Chapter 3- COBs in London Market Flashcards
First party insurance
Any damage to insured property
Referred to as particular average
Each side has to pay for each other’s ship
But can claim back the money from hull insurance after excess
Builders risk
Insurance against time building and cost
Loss of earnings ship
14 day waiting period, 150 day indemnity
If damage prevents income
Must be market or business risk instead
Difference between cargo and goods
Cargo physical items, not storage
Goods cover for person or organisation moving them
Jewellers block insurance
Between trade shows or jewellers
Physical loss or damage
Satellite pre launch insurance
Off risk when ignited
Aggregation of insured items likely, same place
War and strikes insurance
Can cancel and immediately reinstate
Available as the ship is constantly moving between areas, otherwise would be uninsurable
P and I marine liabilities
Injuring someone else or property
Crew, visitors, pollution,
Also purchased by ports
Political risks
Restrictions of hostile government actions
Asset risks such as CEND CCP
Frustration risks such as non payment and non delivery
Alternative to slow export credit schemes
Offshore energy
Upstream
Exploration Construction of rigs Operational physical and liability War risks Windstorm risks Lack of mobility
Property insurance
Includes reinstatement
Stock, theft, glass, goods in transit (non marine)
Percuniary insurance
Money- cash in transit
Fidelity guarantee- against employee fraud
Construction insurance (percuniary)
Contractors all risks- by contractor for subcontractor
Erection all risks- machinery, combines 3rd party and bodily, adage and liability
Downstream energy
Onshore
Refining elements
Midstream is pipelines
Business interruption
Contingent business interruption- covers loss of power etc.
Advanced loss of profits ALOP- additional cover on CAR and EAR to cover delay of materials or damage
Casualty (non marine liability)
Workers compensation Public liability- e.g. Riding act Professional liability Motor- not London market General liability- e.g. Advertising injury Products liability
Bloodstock
Horses, farms
Death or illness and future offspring
Contingency insurance
Event cancellation Weather Prize indemnity- large payout Death and disgrace Over redemption of offers
Personal accident
No indemnity, as no value
Accident, sickness, unemployment cover
Death in service
Kidnap and ransom
Covers payout, medical, specialist team
Secret insurance
Covered in marine for pirates
Intellectual property insurance
Rights to inventions, trademarks, copyright
Legal cost of defending
Aviation- physical damage
Construction, propulsion, experience of pilot
Take off, flying , landing
Aviation liability
Passengers,
Third party- baggage handler etc
Product related, fuel, food etc
Aviation loss of license
Pilot failing medical
Personal replacement income
Preventing trade
Airport operator policy
Premises liability
Products liability
Hangar keepers
Advantages of reinsurance
Increases capacity Net position = gross - reinsurance Smooths peaks and troughs New COBs Protecting a portfolio- facultative /treaty New territories
Captive insurers
Takes risk from parent
Not impacted by premium increases
Mutual insurers
Like minded individuals forming insurance pool, often against certain COBs
