Risks attaching to a business as a result of dependencies on supplies from, or sales to, outside enitities. Loss of trade may be due to occurrences, e.g. fires, at the premises of customers and/or suppliers. Risk man agement involves a scrutiny of external dependencies and internal dependencies. Business interruption policies can extend to cover loss of trade due to damage occurring at the premises of customers and/or suppliers, utility suppliers, loss of attraction, etc.

Insurer whose head office is located outside the UK and other than an EEA insurer, a Swiss general insurer or an insurer subject to special rules.

Bodily injury, for personal accident policy purposes, must, inter alia, be caused by ‘external and visible’ means. This is to make it clear that the bodily injury must be due to some outside event clearly visible as distinct from internal physical defects – the words are used as the antithesis of ‘internal means. Exceptions to this strict meaning arise in connection with the inhalation of gas or the accidental taking of poison.

A Lloyd’s underwriter who does not fall within the definition of a working member.
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A member who is not a working member or a nominated member.

an underwriting member of Lloyd’s who plays no active part in the underwriting (contrast Active Underwriter).

Occurs where a pension sharing order has been made and the former spouse is not able to make an internal transfer to the members scheme because dual membership is not permitted. Consequently an external transfer must be applied to the pension credit.

Damage caused by water and other extinguishing agents used to extinguish and contain fires. Such damage is the natural and probable consequence of the fire and so is a part of the fire damage.

Marine insurance term referring to the expenses incurred by the insured in proving a loss, e.g. survey fees, auction or sale charges. The insurer pays them only if the claim is admitted. However, where a survey is carried out on the instructions of the insurer, e.g. by the Salvage Association, this will always be paid by the insurer.

A peril of the sea. Heavy weather may be normal in certain waters and should therefore be anticipated and guarded against. They are a certainty rather than a risk. For example, storms are a daily occurrence in the Strait of Magellan around the tip of South America. When they are of exceptional severity that could not have been anticipated they become a peril of the sea and therefore insurable.

This indicates that the price of the goods in a contract of sale is their cost at the factory gate. The purchaser assumes responsibility for the goods from that point and pays all movement costs including insurance. The contract specifies if packing is included.