Global Insurance Specialists, LLC

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Abandonment

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

Accident

An unexpected fortuitous event, unforeseen and unintended, not under the control of an insured and resulting in a loss.

Act of God

A flood, an earthquake or other accident or event that is without any human intervention and that could not have been prevented by reasonable care or foresight, but is the result of natural causes (A snowstorm is an Act of God, but driving in one is an act of man).

Actual Cash Value

The sum of money required to pay for damages or lost property, computed on the basis of replacement value less its depreciation by obsolescence or general wear.

Actual Total Loss

The insured property is completely destroyed or the Assured is irretrievably deprived of the insured property or; cargo changes in character so that it is no longer the thing that was insured.

Additional Insured

A person or firm or corporation other than the named insured on a policy or mortgage company named in a mortgagee clause, who is protected against loss by the terms of the policy or mortgage company named in the mortgage clause.

Adjuster

An individual representing the insurance company and acting for the company in working on agreements as to the amount of a loss and the liability of the company in name.

Admiralty Law

Federal law pertaining to claims on navigable waters.

Agreed Amount / Value

A policy provision in which the insured agrees to carry a stated or determined amount of insurance. This amount is specified in the contract as being sufficient to nullify the effect of co-insurance.

All Risk

Insurance against loss or damage to property arising from any fortuitous cause, except such as may be specifically excluded.

American Bureau of Shipping

Establishes construction standards & equipment standards for ships.

Assignment

The passing of beneficial rights from one party to another.

Assigned Risk

A risk which underwriters do not care to insure, but because of state law or otherwise, the insured must be protected and the insurance is therefore handled through the state and assigned to companies.

Assumed Liability

Liability which would not rest upon a person except that he has accepted responsibility by contract expressed or implied. This is also known as contractual liability.

Bailee

A person or concern having possession of property committed in trust from the owner.

Bareboat Charter

The vessel is transferred to another party for a specific period of time; no crew or provisions are included as part of the agreement.

Basic Coverage Form

Any of the commercial or personal insurance property forms which provide basic coverages. These forms generally provide the most limited coverage, which is surpassed by Broad Forms and Special Forms. Basic Form insures against fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicle, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, volcanic action, etc. Broad Form includes breakage of glass, falling objects, weight of snow, ice, or sleet, water damage. Special Form insures against risks of direct physical loss, subject to exclusions.

Bill of Lading

Contract of carriage and receipt for goods, issued by carrier. Describes the kind and quantity of cargo being shipped; the name of the shipper, consignee, ports of leading and discharge, carrying vessel, and other shipping information.

Binder

A binder is an acknowledgement (usually from the agent) that the insurance applied for is in force whether or not the premium settlement has yet been made or the policy issued.

Blanket Insurance

Property-liability insurance that covers more than one type of property in one location in one policy or form instead of under separate items, or one or more types of property at more than one location

Bodily Injury Liability

The liability which may arise from injury or death of another person.

Boiler and Machinery Policy

Insurance against loss due to accidents to boilers, pressure vessels or other machinery including the equipment itself, as well as liability arising out of the accident.

Bond

An obligation of the insurance company to protect one against financial loss caused by acts of another.

Builder's Risk

A marine coverage form specifically designed for buildings in the course of construction.

Buildings and Personal Property Coverage Form

A commercial property coverage form designed to insure most types of commercial property (buildings or contents or both). It is the most frequently used commercial property form, and has replaced the General Property Form, Special Building Form, Special Personal Property Form, and others.

Business Income Coverage Form

A commercial property form providing coverage for indirect losses resulting from property damage, such as loss of business income and extra expenses incurred.

Business Personal Property

Traditionally known as contents, this term actually refers to furniture, fixtures, equipment, machinery, merchandise, materials, and all other personal property owned by the insured and used in the insureds business.

Cargo Insurance

Covers loss or damage to property shipped primarily by water.

Carriage of Goods by Sea Act (COGSA)

US statute adopting the Hague Rules. It applies to bills of lading covering ocean carriage of goods between US ports and foreign ports and sets forth the responsibilities, defenses, and immunities of carriers and vessel owners for loss of or damage to cargo. It provides for a minimum carrier/ship liability of $500 per package (or customary freight unit if applicable) and for a one year time limit from the date of delivery for filing suit against the carrier and ship.

Claim

A formal request for payment of a loss under an insurance contract or bond; the actual amount of the final settlement.

Claimant

One who seeks reimbursement for loss under the terms and conditions of the insurance contract.

