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Glossary

  • ABANDONMENT

    To forego all rights of ownership of a hull or cargo insurers so as to request a constructive total loss claim.
  • ABS

    American Bureau of Shipping – America’s classification    society that surveys vessels and provides their class, provided the vessel is of the requisite standard, construction, seaworthiness, etc.
  • ACT OF GOD

    A natural event which is not preventable by any human intervention, for example flood, lightning or earthquake. Natural forces that a transportation carrier has no control over and, therefore, cannot be held liable.
  • ADMIRALTY LAW

    The area of the law that specializes in marine ventures.
  • ADVENTURE

    The commercial operation by which a vessel and its cargo are subjected to the hazards of the sea.  The vessel and the cargo together constitute the common venture.
  • AFT

    Near to the rear, or stern, of the vessel.
  • ALL RISKS

    Among the widest forms of insurance coverage which provides all risks of physical loss or damage from any external cause.  Note that this is not “all claims” and there are certain exclusions to the coverage, for example delay or loss of market losses.
  • AMIDSHIPS

    The general area of the middle of the vessel, midway between the bow (front) and the stern (rear).
  • APPROVED MERCHANDISE

    Cargo or goods that are not unreasonably prone to loss or damage, either because of their nature or their packing.
  • AS IS – WHERE IS

    A term under which damaged cargo or a vessel is sold.  The sale will be carried out at the current location of the property and in its current condition, without any warranty as to its quantity or quality.
  • ASSAILING THIEVES

    Entities committing robbery by force – not including theft by the ship’s crew or clandestine/stealth theft or pilferage.
  • ASTERN

    At or towards the stern (rear) of the vessel.
  • AVERAGE

    Loss or damage to the insured property due to the peril(s) contained in the insurance policy and which is not a total loss…..otherwise known as particular average (not to be confused with General Average).
  • AVERAGE CLAUSES

    The Perils Clause contained in the insurance policy which is the basic insured perils covered by the policy.
  • BALLAST

    The heavy substance (often water) that is put into the vessel’s hold (ballast tanks) in order to maintain the correct draft or stability.  A vessel carrying no cargo and only ballast is said to be operating “in ballast”.
  • BARGE

    A type of vessel, often flat-bottomed and open decked, towed or pushed by one or more tugs.  There are self-propelled barges also.
  • BARRATRY

    A criminal, wrongful or fraudulent act willfully carried out by the vessel’s master or crew and that results in loss or damage to the cargo or vessel.
  • BERTH

    The place where a vessel moors or ties up.
  • BILGE

    The lower part of the vessel’s hull where waste water products collect.
  • BILL OF LADING

    See under “Commercial Set”.
  • BREAKBULK

    Cargo that is not in an intermodal shipping container nor bulk cargo.
  • BRIDGE

    The area of the vessel where the navigational instruments and operating controls are housed and where the vessel is operated.
  • BULKHEAD(S)

    Vertical partitions which separate the vessel’s compartments.
  • BULK SHIPMENTS

    Cargo which is not packaged in any way and which is loaded directly into the vessel’s hold.
  • BUNKERS

    The vessel’s fuel supply.
  • BUOYANCY

    The upward force exerted by a liquid on an object floating on it which is equal to the weight of the liquid displaced, for example, the ability of a vessel to float on the ocean.
  • BURNT

    A vessel is “burnt” provided there is some damage by fire to some structural part of the vessel.
  • C.& F.

    Cost and Freight, being one of the many terms of sale.
  • CARGO

    Goods, merchandise or commodities carried on a vessel and for which freight is charged.  It does not include any stores or provisions for use during the voyage.
  • CARRIAGE OF GOODS BY SEA ACT - COGSA

    The US Statute that governs the acts that a carrier is responsible for and defines the terms used in shipping. The Act provides that a shipowner’s liability to cargo is limited to $500 per shipping package and that there is a 1 year time limit for filing suit against the carrier.  The Act automatically applies to international ocean movements.
  • CERTIFICATE OF INSURANCE

    See under “Commercial Set”.
  • CHARTERER

    An entity who rents, hires or leases a vessel from its owner.
  • CHARTERER’S LIABILITY

    The legal responsibility the charterer of a vessel has to the vessel owner for damages – sometimes the liability is extended to the cargo owners.
  • CHARTER PARTY

    The legal contract setting out the terms for the renting or leasing of a vessel by the charterer.  There are 3 common types of charter:  Time Charter – a contract for a set time period to charter a fully equipped vessel and crew.  Bareboat Charter – a contract to charter a vessel without any equipment, crew, fuel or stores.  Voyage Charter – a contract to charter a fully equipped vessel and crew for a single named voyage. 
  • C.I.F.

