Extended Operational and Trade Vocabulary

Marine Insurance, P&I and Hull Clauses glossary

The hull-and-P&I clause vocabulary: abandonment and acceptance of abandonment, absolute liability under the CLC, accommodation lines, the Act of God exclusion, and the hull-clause and total-loss terms. Grounds each term in the policy clause or the liability regime it belongs to, complementing the broader insurance and claims section.

354 defined terms.

Showing 250 on this page (page 1 of 2).

A

Abandonment: act by which an insured cedes proprietary rights in the insured property to underwriters as a precondition for claiming a constructive total loss.
Absolute Liability: A liability standard, applied under regimes such as the CLC, in which the shipowner is liable for pollution damage regardless of fault, subject to narrow statutory defenses.
Acceptance of Abandonment: The underwriter's affirmative acknowledgment of a notice of abandonment, rarely given in modern practice, that vests title to the wreck in the insurer.
Accommodation Line: business written by an underwriter as a favor to a broker or assured rather than on technical merit.
Act of God: A natural event of such an extraordinary character that human foresight could not have anticipated nor prevented its consequences, sometimes excluded from cover.
Actual Total Loss (ATL): total loss under section 57 of the Marine Insurance Act 1906 where the subject matter is destroyed, so damaged as to cease to be a thing of the kind insured, or irretrievably deprived from the…
Adjuster: see Average Adjuster; the practitioner who calculates general average or particular average claims.
Adjustment: the calculation prepared by an average adjuster apportioning loss between interests.
Admiralty Jurisdiction: Court jurisdiction over maritime claims, often in rem.
Advance freight: Freight paid before cargo delivery, typically on shipment.
Adventure: the marine adventure within section 3 of the Marine Insurance Act 1906.
Agency Agreement: contract between an insurer and an agent setting underwriting authority limits.
Aggregate Limit: maximum payable in respect of all claims in the policy period.
Aggregation Clause: A provision defining the basis on which separate losses are treated as one event for the purpose of deductibles, limits, and reinsurance recoveries.
All risks cover: ICC(A) Institute Cargo Clauses A.
American Club: Common name for the American Steamship Owners Mutual Protection and Indemnity Association, Inc., a New York-based International Group P&I club founded in 1917.
American Institute Hull Clauses (AIHC): standard US hull form last revised June 2, 1977.
Anti-Concurrent Causation: A clause stipulating that a loss is excluded if an excluded peril contributes to it, in any sequence, alongside an insured peril.
Arbitration Clause: Dispute resolution provision in MoA, typically LMAA, SCMA, or SMA.
Asbestos Exclusion: A clause excluding liability arising from asbestos, common in modern hull and liability policies.
Asset Tracking Module (ATM): A vessel data-capture component used by insurers and operators to monitor location, speed, and operational status of insured assets in real time.
Assignment of Policy: transfer of the benefit of a marine policy under section 50 of the Marine Insurance Act 1906.
Assured: the party named in the policy entitled to claim under it.
Attachment of Risk: The moment cover incepts under the policy, defined for cargo by the warehouse-to-warehouse provision in the Institute Cargo Clauses.
Average: Loss apportioned in general or particular average under York-Antwerp Rules.
Average Adjuster: independent professional who prepares general average and complex particular average statements.
Average Bond: A written undertaking by cargo interests to pay their general average contribution once adjusted, given in exchange for delivery of the goods.
Average Guarantee: written undertaking, typically by cargo underwriters, to pay the cargo's general average contribution.