Claims-made coverage

A policy providing liability coverage only if a written claim is made during the policy period or any applicable extended reporting period. For example, a claim made in the current reporting year could be charged against the current policy even if the injury or loss occurred many years in the past. If the policy has a retroactive date, an occurrence prior to that date is not covered. (Contrast this with Occurrence Coverage)

Clause

A section or paragraph in an insurance policy that explains, defines, or clarifies the conditions of coverage.

Coinsurance

In property insurance, a clause under which the insured shares in losses to the extent that he is underinsured at the time of loss.

Collision Coverage

Physical damage protection for the insured’s own automobile(s) for damage resulting from a collision with another object or upset.

Collision Liability

Liability for physical damage to another vessel you might hit. Typically included in the hull policy up to the limit of that hull policy.

Commercial General Liability (CGL)

Covers liability exposures that are common to all organizations; a combination of three separate coverages, each with its own insuring agreement and exclusions: general liability, personal injury and advertising injury liability, and medical payments.

Comprehensive Coverage

Traditional name for physical damage coverage for losses by fire, theft, vandalism, falling objects, and various other perils. On Personal Auto Policies this is now called "other than collision" coverage. On commercial forms, it continues to be called "comprehensive coverage."

Consequential Loss

A loss arising indirectly from an insured peril.

Constructive Total Loss

A partial loss of sufficient degree to make the cost of repairing as much or more than the property is worth or is insured for.

Contractual Liability

Liability assumed under any contract or agreement. Coverage is generally limited in liability policies, but in most cases may be provided for an additional premium.

Contributory Value

The value on which a contribution to a general average loss or salvage award is calculated.

Coverage

The scope of protection provided under the contract of insurance.

Coverage Trigger

A mechanism that determines whether a policy covers a particular claim for loss. For example, the difference between the coverage triggers of liability "occurrence" forms and "claims made" forms is that the loss must occur during the policy period in the first case and the claim must be made during the policy period in the second case.

Declaration Page

That page of the insurance policy which lists the insurance company, its address, name of the policyholder, starting and ending dates of coverage, and the actual coverages given in the contract, including the locations and amounts.

Deductible

The amount of loss paid by the policyholder before the insurance policy benefits become payable.

Demurrage

The penalty for holding a ship beyond the contract period.

Depreciation

Decrease in the value of any type of tangible property over a period of time resulting from use, wear, tear, deterioration, and obsolescence.

Disclosure

The duty of the Assured and his broker to tell the Underwriter every material circumstance before acceptance of the risk.

Discovery Period

The time allowed the insured after termination of certain bond and policy provisions to discover that he has sustained a loss which occurred during the period covered by the contract.

Earned Premium

That portion of a premium for which the policy protection has already been given during the now-expired portion of the policy term.

Effective Date

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

Electronic Data Processing Coverage (EDP)

Specialized type of insurance designed to cover computer equipment, data systems, information storage media, and expense or income losses related to EDP losses.

Employers Liability Insurance (EL)

Coverage against common law liability of an employer for accidents to employees, as distinguished from liability imposed by workers compensation law.

Employment Retirement Income Security Act of 1974 (ERISA)

A federal law that established rules and regulations to govern private pension plans. Most self-insured health plans are created under this act.

Endorsement

A form attached to the policy bearing the language necessary to change the terms of the policy to fit special circumstances.

Experience

The loss record of an insured, class of coverage, or of an insurance company.

Experience Rating

Determination of the premium rate for an individual risk, made partially or wholly on the basis of that risk's own past claim experience.

Exposure

State of being subject to the possibility of loss; extent of risk as measured by payroll, gate receipts, area, or otherwise.

Extended Reporting Period

A period allowed for making claims after expiration of a "claims made" liability policy. Also known as a "tail."

Fidelity Bond

A bond which will reimburse an employer for loss up to the amount of the bond, sustained by an employer (the insured) by reason of any dishonest act of an employee (or employees) covered by the bond.

First Named Insured

The first named insured appearing on a commercial policy. The latest forms permit the insurer to satisfy contractual duties by giving notice to the "first" named insured rather than requiring notice to all named insureds.

Flat Cancellation

Cancellation of an insurance policy as of the date of its start with no premium charge.

Freight

Goods moved for another or, the remuneration earned by a ship owner or manager for the carriage of goods; including the profit derived from carrying his own goods.

Garage Keepers Legal Liability

Coverage for losses for which the insured is legally liable, caused by fire or explosion, theft of an entire vehicle, riot and vandalism, collision, and upset to automobiles in his care, custody and control.

