The Marine Insurance Act 1906, s.55, lists several losses for which underwriters are not liable unless the policy otherwise provides. The exclusions are: wilful misconduct; delay; wear and tear, ordinary leakage and breakage, inherent vice or loss caused by rats or vermin; injury to machinery not caused by maritime perils.

The FSA in its decision-making role has statutory powers to issues warning notices and decision notices. As a supervisory authority it is empowered to issue a supervisory notice which may order immediate action on the part of an authorised person or indicate that the matter concerned is open to review.

Occurs when a pension scheme member exercises his legal right to call upon his previous pension scheme to make a transfer payment to a new scheme.

A fidelity guarantee insurance endorsement to extend the policy to cover loss from misappropriation or improper dealing with stockin-trade by the person guaranteed.

Individual ISAS that invest in stocks and shares. For this purpose, stocks and shares include: unit trusts; investment trusts; open ended investment companies; investments on any recognised Stock Exchange; corporate bonds; shares held in a savings-related share option scheme; and gilts.

Fire insurance term in respect of warehouse storage of property in bulk. The risk depends on the nature of the goods and any increase in risk due to the way they are stored. Even nonhazardous goods may be rated-up when stored in bulk.

Group of risks impacting on strategy and long-term plans of the organisation. The risk groups include: market and customer trends; economy/ policitical stability; competition; tactical decisions (investments, mergers, etc.); achieving predicted performance; major catastrophe/incident, including reputational risk; ethics, culture; corporate governance. They demonstrate the need for holistic risk management.

A performance bond that guarantees to a highway authority that a building developer will fulfil his obligation to construct roads on the estate or area of his development. The bond is usually 100 per cent of the construction costs involved.

A demand on physical or mental energy. It can cause a breakdown in a person’s physical or mental health. Employees, whose stress is caused by their employers’ breach of duty, may bring actions in the civil courts for damages or, if linked to dismissal, compensation may be awarded by an employment tribunal. The risks come under employers’ liability insurance and/or employment practices liability insurance. Employers need to include stress in their risk assessment and educate employees in stress management.