B

Back Letter: A side agreement between assured and broker, or assured and underwriter, varying or supplementing the formal policy terms.
Bailee: party in possession of goods of another, whose liability may be covered by liability insurance.
Barratry: a wrongful act willfully committed by the master or crew to the prejudice of the owner or charterer, an insured peril in traditional hull cover.
Berth Standard of Average: clause limiting cargo damage claims to damage discoverable on outturn at the discharge berth.
Bill of Lading: Receipt, document of title, and evidence of the contract of carriage.
Binder: A short-form confirmation of cover issued before the formal policy, evidencing the underwriter's commitment.
Bipartite Slip: placing slip signed by leading underwriter and broker, the basic Lloyd's contract document.
Blocking and Trapping: A war risks peril covering loss of earnings or detention of a vessel prevented from leaving a port by hostile action.
Blue Card: certificate issued by a P&I club evidencing insurance for liabilities under CLC 1992, Bunker Convention 2001, Wreck Removal Convention 2007, or Athens 2002.
Bordereau: A schedule of risks or claims provided periodically by a coverholder, broker, or reinsured to the underwriter.
Both-to-Blame Collision Clause: bill of lading clause obliging cargo to indemnify the carrying ship against cargo liability paid by the non-carrying ship and recovered from the carrier under US law.
Bottomry: ancient maritime loan secured on the ship, largely obsolete.
Branch Agency: A local presence maintained by a P&I club in a key port, often a wholly owned subsidiary or appointed correspondent.
Breach of Warranty Cover: Mortgagee's cover responding when the owner's policy is avoided for breach of warranty, protecting the lender's interest.
Britannia Steam Ship Insurance Association: An International Group P&I club founded in 1855 and managed by Tindall Riley, one of the oldest mutual clubs.
Broker: intermediary placing risks with underwriters on behalf of the assured.
Bulk Cargo: Loose cargo subject to IMSBC Code; not normally lashed but governed by trimming and stability.
Bumbershoot: a marine umbrella liability policy covering excess marine and non-marine liabilities.
Bunker Convention: The International Convention on Civil Liability for Bunker Oil Pollution Damage 2001, requiring compulsory insurance for vessels over 1,000 GT.
Bunker Pollution Cover: Liability insurance responding to spills of bunker fuel from a non-tanker vessel, typically arranged through a P&I club.
Business Interruption: A category of loss arising from interruption to commercial operations, included in loss of hire and certain extension covers.