Garage Liability Policy

A liability contract designed to provide the owner of a garage operation with the liability protection needed for the special hazards that exist there.

General Aggregate Limit

A Commercial General Liability limit that applies to all damages paid for bodily injury, property damage, personal injury, advertising injury, and medical expenses, except damages included in the products-completed operations hazard.

General Average

A partial loss that must be borne by proportion to all interests in a maritime venture.

General average sacrifice

The deliberate and reasonable sacrifice of part of a vessel or cargo for the purpose of achieving safety when the vessel is in peril.

General Liability Policy

Insurance which is primarily concerned with losses caused by negligent acts and/or omissions resulting in bodily injury and/or property damage on the premises of a business, injury resulting from the use of a product manufactured or distributed by a business, or injury occurring in the general operation of a business.

Good Faith

A basic principle of insurance. The Assured and his 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 avoid the contract. (Proposed changes in law may affect this definition)

Held Covered

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

Hired Automobile

Autos the insured leases, hires, rents or borrows but not autos owned by employees or members of their households.

Hold Harmless Agreement

A contractual arrangement whereby one party assumes the liability inherent in a situation, thereby relieving the other party of responsibility. Such agreements are typically found in contracts like leases. A typical lease may provide that the lessee must "hold harmless' the lessor for any liability from accidents arising out of the premises.

Hull Insurance

Covers partial/total loss of vessels caused by a covered peril, and may also cover insured’s liability for damage of another vessel/cargo from a collision.

Implied Warranty

A warranty that is understood to apply even though it is not in the policy.

Imdemnify

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

Indemnity Bond

A bond which indemnifies the obligee against loss which arises as a result of failure on the part of a principal to perform.

Independent Contractor

One who agrees to perform according to a contract and who is not an employee.

Inherent Vice

A defect or cause of loss arising out of the nature of the goods in question.

Inland Marine Insurance

A branch of the insurance business which developed from the insuring of shipments which did not involve ocean voyages. Exposures eligible for this form of protection are described in the nationwide definition of Marine Insurance. Such diverse properties as bridges, tunnels, jewelry, and furs can now be written under Inland Marine forms.

Insurable Interest

A direct monetary interest in the insured property sufficient to result in monetary loss should the property be damaged or destroyed.

Insurance

A system to protect persons, groups, or businesses against the risks of financial loss by transferring the risks to a large group who agree to share the financial losses in exchange for premium payments.

Insured

The person whose risk is transferred and shared; the party to an insurance agreement whom the insurer agrees to indemnify for losses, provide benefits for, or render services to.

Insurer

The company or group offering protection through the sale of an insurance policy to an insured; the party to an insurance agreement who undertakes to indemnify for losses, provide pecuniary benefits, or render services.

Jones Act

Federal law that provides remedy for maritime workers who suffer a maritime injury while in service to a vessel on navigable waters as a result of the negligence of their employer or a fellow crewmember.

Known Loss

A loss known to one or both parties when a broker and Underwriter are negotiating a placing.

Lease

Contract whereby the owner or user of property (the lessor) agrees to let another party, (the lessee) use the property for a consideration (money or rent).

Leasee

The party to whom a lease is granted.

Lessor

The party who grants a lease to the lessee.

Liability

Broadly, any legally enforceable obligation; a responsibility of one person to another, enforceable in law.

Liability Limits

The sum or sums beyond which a liability insurance company does not protect the insured on a liability policy.

Lien

A word that indicates an encumbrance on property, either for discharge of a duty or the payment of a debt. When a lien exists, the conditions attaching to the issue of an insurance contract require that it be disclosed to the insurance company.

Location Clause

Used in cargo open covers, this limits Underwriters' liability in any one location.

Loss of Use Insurance

Insurance against loss due to the inability to use property because of its damage or destruction.

Loss of Hire Insurance

A type of marine insurance designed to pay for continuing expenses and loss of profits to vessel owners while unable to work after a claim. It provides the means to pay loans, insurance premiums, key clerical staff, captain and essential crew, and other expenses. (Similar to "Business Interruption" or "Loss of Income" policies.)

Loss Payable Clause

Clause in an insurance policy to specifically identify interested parties (the insured, mortgagees, trustees, lien holders, etc.).

Maintanence & Cure

An absolute, “no fault” liability to seamen (captain and crew). Maintenance is living expenses. Cure is medical expenses incurred until maximum medical improvement.

