Chapter 3 - main classes of business written in the London Market Flashcards
What are the vessels covered under Hull and yacht/recreational vessel insurance?
Sailing vessels
Motor vessels
Inland vessels - e.g. canal boats
Commercial vessel insurance also covers:
Cargo vessels
Cruise/passenger vessels
Specialist vessels - e.g. survey ships, drilling ships
What is first party insurance/ short-tail insurance?
physical loss or damage type of insurance, common element covered by marine hull insurance is damage to the insured ship.
What is the special marine term for physical damage to insured property?
Particular average
What does maritime law state about collisions between vessels?
Each side has to pay damages to the other ship that relate to the share of the blame, being able to make a claim for this price with their hull insurers, in addition to any damages to their own vessel
What is Builder’s risk insurance?
Provides combined physical damage and liability cover where the insureds can be just the purchaser or a combination of the purchaser and the build yard.
What does loss of earnings insurance cover?
When vessels can’t be used for some reason (such as physical damage) insurers pay out to cover any potential loss of earnings that the vessel would have earned if it is covered.
What is cargo insurance (marine)?
insurance that covers physical damage to the goods in transit but not liabilities for damage to persons or property from the cargo
What does stock throughput insurance cover?
end-to-end product, combining a transit policy with storage policies removing any danger of gaps in coverage
What is Jeweller’s block insurance?
Covers the jewellery trade, often set up as a package covering many different property and liability type risks and cover all aspects of the business. Can also be written in non-marine markets.
What does Specie insurance cover?
loose gemstones
precious metals
valuable documents
What does satellite pre-launch insurance cover?
satellites moving from the manufacturing facility to the launch pad
Where can cash in transit be written and what can it cover?
in the non-marine and cargo market
covers movement between banks and premises, with UW creating strict policies such as varying routes and armed truck crews to minimise potential theft
What policies are excluded from the main hull, cargo and marine liability policies but marine versions are commonly available in london markets?
War insurance - in marine covers war and civil war type risks, together with captures and seizures, but piracy is specifically not included
Strikes insurance - covers both strikes and damage caused by terrorists or those acting from a political or religious motive
What is marine liabilities?
insurance that covers any legal liabilities incurred by injuring someone else, or their property. This is third party insurance and long-tail
Who are the parties who should consider purchasing marine liability?
Vessel owners/operators
Port authorities
Shipbuilders/ship repairers
Marina Owners
What is political risks insurance (PRI)?
Protection against inherent or highly unpredictable political perils which can have a significant impact on a given corporation’s assets, investments and trades in second and third-world countries
it helps to foster trade and stability within emerging economies and markets
What are the 3 phases that offshore energy insurance can be split into?
Exploration - oil and gas is searched for using mobile drilling rigs, covers physical and liability
Construction - constructing a more permanent rig to remain on site. Covers the same as exploration, throughout the whole time of construction
Operational - additional risks such as war and terrorism as well as physical and liability are considered.
What are the features of property insurance?
Industrial buildings - can also cover machinery, fixtures and fittings as well as raw materials
Indemnification also includes the option for reinstatement
What other types of insurance fall under the category of property but should be reviewed seperately?
Stock insurance
Theft insurance
Glass insurance
Goods in transit insurance