C

Cancellation Clause: A charterparty provision permitting the charterer to cancel the fixture if the vessel fails to tender notice of readiness by the cancelling date.
Cargo Insurance: insurance of goods in transit, traditionally written on Institute Cargo Clauses.
Cargo Sue and Labor: The cargo insurer's reimbursement of charges incurred by the assured to avert or minimize an insured loss.
Cargo's Proportion of General Average: amount payable by cargo interests in adjustment of general average.
Certificate of Entry: The document issued by a P&I club evidencing the terms of entry of a vessel for the policy year.
Certificate of Financial Responsibility (COFR): Evidence required by the US Coast Guard under OPA 90 that a vessel has the financial means to meet pollution liabilities in US waters.
Certificate of Insurance: document issued under an open cover evidencing insurance on a specific shipment.
Cesser Clause: Charterparty term ending charterer's liability after cargo loaded, against owner's lien.
Cession: The transfer of risk from a cedant to a reinsurer under a reinsurance contract.
Charterer's Liability Insurance: Cover for liabilities incurred by a charterer to the shipowner, to cargo, and to third parties, typically arranged through a P&I club's charterer's facility.
Charterers' P&I: The class of cover offered by certain International Group clubs and fixed premium providers to time and voyage charterers.
Claim Cooperation Clause: A reinsurance provision requiring the reinsured to cooperate with reinsurers in the handling and settlement of claims.
Claims Made: liability policy responding to claims first notified during the policy period.
Claims Notification Clause: A provision setting the assured's obligations to notify claims and circumstances to underwriters within prescribed periods.
Claims Occurring: An insurance trigger responding to events occurring during the policy period, the standard basis for hull and P&I cover.
Clausing of Bills of Lading: The act of recording observed defects on bills of lading at loading, central to evidencing pre-shipment damage for cargo claims.
CLC: The International Convention on Civil Liability for Oil Pollution Damage 1969, as amended by the 1992 Protocol, governing tanker oil pollution liability.
Co-Insurance: An arrangement in which several insurers each subscribe to a portion of the risk on identical terms, common in Lloyd's slip placements.
Collision Liability Clause: ITC Hulls clause 8 covering three-fourths of collision liability to other vessels and their cargo.
Commodity Trade Cover: Cargo cover written for trading houses on standing portfolios of commodity movements under open covers and binding authorities.
Confidentiality Clause: A market clause obliging parties to keep policy terms and claims information confidential.
Confiscation: The taking of insured property by a government or authority, an insured peril under war risks cover with specific exclusions.
Constructive Total Loss (CTL): total loss under section 60 of the Marine Insurance Act 1906 where actual total loss appears unavoidable or repairs would exceed the repaired value (ITC Hulls 1/10/83 uses insured value).
Container Insurance: Cover for marine and intermodal containers, often written on Institute Container Clauses, including Time and Voyage versions.
Continuous Trading Warranty: A warranty in hull cover that the vessel will trade continuously within defined limits, breach of which suspends cover.
Contract of affreightment: COA, agreement to carry a stated quantity of cargo over a period.
Contributory Value: The value of each interest contributing to general average, used as the basis for computing each party's contribution.
Correspondent: A local agent appointed by a P&I club to attend casualties, provide local advice, and post security in ports worldwide.
Costa Concordia: 2012 cruise ship grounding off Giglio, parbuckled and refloated 2013 to 2014.
Cover Note: broker's confirmation to the assured that cover has been placed pending issue of the policy.
Crew Claims: The category of P&I claims relating to seafarer death, injury, illness, repatriation, and unpaid wages.
Cross Liability Clause: A liability clause treating each insured under a single policy as if separately insured, important for joint venture and charterer covers.
Customs Penalties: Liabilities imposed by customs authorities, covered to the extent permitted under P&I rules.

D

Damaged Value: The market value of damaged cargo or vessel as ascertained for the purpose of computing a partial loss.
Date of Loss: The date assigned to a loss for the purpose of underwriting year allocation, often the date of the casualty rather than the date of claim.
Days of Grace: period allowing late payment of premium without loss of cover, no longer commonly granted in marine.
Declaration: notice to underwriters under an open cover or floating policy specifying the shipment to attach.
Deductible: amount of each claim borne by the assured before the policy responds, also called franchise or excess.
Deepwater Horizon: Transocean semi-submersible lost 2010 at Macondo; 11 fatalities; largest US marine oil spill.
Defense Cover: Cover for the legal costs of pursuing or defending disputes incidental to the operation of the entered vessel, often a separate FD&D class.
Demise charter: Bareboat charter.
Demurrage: Liquidated damages for detention of ship beyond laytime.
Denial of Cover: insurer's refusal to indemnify on grounds of policy terms, breach, or non-disclosure.
Deposit Premium: provisional premium based on estimated exposure, adjusted at year end.
Deviation: Departure from the contractual or geographic voyage; historically a fundamental breach.
Direct Action Statute: A statute, such as Louisiana's, permitting third-party claimants to sue the insurer directly, of particular concern for P&I clubs.
Disbursements: expenditure connected with the marine adventure; can be separately insured.
Disclosure: The pre-contract duty of the assured to disclose material circumstances to the underwriter, reformed in the UK by the Insurance Act 2015.
Dispatch Money: A reward paid by the owner to the charterer for completing loading or discharge faster than allowed, distinct from demurrage.
Diversion Expenses: Costs incurred when a vessel is diverted from her course due to an insured peril, sometimes covered as sue and labor.
Double Insurance: The situation, addressed in Section 32 of the Marine Insurance Act 1906, in which the same risk is insured by two or more policies exceeding the insurable value.
DTV-Hull: The German General Conditions for Hull Insurance issued by the Gesamtverband der Deutschen Versicherungswirtschaft, used in the German market.
Due Diligence Clause: A clause, particularly in IHC, conditioning cover on the assured exercising due diligence to maintain and operate the vessel.
Duration Clause: The clause specifying when cover attaches and ceases, including the warehouse-to-warehouse provision in Institute Cargo Clauses.
Duty of Fair Presentation: assured's duty under section 3 of the Insurance Act 2015 to disclose every material circumstance known or which ought to be known.