Malicious Damage Clause

A clause published by the Institute of London Underwriters for use in a cargo policy that is subject to the Institute Cargo Clauses (1982) B or C. It adds the risks of malicious acts, vandalism and sabotage to the cargo policy.

Marina Operators Legal Liability

Insures the liability exposures associated with the operation of a marina including those related to the care custody, and control of watercraft. The coverage may include both land and waterborne exposures located at the marina.

Marine General Liability (MGL)

A Comprehensive marine liability policy, usually combined with other forms of marine liability coverage, which covers the operations, contractual liabilities, and products/completed operations liability exposures of maritime operators. This includes bodily injury and property damage liability.

Marine Employers Liability (MEL)

Employers Liability to their employees on or from vessels that fall under Admiralty law (also known as Jones Act Coverage)

Market Value Clause

A provision that may be used in property damage insurance form covering some risks which obligates the insurance company, in the event of loss, to pay the established cash selling price of the destroyed or damaged stock, rather than the actual cash value as provided in the Standard Fire Policy.

Material Fact

Anything affecting an insurance contract significant enough to change the agreement between the insurance company and the policyholder.

Minimum Premium

The smallest premium which an insurance company will accept for writing a particular policy or bond for a designated period.

Misrepresentation

An incorrect statement made about a material fact that, if made deliberately and with intent to deceive, could cause the insurance contract to become null and void.

Mitigate

To make less severe; steps to eliminate further damage after a loss occurs.

Monopolistic State

The states in which Workers Compensation coverage is provided by a state fund, rather than private insurance carriers

Mortgagee

The person who has loaned his money to another and taken the security of the property in exchange.

Mysterious Disappearance

The disappearance of insured property in a mysterious, unexplained manner.

Named Insured

Any person, firm, or corporation, or any member thereof, specifically designated by name as insured(s) in a policy as distinguished from the others who, though unnamed, are protected under some circumstances.

Named Peril Policies

Named Peril Policies specify what perils are insured against, as opposed to so-called all-risk policies.

Negligence

Failure to use the degree of care expected from a reasonable and prudent person.

No Fault Policy

A system in which each driver's auto insurance coverage pays for injuries and damage, no matter who caused the accident.

Notice of Loss

Written notice of a loss to the insurance company as outlined in the conditions of the insurance policy.

Obligee

Broadly, anyone in whose favor an obligation runs. This term is most frequently used in surety bonds, where it refers to the person, firm or corporation protected by the bond.

Obligor

Commonly called principal; one bound by an obligation. Under a bond, strictly speaking, both the principal and the surety are obligors.

Occupancy

In insurance, this term refers to the type and character of the use of property in question.

Occurrence Coverage

A policy providing liability coverage only for injury or loss that occurs during the policy period, regardless of when the claim is actually made.

Open Cover

An agreement whereby the Assured undertakes to declare every item (e.g. shipment, vessel, etc. as appropriate) that comes within the scope of the cover in the order in which the risk attaches. The insurer agrees, at the time of concluding the contract, to accept all valid declarations up to the agreed limit for each declaration. An open cover may be for a fixed period or always open; subject to a cancellation clause.

Package Policy

An insurance policy including two or more lines or types of coverages in the same contract.

Partial Loss

A loss under an insurance policy which does not either (1) completely destroy or render worthless the insured property; or (2) exhaust the insurance applying thereto.

Particular Average

A loss (partial) that is borne by a particular interest (vessel owner/single cargo owner).

Payroll Audit

An examination of the insured's payroll records by a representative of the insurance company to determine the premium due on a policy.

Peril

A term used in the Marine Insurance Act (1906) to denote a hazard. The principle of proximate cause is applied to an insured peril to determine whether or not a loss is recoverable. In modern practice the term "risk" often replaces "peril".

Personal Injury

Injury other than bodily injury arising out of false arrest or detention, malicious prosecution, wrongful entry or eviction, libel or slander, or violation of a person's right to privacy committed other than in the course of advertising, publishing, broadcasting, publishing, or telecasting.

Personal Injury Protection

The formal name usually given to no-fault benefits in states that have enacted mandatory or optional no-fault Automobile Insurance coverages. PIP usually includes benefits for medical expenses, loss of work income, essential services, accidental death and funeral expenses.

Personal Lines

This term is used to refer to insurance for individuals and families such as private passenger automobile or homeowner insurance.

Policy

The written statement of a contract effecting insurance, or certificates thereof, by whatever name called and including all causes, riders, endorsements and papers attached thereto and made part thereof.

Policy Period

The period during which the policy contract affords protection.