    Cost, Insurance and Freight, being one of the many terms of sale.
  • COGSA

    See under “Carriage of Goods by Sea Act”.
  • COLLISION

    A vessel striking another vessel or non-stationary object.
  • COLLISION CLAUSE

    Provides coverage for the shipowner’s 3rd party legal liability for collision damage to another vessel, its freight or cargo, also referred to as the Running Down Clause.
  • COMMERCIAL SET

    A set of 4 documents that represent the goods in the financing of the cargo sales transaction. Commercial Invoice – the bill of sale for the goods sold, and references the goods, the price and the terms of sale.  Bill of Lading – issued by, or on behalf of, the carrier and documents the type and quantity of goods, the shipper, the consignee, the ports of loading and unloading and the vessel.  It is also a receipt for the goods given to the carrier, a document of title to the goods, the contract of carriage between the shipper and carrier and, finally, evidence of the apparent condition of the goods when received by the carrier.  Certificate of Insurance (policy) – issued by, or on behalf of, insurers as evidence of cargo insurance.  Draft – the buyers payment for the goods.
  • COMMON CARRIER

    A transportation carrier who holds themselves out to the general public for the transport of goods over a set route and regular schedule.
  • CONCEALED DAMAGE

    Damage to cargo which appears in sound condition from the outside.
  • CONDEMNATION

    Property captured by a war time enemy was not regarded as an actual total loss until such time as it was condemned by the enemy or one of its allies.  Prior to the property being condemned there was the chance that the property would be released.  The property before condemnation was regarded a constructive total loss, after condemnation an actual total loss.
  • CONSIGNEE

    The entity who is the receiver of the goods, often the buyer.
  • CONSIGNOR

    The entity who ships the goods, often the seller.
  • CONSOLIDATION ENDORSEMENT

    A consolidation endorsement may be included in an open cargo policy to provide coverage on goods while in the course of transit to, and while at, a consolidation point for preparation or consolidation of the goods for export.
  • CONTAINERIZATION

    A system of shipping cargo in large shipping (intermodal) containers that can be easily interchanged between the various modes of transport – trains, trucks and vessels – without handling the cargo multiple times.
  • CONTINGENCY INSURANCE

    An insurance contingent upon the non-performance of another insurance contract.  For example, if the Assured buys or sells cargo on terms whereby the insurance is effected by the other party and that insurance fails to respond for any reason to a covered loss, the contingency insurance would protect the Assured for their interest in the shipment.
  • CONTRABAND

    The illegal or prohibited traffic of goods – goods or merchandise whose importation, exportation or possession is forbidden.
  • CONTRACT OF AFFREIGHTMENT

    The terms of carriage between the carrier of the goods and  the shipper of the goods, often referred to in the Bill of  Lading.
  • CONTRIBUTORY VALUE

    The ocean venture (being the shipowner and all cargo interests) contribute towards claims for a declared General Average on their arrived actual value at destination.  This value is the contributory value for General Average urposes.  See also under “General Average”.
  • CRADLE

    A frame, often wood or metal, intended to support a vessel during building, repairing, lifting, or transport.
  • C.T.L.

    Constructive Total Loss.
  • DECK CARGO

    Cargo carried on deck of the vessel as opposed to within  the hold.
  • DECLARATION

    A form compiled by the policy holder and sent to the insurance broker and/or insurer to report individual shipments insured under the terms and conditions of an open cargo policy.
  • DEDUCTIBLE AVERAGE

    Nearly always these days referred to as 'deductible' only.  It is a monetary amount or a percentage of the insured value which is deducted from the total amount of a covered claim. 
  • DEMURRAGE

    A) A penalty amount charged to a cargo owner for cargo that is held beyond a set time prior to being picked up. B) A penalty amount that a charterer is charged by the shipowner for keeping the vessel at port for longer than as agreed in the Charter Party. C) A penalty amount that a cargo owner is charged by a container company for not returning a container by the contracted due date.
  • DEPRECIATION

