LO3: Understanding the main classes of insurance written in the London Market Flashcards
marine insurance
covers things with some relation to the sea but its not always obvious
honor policy
can be lack of clarity surrounding the insurable interest or value of the item being insured for marine. this is the name for such a policy
policy proof of interest
the existence of the policy can be used as proof of the insurable interest
commercial vessel insurance covers (examples)
cargo
cruise/passenger vessel (holiday vessels abd ferries that carry people and vehicles)
specialist vessel (cable layers, drilling ships, ect.)
vessels
sailing (racing to cruises holidays to owner operated)
motor (super vessels to owner operated)
inland (canal boats)
marine hull insurance
covers damage to the ship
- loss/damage type of insurance
- categorised as first party insurance or short tail insurance
tail of insurance
- short (examples)
- long
lag between the insurance incepting and the closure of any claims
short: claim notification is quick and usually finalised quickly
- loss damage policies for hull and propery
long: large lag between the insurance period and the closure of claims related to it
- third party liability
particular average
special term to describe physical damage to the insureds property
in the event of a collision
- each party pays for the others damage in proportion to their fault
- they can then claim back from the hull insurance for collision liabilities
builders risk insurance
- combined physical damage and liability cover
- insured can be the eventual owner or the owner and the building yard
- accounts for the length of time and the increasing value of the ship over that time
loss of earnings insurance
- doesnt cover pure business risks (no work)
- usually requires some physical damage to the vessel
- policy limit/deductible often expressed in days along with maximum payable per day
- separate from business interruption insurance
cargo insurance
physical damage insurance for the item being moved around, not standard to include liability for its damage to the transportation vehicle
- 90-95%of transit done by sea
- covers journerys by road, rail and air as well
- doesnt anticipate insuring storage type risks
goods in transit insurance
primarily liability insurance for the person/company moving the cargo, for their own property but mainly for the cargo
includes releasing the cargo to the wrong party at port
doesnt ususlly include sea carriers
insurer questions
- whats the nature of the insured business?
- what controls are needed?
- does the insured have their own fleet, is it well maintained
can be written by marine or nonmarine
stock throughput insurance
- end to end product
- combines transit and storage policies (no gaps in coverage)
- written by marine
jewellers block insurance
- exclusions
- written by?
package policy that covers many aspects of the business
- manufacture
- trade shows
- exhibitions
- retail
physical damage/loss type insurance but excludes mysterious disappearances and inventory losses
written by marine
specie insurance
covers
- loose gemstones
- precious metals
- valuable documents (covers cost of reconstruction)
damage/loss cover
written by marine
fine art insurance
- covers
- payouts for…
- insureds
covers
- paintings
- sculptors
- installations ( light/sound)
physical loss/damage insurance, static and in transit
pays for repair and/or the loss of value due to the damage
insured: museums, private collectors
written by marine and nonmarine
satellite prelaunch insurance
covers physical loss/damage until the launch insurer takes over, when the engines initially ignite
cash in transit insurance
- risk prevention measures
written by marine and nonmarine covering the movement of money between locations
key risk prevention measures
- varying routes
- mixing up truck crew to avoid inside jobs
- armed truck crew
- gps on trucks
- not leaving vehicle unattended
- safety measure to soak/dye money if someone tries to break in
war and strike insurance
- can include terror
- fairly available in the marine london market
war insurance
cover
- war
- civil war
- captures
- seizes
- damage due to abandoned mines and similar ancient weapons
usually excludes piracy
stike insurances
strikes and damage caused by terrorist (those acting for political/religious motives)
marine third party liability
- examples
- also bought by
examples:
injury or death of crew
injury/death of visitor on board
pollution
damage to cargo
damage to others property through collisions (docks, lighthouses)
removing wreck after crash
using a hired vehicle
bought by:
vessel owners
vessel operators
port authorities
shipbuilders/repairers
marina owners
political risks insurance
- aims
- included
- alternatives
aims to create a more stable environment for investment into developing markets
manage risks arising from the (in)actions or restriction imposed by hostile/unconstitutional governments
includes:
- CEND (confiscation, expropriation, natailisation and deprivation)
- ccp (cental counterparty)
- construction frustration
- war on land
alternatives
- spreading of risk amongst competitors
- state funded export credit scheme
offshore energy insurance
related to oil and gas extraction (upstream)
covers:
exploration phases
construction phases
operational phases
property insurance
- examples
- can cover ?
office building
industrial buildings
pubic buildings
retail units
agricultural buildings
domestic buildings
covers
- damage
- machinery
- fixtures and fittings
- raw materials before processing
- finished product before dispatch
resintatement
available for property but not for marine, means the reconstruction of the property therefore the sum insured should be enough to cover the project with the time kept in mind
stock insurance
covers stock on the insured premises, regular reports of the stock level are made to the insurer
theft insurance
requires forced entry
glass insurance
covers the boarding up of the property
pecuniary insurances
cover monetary losses rather than physical damages
includes:
- money insurance (includes valuable docs)
- fidelity guarantee insurance (fraudulent acts)
- business interruption
construction insurance
usually has multiple parties as the insured
can extend into the maintenance period of the structure (after the hand off) to let snagging element be worked out
types (both combinations of physical damage and liability covers):
- contractor all risks (bought by the main contractor on behalf of all the others)
- erection all risks (bought by the contractor responsible for putting up/installing machinery)
onshore energy
applies to the midstream and downstream (after the oil/gas is extractd), and mining power stations and renewables
midstream = pipelines
downstream = refining and processing
cyber insurance
- definition
- issues
- covers
covers risks related to losses due to use of networks to access online systems and information
issues:
- professional indemnity
- network security failures
- privacy breaches
cover:
- bi
- reputation protection (liasing with customers)
payment of ransom
- practical support
- physical damage
- regulatory investigations
business interruption insurance
- subclasses
replaces lost income after a waiting period
requires loss/damage tot he insured property unless contingent bi (damage to an external party) is included
subclassess
- advanced loss of profits
- delay in startup
casualty
- aka
- examples
nonmarine liabilities
examples:
- employers liability
- public liability
- professional liability (claims against for incorrect advice or negligent activity)
- motor liability
- general liability
- product liability
bloodstock and livestock insurance
for animals (mainly death and illness) used in business
- bloodstock = competitive horses (basic cover can be extended to include infertility)
- livestock = all others
contingency insurance examples
event cancellation
weather-related insurance
prize indemnity
death and disgrace (reshooting of campaign)
over-redemption (offers and promotions)
personal accident insurance examples
personal accident
personal illness/sickness
death in service
kidnap and ransom insurance
- kidnappers demand money
- can also be written in marine with regards to pirates
covers
- medical expenses
- payment of ransom
- providing negotiation team
malicious product tamper, extortion, and product recall insurance
extorters demands money for information or for silence
doesnt mean there is any loss or damage, insured must take action to protect reputation
intellectual property inurance
ip = company/individuals rights to their creation/invesntion
covers the cost of suing/ being sued
aviation physical damage insurance
- aircrafts
private pleasure fixed wing (jet or propellers, stages of interest: take off, flight, landing)
commercial fixed wing
rotary aircraft
gliders (no independent means of propulsion)
mircolights (hang-gliders with small engine)
hot air ballons
drones (unmanned)
aviation liabilities
passengers
third parties other than passengers
product realted
loss of use insurance
like marine loss of earnings or property bi
loss of license insurance
for individuals (air crew and traffic controllers) that have failed medicals, not their fault
will replace personal income
airport operator policies
combine physical damage and liability
- premises liability
- products liability
- hangar-keepers liability (maintenance and storage services, not just a hangar)