Port of Refuge Expenses

General average expenditures that result from the vessel’s entering a port of refuge.

Premises

The particular location of a property or a portion thereof as designated in a policy.

Premium

The payment for an insurance policy, usually paid periodically (annually, semi-annually, quarterly, or monthly).

Prior Damage

Pre-existing damage that occurred prior to the loss in question.

Private Carrier

One who loads the particular cargo at a place designated by the shipper, transports it to the destination named in the contract, and delivers the cargo.

Pro-Rata

Cancellation of an insurance contract by the insurance company, allowing a policyholder a share of the premium relating to the remainder of the time under the contract that bears to the total contract premium.

Products Liability

Provides protection against claims arising out of the use, handling or consumption of a product. Please note that Products Liability excludes coverage for the product itself that caused the damage, and it also excludes warranties and guarantees of the product.

Professional Liability Insurance

Liability insurance to indemnify professionals, doctors, lawyers, architects, etc. for the loss or expense resulting from claim on account of bodily injuries because of any malpractice, error or mistake committed or alleged to have been committed by the insured in his profession.

Proof of Loss

A statement made to the insurance company under oath setting out the basis of an insured's claim under the insurance policy.

Property Damage Insurance

Protection against liability for damage to the property of another not in the care, custody and control of the insured, as distinguished from liability for bodily injury.

Property Insurance

Insurance which indemnifies a person with an interest in physical property for its loss or the loss of its income-producing ability.

Proximate Cause

The immediate and effective cause of loss or damage. It is an unbroken chain of cause and effect between the occurrence of an insured peril or a negligent act and resulting injury or damage.

Rating Bureau

An organization that classifies and promulgates and in some cases compiles data and measures hazards of individual risks in terms of rates in a given territory.

Recovery

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

Reimbursement

Payment of an amount of money related to the amount of loss to or on behalf of the insured upon the occurrence of a defined loss.

Reinstatement

Putting a lapsed policy back in force, or the payment of a claim under some forms of insurance reduces the principal amount of the policy by the amount of the claim. Provision is usually made for a method of reinstating the policy to its original amount.

Reinsurance

A contract of indemnity against liability by which the insurance company procures another insurance to insure against loss or liability by reason of the original insurance; or, insurance by one insurance company of all or part of a risk accepted by it with another insurance company which agrees to reimburse the insurance company for the portion of the claim insured.

Replacement Cost

The cash value representing what it would cost to replace the specific property without deduction for depreciation.

Retroactive Date

Date on a "claims made" liability policy which triggers the beginning of insurance coverage. A retroactive date is not required. If one is shown on a policy, any claim made during the policy period will not be covered if the loss occurred before the retroactive date.

Risk

A fortuity. A term used to designate an insured of a peril insured against. It does not embrace inevitable loss. The term is used to define causes of loss covered by a policy.

Salvage

Property taken over by an insurance company to reduce its loss; Award recoverable by salvors under maritime law.

Salvage Charges

The award due to a salvor for services rendered in saving the insured property.

Salvage Loss

Occurs when the Underwriter agrees to settle a cargo claim by paying the difference between the insured value and the proceeds realized by selling the damaged goods.

Schedule

In Marine policies, a list attached to a slip, open cover, policy or other document, usually detailing the rates of premium for various voyages, interests and risks.

Security

The Underwriters subscribing a risk. The Insurers.

Ship Repairers Legal Liability

Physical damage to vessels, their cargo, and equipment in your care custody and control for the purpose of being repaired, or serviced.

Short-Rate

Cancellation of an insurance contract at the request of the policyholder with a refund of premiums to the policyholder less than would be given under pro-rata consideration.

Solvency

Sufficient assets and income. It is the primary responsibility of a state's insurance department to monitor insurance companies licensed to transact business within their state and make certain that they remain solvent and have the ability to pay the claims of their policyholders.

Stevedores Legal Liability

Stevedores Legal Liability provides coverage for damage to vessels or cargoes in your care, custody, and control while loading/unloading vessels, barges, operating forklifts and cranes, etc. It can also extend to cover cargoes you are holding in storage for a fee.

Stop Gap

The equivalent of Employers Liability insurable in a monopolistic state.

Stop Loss

Any provision in a policy designed to cut off the insurance company's loss at a given point. Aggregate benefits and maximum benefits are an example; a type of reinsurance designed to transfer the loss from the ceding company to the reinsurer at a given point.

Subrogation

The legal process by which an insurance company seeks from a third party who may have caused the loss, recovery of the amount paid to the insured.