    An amount that a property value is decreased by to account for wear, tear, deterioration, obsolescence or damage.
  • DETENTION

    A governmental action to prevent a vessel and/or cargo from leaving a port.
  • DEVIATION

    An unusual departure from the customary or regular way of carrying out the intended voyage insured by the policy that is significant enough to change the risk, e.g. changing the intended route.  Stowing cargo on deck of the vessel when an under deck Bill of Lading was issued is deemed to be a deviation.
  • DIFFERENCE IN CONDITIONS (DIC)

    Is a type of contingency insurance.  Where the policy holder is not obliged to insure the cargo under the terms of sale, a DIC provides coverage for any shortfall in insurance conditions between the policy holderís insurance and the insurance arranged by the other party.
  • DISCHARGE

    Unloading cargo from a vessel.
  • DRAFT

    A) A buyerís form of payment for the cargo.  B) The depth of water a vessel draws.
  • DUE COURSE OF TRANSIT

    The movement of cargo from origin to destination without undue delay.
  • DUE DILIGENCE

    The vessel owner's care and attention to the vessel and crew.
  • DUNNAGE

    Material used within a shipping container or the vesselís hold to properly secure and/or support the cargo during transit.
  • DUTY EXCEPTION

    A governmental tax imposed on imports.  A clause or note on a shipping document, usually the Bill  of Lading or delivery receipt, to indicate any damage to the cargo.
  • F.A.S.

    Free Alongside Ship (or steamer).
  • F.C.& S.

    Free of Capture and Seizure.  Is a clause in a policy which excludes war risks, a companion policy can often be purchased covering war risks, however.
  • F.I.A.

    Full Interest Admitted.  The insurer notes the Assuredís full interest to the extent of the amount of the policy.
  • FIRE

    One of the named perils in the policy.  Includes direct damage caused by flames and indirect damage, such as  smoke or damage occurring while extinguishing the fire.  The meaning does not include spontaneous combustion.
  • F.O.B.

    Free On Board.
  • FORTUITOUS

    An accident or chance happening.
  • FORWARDING CHARGES

    The charges incurred to forward the cargo to its intended destination should the vessel fail to complete the intended voyage.
  • F.P.A.

    Free of Particular Average.  A restricted form of insurance coverage which pays for total losses and for partial losses only in the event the vessel strands, sinks or burns.
  • FRANCHISE

    The percentage of the insured value or a monetary amount which needs to be reached before a covered loss is paid in full.
  • FREE TIME

    The time period cargo is held at the discharge port awaiting pick up, thereafter storage fees may be levied.
  • FREIGHT

    The charge made by the carrier for carrying the cargo.
  • FRUSTRATION CLAUSE

    A clause in the companion war policy that stipulates that there cannot be a loss due to the frustration (termination) of the voyage because of hostilities, there needs to be actual physical loss to the cargo before a loss can be considered.
  • FULL CARGO

    A single kind cargo which takes up the whole cargo space of the vessel, usually in bulk form.
  • GENERAL AVERAGE (GA)

    An old principle of fairness to which all parties to an ocean going venture (vessel, freight and cargo) share losses, according to their proportionate value, necessarily incurred to protect the safety of the venture.
  • GENERAL AVERAGE ADJUSTER

    An expert, duly appointed usually by the shipowner, to handle and adjust the declared General Average, collect security from the various parties and authorize the release of cargo at the appropriate time.
  • GENERAL AVERAGE BOND

    Prepared by the General Average Adjuster, a bond which must be signed by the cargo owner which guarantees that their proportion of the General Average will be paid.   Without this signed bond, the General Average Adjuster will usually not release the cargo.
  • GENERAL AVERAGE DEPOSIT

    A cash deposit which the General Average Adjuster may require from the cargo owner, in addition to the General Average Bond, to meet the full security of the cargo.
  • GENERAL AVERAGE GUARANTEE

    Insurer's written agreement to the General Average Adjuster that the proportion of the finally assessed General Average for their Assured will be paid in full by them. This guarantee is usually accepted by the General Average Adjuster instead of a cash deposit ñ it does not negate the need for a signed General Average Bond.
  • GENERAL AVERAGE SECURITY

    The set of documents that the cargo owner makes available to the General Average Adjuster in order to cancel the vessel ownerís lien on their cargo and obtain the cargoís release.  The General Average Security is made up of the General Average Bond and either the General Average Guarantee or the General Average Deposit.
  • GENERAL CARGO

