Form of business interruption policy under which the insurer pays a percentage of the amount paid for the material damage claim. The percentage is based on the relationship between the interruption sum insured and the total fire sum insured. The policy is an excess fire policy not one of indemnity.

Common in the construction industry, the surety protects the project owner by guaranteeing that the contractor will perform his contractual obligations. If the contractor defaults, the project owner (the obligee) calls the upon surety to pay damages (the additional costs of completing the work) up to the amount of the bond. The surety (the obligee) has recourse against the contractor (the principal). The bond may incorporate a payment bond guaranteeing that the contractor will pay sub-contractors and for the contract materials. See MAINTENANCE BOND; RETENTION BOND; STREET WORKS BOND.
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A bond that guarantees the property owner (the obligee) that the contractor with the winning bid on a job will perform as promised and on time.

the Perimeter Guidance manual, one of the FSA’s series of Regulatory Guides.

Refers only to fortuitous accidents or casualties of the seas and does not include the ordinary action of the wind and waves (MIA 1906, Rule for Construction 7). Sinking, foundering of ship at sea, collisions or unintentional stranding are not mentioned but are ‘perils of the sea. Something which may happen at sea, not something that must happen, is the criterion. See PERILS ON THE SEA.

Perils that could occur at sea, e.g. fire, violent theft by persons outside the vessel, but could also occur elsewhere. They are perils added to ‘perils of the sea’ as named perils.

Life and income protection policies policies to which the insurer is committed for a number of years, e.g. 20 years or to age 65. Renewal is at the option of the insured only. The insurer comes off risk only when the agreed period has elapsed.

insurance, on a group or individual basis, having a duration of at least five years and providing a benefit of a fixed amount or proportion of earnings for individuals prevented from working by sickness, accident etc.

Disability benefit payable when an injury leaves the insured working on a reduced basis as opposed to not working at all. The impairment is ongoing. The benefits are a proportion of the permanent total disablement benefit.

The exclusion from a group of lives of persons of a certain type with the result that the mortality rate of the group will differ compared to the population norm. Example: persons suffering from chronic diseases may be excluded from a group of lives acceptable for life insurance at ordinary rates of premium with the result that the insured group will have a lighter mortality rate.