A form of insurance covering merchandise held for sale by a retailer that has been used as collateral for a loan. The lending institution, in effect, is insuring its collateral, which is the merchandise “on the floor” of the retailer.
Insurance Encyclopedia
Flotsam
Maritime term meaning wreckage floating on the sea (Merchant Shipping Act 1894).
Flour ‘all risks’ clauses
Marine insurance clause for the insurance of flour as cargo. Cover is in respect of ‘all risks’ whatsoever but excludes damage by weevils, inherent vice, etc.
Flow-Through Cost
Net cost of Insurance (or other product) available from an Agent or broker (or other intermediary) who adds no markup to cover the intermediary’s own costs or profit.
Flue gas explosion
Explosion of gases in boiler flues (i.e. pipes). It is the result of ignition and not of the sudden release of internal pressure as in the case of a steam boiler explosion. The boiler and pressure plant policy can be extended to cover the explosion of gas in the furnaces or flues of the plant. Cover follows the terms of the boiler policy and therefore covers self-damage and the consequences thereof in terms of surrounding property and third party risks.
Flying risks
Term used by personal accident insurers in connection with the risk of accidental bodily injury arising from flying either as a member of the crew of an aircraft or as a fare-paying passenger on a scheduled flight. The former risk is underwritten in the aviation department and the latter is covered under conventional personal accident insurance.
Flywheel Insurance
A specialized coverage for loss caused by flywheel bursting.