    The cargo on board a vessel that consists of an, essentially innocuous, variety of merchandise shipped by one or many cargo owners.
  • GOOD FAITH

    Contracts of marine insurance require the principle of utmost good faith by disclosing the complete informationthat is pertinent to the risk and which may possibly influence the underwriterís assessment of the risk.
  • GOODS

    Cargo or merchandise.
  • GROUNDING

    When the vessel comes into contact with the ocean or river bottom, or running ashore.
  • HATCH

    The opening in the vessel which gives access to the hold.
  • HOLD

    The space or compartment beneath the vessel's deck where cargo is stowed.
  • INCHMAREE CLAUSE

    A clause in a marine insurance policy which extends  coverage to include consequential damages caused by explosion, breakdown of electrical machinery, bursting of boilers, breakage of shafts, latent defect in the hull or machinery, accidents in handling cargo, repairer's negligence and crew negligence.  The clause obtained its name from an old English case involving the vessel 'Inchmaree'.
  • INCREASED VALUE INSURANCE (I/V)

    An insurance that provides cover for an increase in the value of the insured property.
  • INDEMNITY

    A reimbursement for a covered loss or damage.
  • INHERENT VICE

    Loss or damage which is brought about by the actual nature of the item insured rather than an actual casualty or loss from an external cause.  For example, fruit will decay by its nature even though there may be no casualty or an external cause.
  • INVOICE

    See under 'Commercial Set'.
  • JASON CLAUSE

    A clause in an ocean Bill of Lading which provides that where a carrier complies with COGSA or other applicable  terms of carriage, carrier must use due diligence to ensure the vessel is seaworthy and properly manned, equipped and supplied.  Any declared General Average would be borneby the vessel, cargo and freight in their proportionate values, even though such General Average may have arisen out of the negligence or errors of the master or crew.  
  • JETTISON & WASHING OVERBOARD

    Jettison is a basic peril in a cargo insurance policy and is the deliberate throwing over the vessel side in the event of an emergency situation.  An example would be the jettison of shipping containers on deck in order to trim the vessel.  Washing overboard is simply the accidental loss of cargo or equipment by the action of the sea or weather.
  • KEEL

    Is the vessel's backbone in the structural member that runs from front to back along the vessel's bottom.
  • KNOT

    A unit of speed commonly used in nautical terms in 1 knot is 1 nautical mile per hour.  One statute mile is 0.868 nautical mile.
  • LANDED VALUE

    The market value of the cargo at the destination on the last day of discharge from the vessel.
  • L.A.S.H.

    Lighter Aboard Ship.  Lighter is another word for barge and is a transportation system whereby the cargo laden lighter is loaded on board the vessel.
  • LATENT DEFECT

    A hidden defect which is not from normal wear and tear and which cannot be identified by a prudent Assured using any customary testing.
  • LEGAL LIABILITY

    A responsibility set by law or contract.
  • LETTER OF CREDIT

    A method of paying for a cargo shipment ñ a fund is established at a bank by the cargo buyer which is located close by to the cargo seller.  The buyer authorizes the seller to draw on the Letter of Credit (L/C or LOC) for the cargo purchased.
  • LIGHTER

    Another term for barge.  Commonly used to load and unload vessels where the vessel cannot dock at the shore due to shallow water.
  • LINER

    A vessel, passenger or cargo, which operates on a regular and defined route.
  • LLOYD'S AGENT

    An agent of underwriters at Lloyd's of London.  Situated in all parts of the world their main duty is to be the eyes and ears of insurers and to protect their interests by acting as a claims agent.
  • LOADLINE

    The line on the vessel's hull which indicates the normal depth when loaded safely with a full cargo, stores and equipment.
  • LOSS OF MARKET

    A scenario where undamaged cargo is no longer required by the consignee on arrival.
  • LOSS OF SPECIE

    Cargo so badly damaged that it no longer can be identified as the cargo shipped.
  • LOST OR NOT LOST

    A situation only occurring in marine insurance whereby underwriters insure a voyage, which may have already commenced, from the original commencement of the voyage irrespective of the fact that the vessel or cargo may already be lost from an insured peril.  It is required, however, that the Assured and underwriters have no knowledge of any loss at the time that the insurance contract is entered into.
  • MANIFEST

