Insurable interest of a consignee who has paid freight on goods when delivered over the ship’s rail but where the goods remain at risk until arriving at the final destination.

The insurance of the freight earned by shipowners. Shipowners usually insure freight for 12 months by fixing an amount that could be earned on any one round voyage. Bill of lading freight is normally paid in advance and added to the value of the goods by the cargo owner. The insurable value of freight is the gross value of freight receivable by the shipowner plus the cost of insurance. See also FREIGHT; FREIGHT COLLISION CLAUSE.

Clause 22 of the International Hull Clauses (11/2002) under which the insurer waives his right to freight earned or to be earned by a ship that is the subject of a constructive total loss claim. See ABANDONMENT.

A type of loss that combines high probability with low impact, the predictable nature of which means that it can usually be assumed and managed, e.g. shoplifting, minor mechanical breakdowns.

Cargo damaged by fresh water without the operation of a maritime peril. This risk, together with other extraneous risks such as damage by other cargo, hooks, oils and sweat may added to the policy when governed by Institute Cargo Clause (B) or (C). Clause (A), ‘all risks, is already wide enough to embrace the risk. The freshwater loss/damage must be fortuitous, happening by reason of some external cause.