The organisation which coordinates the various sectors of the shipping industry, and includes both the London marine market, underwriting hull and cargo business, and the Protection and Indemnity Clubs underwriting shipowners’ liabilities in mutual associations.

Requires all boat owners to have third party cover with a minimum £1 million indemnity on most inland waterways. The British Waterways Authority seeks evidence of insurance before issuing the boat owner’s annual licence to use its waterways.

A document issued by an insurance broker confirming that an insurance has been effected. It warrants to the client that his or her instructions have been carried out, but imposes no liability on an insurer who has not actually entered into any agreement. If the cover note is issued in anticipation of making an agreement that does not materialise the broker will be liable for breach of warranty.

In marine insurance the broker is liable to the insurer for the premium even though not collected from the insured. Consequently, the Marine Insurance Act, s.53(2), grants him a lien, i.e. the right to retain the policy until paid by the insured. The lien is valuable as no claim can be collected without production of the policy; the insured may wish to deposit the policy with his bank, or pass it to another interested party. The lien applies not only to the premium on the policy but the balance of any insurance account due to the broker. The lien has been held to apply in other classes of insurance in respect of the premium but not the balance due on any insurance account.

A variation of ordifacultative reinsurance nary method, whereby a reinsurer agrees in advance to accept reinsurance from a reinsurance broker. The reinsurer becomes obliged to accept a share of any business ceded to it through the broker, who thus acquires a facility for automatic reinsurance.

UK: 1. The commission and fee income received by an insurance broker. Normally commission is received from the insurer, but brokers may also charge fees to their clients. 2. A US term for an insurance broking company, firm or office. 3. The fee paid to a broker who arranges reinsurance cover for a ceding office.
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The business of a broker. Also, the fee/commission paid to a broker who arranges Insurance.
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UK: the commission received by a broker or other intermediary for placing insurance risks.
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The commission that is payable to a broker for placing an insurance or reinsurance contract with an insurer or a reinsurer. Compare fee for service. Although brokerage is payable by the insured as part of the gross premium the amount of brokerage is agreed by the insurer. The insured may request his broker to state the amount of his brokerage on a given placement. Similar considerations apply to reassureds under reinsurances. Sometimes the term brokerage may be used to refer the business of a broker.
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The sum paid to a broker as a commission. This term can also refer to insurance placed with brokers.

A stratum of cover between the upper limit of the primary insurer and the attachment point of the excess or umbrella insurer. The ‘buffer layer’ fills the gap. Example: total policy limit of £10 million is arranged as follows: primary layer = £1 million; buffer layer is £1 million in excess of £1 million and the excess/umbrella layer is £8 million in excess of £2 million. In reinsurance terms the buffer layer sits between the working cover/layer and the catastrophe layer. It absorbs relatively large losses that do not occur annually, but do so with some regularity.
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The buffer layer is the layer of insurance that resides between the primary layer and the excess layer. For example, suppose Marcia wants to purchase a business umbrella liability, but she is required to carry underlying comprehensive general liability limits of at least $500,000. Marcia has only $300,000 liability coverage and her current insurance company will not increase the primary coverage. Marcia either faces a $200,000 gap in coverage or purchases a $200,000 “buffer.”

Policy covering a ship during construction, including launching and trial trips, until delivery to her owners. Construction of small commercial craft, e.g. fishing vessels, work boats, etc., can be insured under an open cover.

Fire insurances are often rated separately for the buildings and contents. The terms ‘building rate’ and ‘contents rate’ have emerged as a result.
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A Fire Insurance term which refers to the rates as buildings rather than as the contents of the building. Refer: “Contents rate.”

UK’s leading centre of expertise on building construction, energy, environment, fire and risk. It provides consultancy, testing and commissioned research services covering all aspects of the built environment and associated industries. BRE makes significant contributions to the development of national and international standards and codes for construction and fire safety. Its sister company, BRE Certification, provides certification to UK, European and international standards as well as CE marking and product approval. (www.bre.co.uk).