreign government requirements may be exceedingly strict in the matter of port marks.

A port at which foreign goods are admitted into the receiving country.

A form to be completed for goods prior to their shipment. A full description of the goods should be included with accessories, damages and marks noted.

A feature of a cargo which occurred prior to the date shipment.

The sum paid by a policyholder to keep their insurance policy in force.

The currency type for the payment of insurance premium on a specific shipment.

Allows the insured to pay part of the premium when coverage takes effect and pay the rest during the policy period through arranged payments.

Freight paid by the shipper to the carrier when merchandise is accepted for shipment. Not refundable even if the merchandise does not arrive at the intended destination.

The first contact person for marine insurance.

The first coverage to apply. Contrast with EXCESS INSURANCE.

In insurance, a term identifying the insurance agent, field rep, or other employee that sells insurance.

Indicates that a professional mover packed personal effects.

Documentation presented to the insurance company by the insured in support of a claim so that the insurer can determine its liability under the policy.

The effective cause of loss or damage; an unbroken chain of events between the occurrence and damage.

The pricing factor upon which an insurance premium is based.

A bill of lading issued by the carrier evidencing actual receipt of merchandise for shipment. Also referred to as a Dock Receipt.

The amount recovered from a third party responsible for a loss on which a claim has been paid.

Indicates that further underwriting review must be done prior to issuing a quote or registration.

Indicates that a certificate has been referred to the underwriting unit for further review prior to issuing a quote.

Payment of the expenses actually incurred as a loss covered by the policy.

Type of affreightment where no specific value has been declared for carriage. (See No Value Declared).

A continuance of insurance under a policy beyond its original term by the insurer's acceptance of the premium for a new policy term.

The substitution of insurance coverage from one policy contract to another.

The cost to repair or replace property without considering depreciation.

The cost to replace an item of like kind and quality at destination. Example: You are moving from the US to the UK.  You purchase a refrigerator in the US for $1,000 and intend to ship it to the UK.  In the UK, the same refrigerator costs $1,500.  You should insure your refrigerator for $1,500 and not for $1,000.  Otherwise, you risk underinsuring your refrigerator, and triggering a Co-Insurance clause. See also, Underinsurance.

A statement of fact made by the insured or their broker when negotiating insurance with the underwriter.

The chance of loss. Also used to refer to the insured or to property covered by a policy.

The taking of property from a person by force or threat of violence.

The deliberate casting away or destruction of property to prevent greater loss. General Average sacrifice is for the common good and saved interests make good the sacrifice in proportion to the saving enjoyed.

The recovery made by an insurance company by the sale of property that has been taken over from the insured as a part of loss settlement.

The reward payable to salvors for saving life and property at sea.

There is an implied warranty in every voyage policy that the ship must be seaworthy at the commencement of the insured voyage or, if the voyage is carried out in stages, at the commencement of each stage of the voyage. To be seaworthy, the ship must be reasonably fit in all respects to encounter the ordinary perils of the contemplated voyage, properly crewed, fuelled and provisioned, and with all its equipment in proper working order. Cargo policies waive breach of the warranty except where the insured or their servants are privy to the unseaworthiness. Breach of the warranty is not excused in a hull voyage policy, literal compliance therewith being required.

Although there is no warranty of seaworthiness in a hull time policy, claims arising from unseaworthiness may be prejudiced if the ship sails in an unseaworthy condition with the knowledge of the insured.

An additional person that can be contacted regarding marine insurance.

An insurance-like strategy for handling one's own exposures to loss supported by the financial wherewithal to meet expected losses. Not to be confused with a decision to forego insurance.

That portion of pure risk an insured undertakes to handle on his or her own. A deductible is a form of self-insured retention.

A policy benefit of claim payment.

The currency that a covered claim would be paid in or the same as Premium Currency.

An underwriter's representative who is authorized to settle claims.

The date on which a shipment begins.

The type of shipment being made (e.g. FCL, LCL, RoRo, etc.)

A summary-type bill of lading which does not incorporate all obligations and responsibilities of both parties. Unless familiar with the carrier's tariff, the shipper should request a full bill of lading.

See CANCELLATION.

""One Off"" insurance for those clients who require transit cover on an infrequent basis.

A bill of lading naming a specific party as the consignee. It is non-negotiable and only the named party can take delivery of the cargo.

Limited to damage caused to insured property by strikers, locked-out workers and persons involved in a labor dispute. It does not include loss or expense incurred as a result of strikes.

The right of the underwriter to step into the shoes of the insured, following payment of a claim, to recover the payment from a third party responsible for the loss. Subrogation is limited to the amount of the claim.

A marine insurance clause comparable to REMOVAL in property insurance.

Charges incurred by an insured in averting or diminishing a loss. They are recoverable in addition to the full sum insured.

Additional fees that may be charged by governmental bodies for purchasing insurance.

Charges that may be required by the government for the purchase of insurance.

The period of time a policy or bond is issued for.

The complete insured value of a shipment including duty, advance and freight charges.

To transfer from one ship or conveyance to another for further transit.

Occurs when an item is insured for less than its Replacement Value at Destination, often triggering a Co-Insurance clause.

A company employee who decides whether or not the company should assume a particular risk.

The process of selecting risks for insurance and determining in what amounts and on what terms the insurance company will accept the risk.

A means of identifying a specific insurance certificate as valid.

A basic principle of insurance. Mutual trust in negotiating an insurance contract. The insured and their broker must disclose and truly represent every material circumstance to the underwriter before acceptance of the risk. A breach of good faith entitles the underwriter to void the contract.

Something

A bill of lading issued by the carrier that indicates the amount the shipper has declared as the value of the merchandise. The carrier will be liable for this amount in the event he is found responsible for loss or damage to the merchandise.

Same as Ad Valorem and Full Value Declared Bill of Lading.

A complete listing of all household goods and their value for insurance purposes.

A term used to describe a policy contract that is completely free of all legal effect.

Indicates that an insurance certificate is no longer valid.

A term describing why insurance certificate is invalid.

Where the underwriter has the right to void a policy (e.g., in the event of a breach of good faith), the policy is termed ""voidable.""

Specific coverage purchased to apply in case of war.

A location where goods are stored.

Where a Warehouse or Exhibition is located.

Defines the responsibilities and liabilities of air carriers transporting merchandise in international trade.

A bill of lading issued by a carrier showing the merchandise to be transported and shipping instructions. Airlines and truckers usually use it.

A term describing consumer domestic electrical appliances e.g. fridge, washing machines.

Offers slightly broader cover than F.P.A. with respect to partial losses by perils of the sea, which are recoverable if the loss reaches a certain percentage of the insured value.

Occasionally claims may be paid which the underwriter feels are not actually covered by the policy. Such payments are ""without prejudice"" and are not to be treated as a precedent for future similar claims. Also a term used to indicate that a report or opinion is objective and unbiased to any interested party involved.

A type of insurance providing hull coverage and liability insurance on pleasure boats.

An international agreement which codifies the laws upon which General Average losses are settled.