Main classes of insurance written in the London Market Flashcards
What is marine insurance?
Generally insurance related to the sea.
Does extend policies to cover perils not to do with the sea.
What is the marine version of Business Interruption (BI) insurance?
Loss of earnings insurance.
- e.g. when the vessel cannot carry passengers, transport cargo, hire vessel to others.
- Max indemnity for loss of earnings insurance calculated by info provided by the insured.
What is first party insurance in marine?
Damage to the insured ship which makes this a physical loss.
What is cargo insurance?
Coverage for physical damage to cargo.
Does not cover liabilities for the cargo damaging any persons or their property.
What is cargo and goods in transit insurance?
Liability insurance for the person or organisation moving the items around.
What is ‘stock throughput’ insurance?
Combines a transit policy with storage policies thus removing the danger of gaps in coverage between a freestanding storage policy.
Benefit goods both moving and being held in storage for a significant amount of time.
Generally written in the marine market.
What other areas are covered under marine insurance?
- specie insurance
- jeweler’s block insurance
- fine art insurance
- political risks insurance
- war and strikes insurance
- cash in transit insurance
- goods in transit insurance
Name some marine third-party liabilities.
- Damage to other people’s property by the vessel colliding with them
- Pollution by escape of cargo, wastewater, or the vessel’s fuel (oil spill)
- Marina owners
- Ship builders/ship repairs
What is another word for ‘offshore’ and ‘onshore’ energy?
‘offshore’ = (‘upstream’)
‘onshore’ = (‘downstream’)
What does ‘offshore’ energy insurance cover?
The extraction of oil and gas under the sea bed.
Hence, ‘upstream’ = extracting oil and gas up out of the ground.
Hence, it is covered under the marine market.
Name the 3 phases of ‘offshore’ energy?
(ECO)
1. exploration
2. construction
3. operational
What markets operate ‘offshore’ and ‘onshore’ energy?
Offshore = marine
Onshore = non-marine
What does ‘onshore’ energy insurance cover?
Onshore (downstream) energy is the product preparation and usage of the extracted materials.
E.g. manufacturing, refining, wholesale and retail.
What is the difference between ‘offshore’ and ‘onshore’ energy?
Offshore = is the extraction of oil and gas.
Onshore = the preparation and usage of oil and gas.
What are pecuniary insurances?
Insurances covering monetary loss rather than physical loss or damage
Name some non-marine liability insurances?
- employer’s liability
- public liability
- professional liability
- motor liability
- general liability
What does ALOP and DSU stand for? And what do they do?
ALOP = advanced loss of profits insurance
DSU = delay in start up insurance
Insures risks of loss of profit should projects overrun or not be completed on time.
What is Aviation insurance?
Physical damage insurance for all types of aircraft. Does not include wear and tear.
Name some aviation liabilities.
- passengers (only while on plane)
- Third parties other than passengers (bag handlers)
- Products related liabilities (illness from plane food)
What does a ‘short tail’ class of insurance mean?
Short-tail classes of insurance have a short time lag between the policy period and the
final claims being concluded.
What does a ‘long tail’ class of insurance mean?
Long-tail classes have a longer time lag between the policy period and the final claims
being concluded.
Are personal accident policies policies of indemnity?
NO. Personal accident policies are benefit policies. (cannot be indemnified)
