Risk arising out of the use of a special type, such as a mobile digger, as a tool of trade, i.e. used for its intended function, digging, lifting etc. This risk is distinguished from the road risk necessitating compulsory third party motor insurance. Tool of trade risks are of a third party nature, e.g. liability for damage to underground cables, and insurable under commercial motor, public liability or engineering insurances.

London’s second largest fire (1861) is a landmark in the development of fire insurance. It highlighted inadequacies in both the method of pricing fire insurance and fire-fighting arrangements. Differential rates of charges were introduced to penalise unsatisfactory features and reward favourable ones.

Drop down cover means the unexhausted limit of the top layer of excess of loss cover drops down to a stated lower layer(s) to respond to further losses when that layer is exhausted. The reinsured uses a back up policy to cover the risk of the top layer itself being exhausted by an earlier loss. The risk can be mitigated by not combining too many layers in one top and drop arrangement when the total amount of cover is limited. Top and drop may be whole account or class specific. Dropping to the bottom of the programme is termed ‘cascade’. Top and step is a variation, the top layer only drops to reinstate the immediate underlying layer.

A major disaster that alerted all countries to the risks and dangers of oil pollution. On 18 March 1967 the Torrey Canyon (a Liberian oil tanker) went aground 24 kilometres north east of the Scilly Isles liberating her cargo of crude oil. On 24 March 1967 there was a 64 kilometre long oil slick with an average width of 16 kilometres off Lands End. The Merchant Shipping (Oil Pollution) Act 1971 was passed in order to make oil pollution insurance compulsory for certain tankers.

UK: a civil breach of a personal duty owed to one’s fellow citizens in general, as opposed to breach of contract; the injured person has a potential right to damages from the wrongdoer (the tortfeasor).
***
US: A civil or private wrong giving rise to legal liability.
***
A civil wrong arising out of a breach of some duty which leads to a civil cause of action and for which damages or compensation are recoverable. The Law of Tort imposes a duty on each person to so regulate his actions and behavior as not to cause injury to other persons or damage to their property. The elements of a tort are (i) a legally protected right (ii) the wrongful invasion of that right and (iii) damages as a proximate or direct result of that invasion. There are two basic types of torts. First are those torts, which involve injury to the person and the other are those torts that cause injury to property. The following represent torts that cause injury to the person: Assault : It is unlawfully touching or perpetrating bodily harm to a person by another. Battery : This tort is often used in conjunction with Assault and means the actual physical striking of another. Invasion of Privacy : This occurs when an individual’s privacy is either obstructed or invaded by another party. Defamation of Character : It can occur either through the written word (libel) or the spoken word (standard). False Arrest : This usually takes place when an individual is wrongly accused of a crime. For example a person is arrested for shoplifting but is found innocent. The injured party could file a false arrest action against the retailer. Libel : It is publication, writing or broadcast of false statement in a permanent form designed to damage the reputation of another person.Slander : It is also communication of false information similar to libel but in a verbal form.Of the five torts that involve injury to the person Assault and Battery cannot be insured and are excluded from liabilities policies. The other three can be insured under Personal Injury Liability coverage. The following represent torts that cause injury to property : Trespass : A tort which injures property. However, the act of trespassing must be malicious. An unintentional trespass of another’s property is not considered a serious offense. Conversion : Is taking of property of another as one’s own while knowing it does not belong to you. An individual takes a friend’s wall clock home to repair it and then rather than returning it places the clock on his own wall. The “repairman” has converted the clock to his own use.Tort and Contract, Distinction : Contract is an agreement enforceable at law based upon the consent of the parties thereof. In other words, a contract requires Privity between the parties, whereas in ‘tort’ not such Privity is needed. In ‘tort’ the duty that is broken is imposed by the law applicable to the entire society, whereas in a contract this duty arises out of agreement between the parties and applies to definite person or persons.
***
US: A civil wrong, other than a breach of contract, for which a court of law will afford legal relief, i.e. harming another by an act of negligence in driving an auto.
***
A wrong for which a civil (as opposed to criminal) action can be brought. Many tort claims arise from negligence.
***
MEDICAL, US: Legal wrong committed to an individual or to property that results in injury or damage on which a civil action can be based.
***
UK: Wrongful act, apart from breach of contract, that causes damage or harm to others for which compensation or other remedies may be obtained in a civil action. Negligence and nuisance are common torts.