Hedge

A conservative strategy used to limit financial loss by effecting a transaction that offsets the underlying position. A hedge correlates with the risk so a profit made on a futures or option contract mitigates the loss on an investment or activity. See WEATHER DERIVATIVES.

Hedging

A kind of Insurance by which risk of a trader is shifted on another trader, similar to speculation and may be used to handle risks not subject to insurance, such as price-change risks.

Height clause

Restrictive endorsement in liability insurance operating as an exclusion or a warranty to regulate the height at which work may be undertaken. For example, a public liability policy may exclude work at heights in excess of 40 feet. Compulsory employers’ liability legislation does not prohibit the use of restrictive trade endorsements. As an alternative the policy may exclude work on particular types of buildings such as blast furnaces.

Held Covered

(i) A risk s said to be held covered when an insurer agrees to insure it temporarily pending completion of insurance arrangements. (ii) A marine insurance policy may provide that some contingency which may or may not arise shall be held covered if it does arise, subject to notice and payment of an additional premium.

Held covered (H/C)

1. Cover granted by marine insurers under the ‘held covered’ clause to protect the insured in circumstances to which the policy does not otherwise apply such as when the vessel navigates in waters not permitted under the Institute Warranties. Cover is conditional upon the insured giving the insurer prompt notice and paying any reasonable additional premium. 2. Insurers may ‘hold covered’ pending completion of the formal arrangements.

Hematology

Branch of internal medicine concerned with the scientific study of blood and blood-forming tissues and with the treatment of diseases and disorders of the blood.