E

Earned Premium: portion of premium relating to the expired portion of the policy period.
Earthquake: A natural peril sometimes specifically named in cargo and hull covers, with treatment varying between clauses.
Eight-Ninths Sister Ship Clause: A clause in some hull forms allocating recovery in collisions between vessels under common ownership through arbitration as if owners were separate.
Endorsement: written amendment to the policy.
Enterprise Act 2016: The UK statute that, among other reforms, introduced a remedy of damages for late payment of insurance claims, supplementing the Insurance Act 2015.
Entry: A vessel's enrollment with a P&I club for a policy year, evidenced by the certificate of entry.
Equipment Insurance: Cover for separately identified shipboard equipment such as containers, lashings, and removable items, often outside hull cover.
Erika: 1999 tanker breakup off Brittany prompting EU Erika I, II, and III packages.
Errors and Omissions Cover: Liability cover for negligent acts of the assured in the conduct of marine business, sometimes purchased by brokers and managers.
Ever Given: 20,124 TEU ULCV (Suez 2021 incident).
Excess of Loss Reinsurance: A reinsurance treaty responding when individual losses or aggregations exceed an agreed retention.
Exchange Clause: A clause specifying the rate of exchange to be applied to claims denominated in a currency other than the policy currency.
Excluded Perils: Risks specifically not covered by the policy, such as ordinary wear and tear, inherent vice, and delay in cargo policies.
Expert Determination: An alternative dispute resolution mechanism, used in some marine policies for technical disputes.
Express Warranty: A warranty stated in or incorporated into the policy, breach of which suspends cover under reformed UK law.
Extended Conditions: Enhanced cargo terms providing wider perils than the base Institute Cargo Clauses (C).
Extraneous Perils: Risks beyond the perils of the seas, such as theft, pilferage, and non-delivery, generally insured under ICC (A) but not under (B) or (C).

F

Facultative Reinsurance: reinsurance of an individual risk negotiated separately for that risk.
Fair Presentation: The standard introduced by the UK Insurance Act 2015 requiring a disclosure that is reasonably clear and accessible and substantially true as to material representations.
FD&D: Freight, Demurrage, and Defense cover, a class providing legal costs cover for marine commercial disputes not falling within P&I.
FFA Defence Cover: A specialty defense cover responding to disputes arising under Forward Freight Agreements and other freight derivatives.
Fixed Premium: A premium agreed at inception without subsequent call or supplementary contribution, contrasted with mutual P&I calls.
Floater Policy: A policy covering an undefined collection of shipments or risks, with values reported by declaration.
Following the Settlement: A reinsurance principle obliging reinsurers to follow the cedant's bona fide claims settlements within the scope of the original cover.
Following Underwriter: An underwriter who subscribes to a slip on the terms negotiated by the leader.
Force Majeure: contractual excuse for non-performance; relevant to delay cover.
Forwarding Charges: cost of forwarding goods to destination after an insured peril, recoverable under Institute Cargo Clauses.
FOSFA Clauses: Federation of Oils, Seeds and Fats Associations standard contract terms relevant to insurance of edible oil cargoes.
Four-Fourths Collision Liability: The IHC option to cover the full collision liability through hull, eliminating the historical one-fourth borne by P&I.
Franchise: minimum percentage or amount of loss before the policy responds, the policy then paying the full loss.
Fraudulent Claim: see section 12 of the Insurance Act 2015 entitling insurer to refuse the claim and recover sums paid.
Freight at Risk: freight payable on delivery and therefore exposed to loss, eligible for separate insurance.
Freight Insurance: Cover for the loss of freight income consequent upon the loss of cargo or the failure to complete the voyage.
Full Conditions: The widest available cargo terms, conventionally Institute Cargo Clauses (A) plus War and Strikes.
Full Interest Admitted: A market expression indicating that the assured's insurable interest is conceded without further proof.
Funding Agreement: An agreement among International Group clubs governing the operation of the Pool and the funding of pooled claims.