Subrogation Waiver

A waiver by the named insured giving up any right of recovery against another party. Normally an insurance policy requires that subrogation (recovery) rights be preserved.

Sue & Labor

Expenses incurred by the Assured or their representatives with the intention of preventing or minimizing a loss for which the Underwriter would have been liable. They do not include expenses incurred in general average or salvage acts; these being recoverable under the policy only as part of the Underwriters' liability for contribution to general average or salvage, if any. Sue and labor charges are recoverable under a policy that incorporates a sue and labor clause (SG policy), or in accordance with the wording of the policy (e.g. under the "duty of the Assured" clause attached to a MAR policy).

Surety

A term loosely used to describe the business or suretyship or bonds. Suretyship is an arrangement whereby one party becomes answerable to a third party for the acts of neglect of a second party; the party in a surety arrangement who holds himself responsible to one person for the acts of another.

Surety Bond

A bond in which the surety agrees to answer to the obligee for the non-performance of the principal (known as the obligor).

Tail

This term has been used to describe both the exposure that exists after expiration of a policy and the coverage that may be purchased to cover that exposure. On "occurrence" forms a claims tail may extend for years after policy expiration, and the losses may be covered. On "claims made" forms tail coverage may be purchased to extend the period for reporting covered claims beyond the normal policy period.

Terminal Operators

Terminal Operators provide legal liability for your operations as a terminal operator, including loading/unloading, cargo, receiving/ storing cargo, and other terminal operations.

Time Charter

Charter of a vessel for a specific period of time.

Total Loss

This can be actual total loss or constructive total loss, where the cost of damage repair exceeds the value of the property insured.

TRIA (Terrorism Risk Insurance Act)

A policy that makes insurance available for losses arising out of certain acts of terrorism. Terrorism is defined as any act certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the US, to be an act of terrorism; to be violent act or an act that is dangerous to human life, property or infrastructure; to have resulted in damage within the US, or outside the US in the case of an air carrier or vessel or the premises of a US Mission; and to have been committed by an individual or individuals as part of an effort to coerce the civilian population of the US or to influence the policy or affect the conduct of the US Government by coercion.

Umbrella Liability Policy

A liability policy designed to provide liability protection above and beyond that provided by standard liability contracts.

Under-Insurance

A condition in which not enough insurance is carried to cover the insurable value, and, especially, to satisfy a coinsurance clause.

Underwriter

A person trained in evaluating risks and determining the rates and coverages that will be used for them.

Underwriting

The process of examining, accepting, or rejecting insurance risks, and classifying those selected in order to charge the proper premium for each.

Uninsured Motorist Coverage

Endorsement to a personal automobile policy that covers an insured involved in a collision with a driver who does not have liability insurance.

USL&H

USL&H Worker Act is a federal law (passed in 1927) that creates a structure of benefits payable to an employee who is injured while working on navigable waters of the US or in adjoining areas customarily used in loading, unloading, repairing, or building a vessel.

Valuable Papers and Records Insurance

An Inland Marine or burglary insurance coverage providing for the replacement of valuable papers, records and forms.

Voyage Charter

Charter of a vessel for specific voyage only.

Waive

To forego; to refrain from insisting upon application of an insurance deductible under specific conditions.

Waiver Clause

A clause which entitles both Underwriter and Assured to take measures to prevent or reduce loss without prejudice to the rights of either party.

Warranty

A statement made on an application for insurance that is warranted to be true in all respects. If untrue in any respect, even though the untruth may not have been known to the person giving the warranty, the contract may be voided whether or not the untruth or inexactness is material to the risk.

Wharfinger Legal Liability

Provides care, custody, and control coverage to the owner/operator of a wharf or pier for the damage to vessels and the vessels' cargo while moored at the owner/operator's facility for which the owner/operator is legally liable.

Wharfinger & Terminal Operators

Both Wharfinger & Terminal operators have a duty to furnish a safe berth, by providing adequate facilities & equipment, keeping watch over vessels/equipment, and taking actions to prevent losses.

Without Benefit Salvage

A term in a marine insurance policy, whereby the Underwriters forgo their subrogation rights. A policy incorporating such a term is deemed to be a gambling policy in law, and is therefore invalid in a court of law.

Without Prejudice

The claim is paid on this occasion, although the Underwriter feels it does not attach to the policy, but this action must not be treated as a precedent for future similar claims.

Worker's Compensation

A schedule of benefits payable to an employee for injury, disability, dismemberment, or death as a result of occupational hazard. The payments are a liability of an employer.