    A document prepared by the vessel's master which schedules all cargo kind and quantity on board, by Bill of Lading.
  • MARINE EXTENSION CLAUSE

    A clause in a cargo policy which extends the coverage afforded under the warehouse to warehouse section from the time the cargo leaves the warehouse at the origin point until it arrives at the warehouse at the destination point, regardless of any delay, deviation, forced discharge, transshipment, reshipment or any other interruption of the due course of transit and which is beyond the Assured's control.
  • MARINE INSURANCE ACT

    The English act dated 1906 which sets out marine insurance case law into a code of practice.
  • MASTER

    The captain of the vessel.
  • MASTER'S PROTEST

    The captain's sworn statement of any untoward occurrence during a voyage and which the vessel has no responsibility for.
  • MOORING

    The place where a vessel is tied up or moored in a dock, quay, wharf, buoy, etc.
  • NAMED PERILS POLICY

    A marine insurance policy restricting coverage to the named perils stated in the policy.
  • NEGLIGENCE

    A party not doing what they should, or doing something they should not, either by recklessness or by mistake in the failure to exercise normal care and attention.
  • NO CURE, NO PAY

    A contract of salvage whereby a salvage company only gets paid if the salvage operation is successful.
  • NON-DELIVERY

    Where an entire shipping package fails to arrive at the destination point without any evidence of the reason.
  • ON DECK CARGO

    Cargo that is carried on the vessel deck above the customary cargo hold.
  • OPEN POLICY

    A policy of cargo insurance that is open ended and contains no expiration date and automatically insures cargo at agreed terms, conditions and rates.
  • PALLET

    Also referred to as a skid, it is a flat platform (often wooden) on which loose cargo is stowed for ease of handling.
  • PARTICULAR AVERAGE

    Partial loss of the insured cargo which is caused by a named peril in the policy and which is not a General Average loss.
  • PEAK SEASON ENDORSEMENT

    This endorsement offers more coverage on the insured inventory during peak seasons (for example during the holiday season).  The dates this increased coverage applies are listed on the endorsement.
  • PERILS CLAUSE

    The section of a marine insurance policy that states the risks insured against.
  • PERILS OF THE SEA

    Accidents or casualties that can only happen on the navigable sea ñ stranding, sinking, vessel collision, striking a submerged object or heavy weather.
  • PILFERAGE

    The theft of some of the contents of a shipping package.
  • PILOT

    A navigation specialist who is experienced in navigating the difficult waters of particular ports.
  • PORT OF REFUGE

    A close by port where a vessel can shelter in an emergency.
  • POLICY PROOF OF INTEREST (P.P.I.)

    A policy written on this basis indicates that the policy is proof alone of insurable interest and no further proof need be established for the Assured to collect a covered claim.
  • PRIMA FACIE

    Latin meaning a fact assumed to be factual so far as can be assessed from initial disclosure.
  • PRIVITY

    Knowledge of something.
  • PROMPT NOTICE

    The notification by the Assured to underwriters within a reasonable time period after an occurrence.
  • PROXIMATE CAUSE

    The primary and direct cause of loss and not a remote or incidental cause.
  • RELEASE

    A signed document that acknowledges the receipt of claims monies by the claimant and, further, agrees not to make any future claims relative to the subject matter.
  • RO/RO

    Roll on/roll off.  A specialist vessel equipped with ramps where vehicles can drive onto under their own power. Sometimes referred to as drive on/drive off.
  • SALVAGE

    A) The service provided by another for help in saving a vessel or its cargo in a time of potential disaster.  B) The fee for such a service.  C) The property that is saved.
  • SALVAGE AWARD

    The monetary amount that is given to the salvage company for saving the vessel or its cargo.
  • SALVAGE CHARGE

    The amount that was incurred to save, preserve and reclaim the vessel or cargo after an accident.
  • SALVAGE VALUE

    The sum obtained by selling damaged property.
  • SALVOR

    A third party salvage company who works to save a vessel or cargo from loss.
  • SCUTTLING

    The deliberate sinking of a vessel.
  • SEAWORTHY

    The condition of a vessel which permits it to adequately navigate through the varying conditions of a sea voyage.
  • SHIPPER'S LOAD AND COUNT

    A Bill of Lading notation stating that a shipping container was loaded and counted by the shipper, or their representative, and was not verified by the carrying vessel.
  • STARBOARD

