A warranty that is not expressed in the policy specifically but which is understood by both parties to be incorporated in the insurance contract.

Additions or changes made by a lessee, at his own cost, to a building which he is occupying which enhances its value. These become part of the realty and require special insurance consideration.

An abbreviation referring to goods being carried on deck or under deck.

A legal term referring to legal action against an individual.

A legal term referring to an action against an object or thing.

A legal action outside a contract; a third party legal liability action is an example.

Insurance on which the premiums are being paid or have been fully paid.

Packing that is not adequate to withstand the normal hazards to be encountered by cargo in a marine transit.

To restore the victim of a loss, in whole or in part, by payment, repair, or replacement.

Loss resulting from a peril, but not caused directly and immediately thereby. For example: Loss of property due to fire is a direct loss, while the loss of rental income as the result of the fire would be an indirect loss.

A quality in the nature of goods which results in inevitable loss of, or damage to, the goods in certain circumstances.

A deposit premium. A premium paid at inception of the insurance with intention of adjustment to correct the premium later.

A branch of the insurance business which developed from the insuring of shipments which did not involve ocean voyages. Also known as ‘Goods in Transit’ insurance.

Independent checking on facts about an applicant or claimant, usually by a commercial inspection agency.

The standard Institute Cargo Clauses incorporate a clause which excludes any loss caused by insufficiency of packing or preparation of insured goods for transit.

Acceptability of an applicant for insurance to the Insurance Company.

This term means that the proposer must stand to lose something if the property at risk is lost or damaged, or stands to gain by its continued existence or safety.

A formal social device for reducing risk by transferring the risks of several individual entities to an Insurer. The Insurer agrees, for a consideration, to assume, to a specified extent, the losses suffered by the Insured.

Legal document issued to the Insured, setting out the terms of the contract of insurance.

Insurance is about spreading of risk. Insurance works only because many policyholders pool their risks of loss and transfer portions of those risks to an insurance company. The insurance company, having accepted potential losses from many policyholders, is able to charge an affordable premium to each policyholder based on the probability that only a few of the potential losses will occur and must be paid. Thus, by pooling risks together through an insurance company, insureds can insure their risks at a reasonable price, which would otherwise not be possible if the risks of all insureds had not been pooled together through an insurance company.

The person (or persons) whose risk of financial loss from an Insured peril is protected by the policy. Sometimes called the “policyholder”.

A cause of loss which may be specifically expressed in the policy or be embraced in a general description, such as “all risks”. A peril which is not embraced within the policy conditions is termed an ‘uninsured’ peril.

The Insurance Company.

Documentary evidence of the sale contract and price of goods.