Amendment to the policy, used to add or delete coverage. Also referred to as a “rider.”

Money paid to a ship owner in compensation for delay of a vessel beyond the period allowed in a charter party when loading or discharging. In marine insurance the term is used to denote any loss of hire period incurred by the ship owner.

The insurance premium paid to bind the Insurer to the performance of the contract.

Estimated Maximum Loss

An agreement whereby the Insured is allowed to pay premium by installments.

A loss which is an indirect result of an accident or fire, e.g. food spoiled through breakdown of a refrigerator.

The fraudulent use of money or property which has been entrusted to one’s care.

The portion of a loss that you are required to pay before your insurance coverage will respond. Also known as a SIR: Self-Insured Retention. Deductibles can be used to reduce your physical damage premiums. For example, if you owned a policy with a $200 deductible and you suffered a covered loss totaling $1,000, you would pay the first $200 and the Insurance Company would pay the remaining $800. If the loss were only $200, you would pay the entire amount and the Insurance Company would pay nothing.

A requirement imposed in the contract of insurance by the Insurer, and which must be literally complied with unless it is waived by the Insurer.

The date on which an insurance policy or bond goes into effect, and from which protection is furnished.