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.