ALL OTHER PERILS AND MISFORTUNES
Phrase in Cargo policy meaning perils of the same nature as those described specifically in the Perils clause
ASSAILING THIEVES
Forcible taking of property but not sneak thievery
AVERAGE
Any partial loss or damage, due to insured perils
AVERAGE AGREEMENT
Document signed by cargo owners by terms of which they agree to pay any General Average contribution properly due so that cargo may be released after a General Average loss has occurred
AVERAGE CLAUSES
Clauses in Cargo policy that determine the amount of Particular Average loss recovery
AVERAGE IRRESPECTIVE OF PERCENTAGE
Broadest "with average" clause. Losses by insured perils are paid regardless of percentage
BARRATRY
Fraudulent, criminal, or wrongful act by ship's captain or crew that causes loss or damage to the ship or cargo
BILL OF LADING
Contract of carriage between shipper and steamship company which is the ship owner's receipt for the goods and is the document of title to them
CARGO WAR RISK POLICY
A separate Cargo policy covering cargo while waterborne only (except at transshipping point, which may be on land or water). Insures against war risks
CERTIFICATE OF INSURANCE OR SPECIAL POLICY
A document prepared by the insured, the producer, or the insurance company to provide evidence of insurance to the buyer or bank for an export/import shipment. The certificate contains an abstract of the more important conditions in the policy
CONSIGNEE
Individual or company to whom cargo is shipped or consigned
CTL (Constructive Total Loss)
An instance in which the cost of recovering and/or repairing damaged goods would, when recovered or repaired, exceed the insured value
DECLARATION
A form filled out by insured and sent to the insurance company when reporting individual shipments coming within the terms of an Open Cargo policy
DEVIATION
A vessel going to some other point or taking some course other than that described in the Bill of Lading
FPAAC (Free of Particular Average, American Conditions)
Average clause that limits recovery of partial losses under the Perils clause to those losses directly resulting from fire, stranding, sinking, or collision of the vessel
FPAEC (Free of Particular Average, English Conditions)
Same as FPAAC, except that partial losses under the Perils clause are fully recoverable if the vessel has been stranded, sunk, burned, been on fire, or in collision, without requiring that the damage actually be caused by one of these perils
GENERAL AVERAGE
Loss resulting from a voluntary sacrifice of any part of the vessel or cargo, or an expenditure to safeguard the vessel and the rest of the cargo. When such a loss occurs, the ship owner and all cargo owners pay it on a pro rata basis
INCHMAREE CLAUSE
(So-called for a famous legal decision involving a vessel of the same name.) Covers losses resulting from a latent defect in the vessel's hull or machinery and losses resulting from errors in navigation or management of the vessel by the master or crew
INVOICE
Document that shows the terms of sale; contains full description of goods, selling price, charges, discounts, etc.
INSURED VALUE
Usually computed by adding the invoice cost, guaranteed freight, other costs, and insurance premium plus a percentage, commonly 10 percent. This usually represents landed value
JETTISON
Voluntary dumping either of cargo or of ship's material or stores overboard, to protect other property from a common danger
LANDED VALUE
Wholesale market value at destination on final day of discharge
MARINE EXTENSION CLAUSE
Cargo policy clause that continues coverage on goods during deviation, delay, re-shipment, and transshipment, or any other variation in normal transit beyond the assured's control
MARINE SURVEYOR
Specialist who determines the nature, extent and cause of loss and/or damage
MASTER'S PROTEST
Sworn statement by captain describing any unusual happening during the voyage
PARTICULAR AVERAGE
Partial loss sustained by goods insured
PERILS OF THE SEA
Hazards from natural forces in or about navigable waters (windstorm, rough weather, etc., but not fire, explosion, etc., which are perils on the sea)
TERMS OF SALE
The following are brief descriptions of the more common Terms of Sale (fully defined in the "American Foreign Trade Definitions of 1941"), setting forth the obligations of the seller and buyer
TERMS OR METHODS OF PAYMENT
If the insured is not paid for any reason, he/she must dispose of the goods and, therefore, still has an insurable interest. Following are the more common terms or methods of payment:
VALUATION CLAUSE
Provides basis for determining insured value of a shipment under the Open Cargo policy
WAR RISK
Insurance against loss or damage to property as a result of war risks
WAREHOUSE TO WAREHOUSE
An export/import policy clause that provides protection from the shipper's warehouse and during ordinary course of transit to the consignee's warehouse