First layer of an excess of loss treaty above the reinsured’s retention. The attachment point is relatively low in order to accommodate relatively frequent claims to protect the reinsured’s normal daily exposure on the basis of any one event or risk. Premiums are generally based on prior years’ loss experience calculated on an automatic scale. Compare with buffer layer and catastrophe layer.

Retention and cover apply to the sum of all losses from the same event; unlike a catastrophe excess of loss there is no two risk warranty and the deductible is low enough to be triggered by a single risk.

Deductible and cover are applied individually for each risk regardless of whether losses are caused by a single event.

Credit insurance protecting a manufacturer who has committed resources to enter into contracts with suppliers against losses due to default by the prospective customer.

A Lloyd’s underwriter principally occupied with the conduct of business at Lloyd’s by working for a Lloyd’s broker or underwriting agent.
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A member who occupies himself principally with the conduct of business at Lloyd’s by a Lloyd’s broker or underwriting agent, or a member who has retired but who immediately before his retirement occupied himself in this way.

Regulations, imposing duties on employers and those in control of workplaces (mining and construction sites excepted), aimed at: (a) health and safety in the workplace covering the environment in which employees are expected to work (ventilation, temperatures etc.); (b) design and maintenance of the premises (condition of floors, traffic routes, etc.); and (c) welfare facilities. The Regulations apply to all parts of the workplace including outdoor workspace. A breach of the Regulations is criminal and also provides the basis for a civil action.

An engineering insurance relevant to businesses producing manufactured goods with installed plant and machinery which may, along with the manufactured goods, suffer accidental damage in the factory. The property is insured against damage following accidental external impact, including falling, toppling, overturning or dropping at the location. The policy usually extends to cover customers’ property undergoing repair or renovation and, in certain circumstances, loading and transit cover in respect of new products may be included. The policy carries an excess and exclusions relate to fire and additional perils, theft, faulty workmanship, electrical and mechanical breakdown, loading for despatch, the initial installation or final removal (these are insured as transit risks).

A leading provider of Internet-based markets for international insurance, reinsurance and alternative risk transfer (ART). In 1999, WIRE launched Artemis, a portal site, acting as a repository for news and information for the ART market of which weather trading is a key part.

An owner-controlled insurance programme covering all liability interests in a large construction project. The cover is arranged by the owner (the principal) whose interest is protected as well as those of contractors, sub-contractors, suppliers, architects, etc. The intention is to reduce overall insurance costs. See PRINCIPAL’S COVER.