    The opposite of 'port' and is the right hand side of the vessel when facing forward.
  • S.R.& C.C. WARRANTY

    Stands for strikes, riots and civil commotions and is a clause in the policy that excludes all losses caused by strikers, locked out workers or persons taking part in labor disturbances, riots, civil commotions or which are directly caused by persons acting maliciously.  The  coverage is brought back into the policy by including the S.R.& C.C. endorsement. 
  • STEM

    The bow or front part of the vessel.
  • STERN

    The rear end of the vessel.
  • STEVEDORE

    The person that loads and unloads vessels, otherwise known as a longshoreman.
  • STORES

    Items that are carried on board ship for use during the voyage, food is usually the key stores carried.
  • STOWAGE

    The placing of cargo on board the vessel.
  • STRANDING

    The grounding of a vessel.
  • SUBROGATION

    The course of action an insurer may take after the payment of a covered claim whereby the Assured's rights of recovery from a third party are passed over to the insurer.
  • SUBROGATION RECEIPT

    The document signed by the cargo owner which acknowledges the receipt of a claim payment and that assigns the rights of recovery against a third party to the insurer.
  • SUE & LABOR CLAUSE

    A clause in the policy that, in the event of a loss, requires that the Assured acts prudently as if uninsured and takes all reasonable steps to minimize the loss and to safeguard the property from further loss or damage.   Any additional expense incurred by the Assured in complying with this clause is recoverable from insurers, provided the additional expense incurred is reasonable and provided the loss itself is recoverable.
  • SURVEY

    A surveyor's report.
  • SURVEYOR

    An expert or specialist who examines damaged property and documents the cause of loss, as well as the extent of the damage and the repair or replacement options.
  • SWEAT DAMAGE

    Damage to cargo that is caused by condensed water inside a shipping container or vesselís hold is said to be sweat damaged.
  • TARE WEIGHT

    The weight of the empty shipping container and the packing material.
  • TERMS OF SALE

    The terms on which a buyer agrees to purchase goods from a seller and where the title of the goods transfers.
  • TONNAGE

    Gross Tonnage in the total carrying capacity of a vessel, including cargo, equipment, stores and bunkers.  Net Tonnage in the cargo only carrying capacity of a Vessel.
  • T.P.N.D.

    Theft, pilferage and non-delivery.
  • TRADE LOSS

    The amount that is considered normal and customary for a bulk cargo to be lost during a transit.  Also referred to as trade ullage.
  • TRANSSHIPMENT

    Where cargo is transferred from one conveyance to another during the transit process.
  • TUG

    A specialist powerful vessel designed to pull or push a barge or other vessel.
  • UBERRIMAE FIDEI

    Latin - the doctrine of utmost good faith which a marine insurance contract is based on. 
  • UNAPPROVED MERCHANDISE

    Cargo that is not acceptable for coverage on a cargo policy, except on special terms, due to it being particularly susceptible to damage.
  • VALUATION CLAUSE

    The area of a cargo policy which documents the set basis of valuation as agreed by the Assured and underwriters and which establishes the insured value of the goods.
  • WAREHOUSE ENDORSEMENT

    An endorsement that can be added to a cargo policy to extend coverage to include risk while stored, either prior to transit or subsequent to transit.
  • WARRANTY

    There are 2 types of warranty, an expressed warranty and an implied warranty.  An express warranty is a condition that is written into the policy which must be strictly complied with, otherwise the policy may be voided.  An implied warranty is a condition that is not specifically written into the policy but is, nevertheless, a fundamental condition.  For example, the venture is legal.
  • WAR RISKS

    The risks associated with 2 or more belligerent powers taking part in hostilities in a state of war does not necessarily need to have been declared.  War risks are excluded from a cargo insurance policy by way of the F.C.& S. (Free of Capture and Seizure) clause, but may be covered by way of a companion war risks policy.
  • WEAR AND TEAR

    The normal, customary and inevitable wearing away of an item due to age and/or usage.
  • WITHOUT BENEFIT OF SALVAGE

    An agreement in a policy whereby the underwriters, in the event of a loss, will not have any rights to any salvage from the insured property.
  • WITHOUT PREJUDICE

    A claim that is paid on a business decision without prejudice to the policy terms.  This means that insurer's position will not be prejudiced in the event of a future claim.