G

Gard: The Norwegian-headquartered Assuranceforeningen Gard, an International Group P&I club founded in 1907, also writing energy and marine liability lines.
General Average (GA): voluntary sacrifice or extraordinary expenditure intentionally and reasonably made for the common safety, codified in the York-Antwerp Rules.
General Average Bond: undertaking by cargo interests on Lloyd's form to pay any GA contribution found due.
General Average Deposit: cash payment by cargo interests as security pending adjustment.
General Increase in Hazard: A change in circumstances that materially increases the risk, the consequences of which depend on policy wording and applicable law.
GMAA: The German Maritime Arbitration Association, providing arbitration services for marine disputes including insurance.
Goods in Trust: A category of cargo cover responding to liability for goods held in trust by the assured, common for warehousekeepers and freight forwarders.
Grounded Vessel Clause: Provisions addressing the recovery of grounding expenses, particularly in the Institute Time Clauses Hulls.
Group Excess Loss: The reinsurance layer purchased by the International Group above the Pool retention and Hydra layer.

H

Hague Rules: 1924 international convention on carrier liability under bills of lading.
Hague-Visby Rules: 1968 Visby Protocol and 1979 SDR Protocol to the Hague Rules.
Hamburg Rules: 1978 UN Convention on Carriage of Goods by Sea.
Hard Market: A market condition characterized by rising premiums, restricted capacity, and tightening of terms.
Heavy Weather Damage: hull damage from sea perils, with successive heavy weather periods aggregated under ITC Hulls 1/10/83 clause 12.2.
Held Covered: provision continuing cover on breach of warranty, deviation, change of voyage, or misdescription subject to notice and additional premium.
Himalaya Clause: Bill of lading clause extending carrier defenses to servants and subcontractors.
Hot Work Warranty: A warranty in some hull and builders risks policies prohibiting unauthorized hot work, breach of which suspends cover.
Hull and Machinery Insurance (H&M): The class covering loss of or damage to the ship, her machinery, equipment, and certain liabilities.
Hull War Risks: Insurance covering hull losses caused by war, strikes, piracy, terrorism, and related perils, typically excluded from primary hull cover.
Hydra Insurance Company Limited: The Bermuda-incorporated captive owned by International Group clubs, retaining specific layers of the IG reinsurance program.

I

IG Pooling Agreement: The contractual arrangement among International Group clubs by which claims exceeding individual club retentions are shared according to an agreed formula.
IHC: International Hull Clauses, issued by the International Underwriting Association on November 1, 2002, and amended in 2003, representing a modernized alternative to ITCH.
IMU: Inertial measurement unit for motion sensing on DP and survey.
Inchmaree Clause: A hull clause originating from the Inchmaree case, extending cover to losses caused by latent defects in machinery and certain crew negligence.
Increased Value Insurance: A separate policy covering the difference between insured value and market value, often used to avoid prejudicing primary hull claims.
Indemnity Principle: The principle that marine insurance is a contract of indemnity, restricting recovery to actual loss subject to agreed value provisions.
Inherent Vice: defect or quality in the goods causing self-destruction, excluded under ICC (A) clause 4.4.
Initial Period: The initial fixed period of a policy or charter, after which cancellation or variation may be possible.
Insolvency Clause: A reinsurance clause defining the reinsurer's obligations when the cedant becomes insolvent, often under New York law for US placements.
Institute Bulk Oil Clauses: Cargo clauses tailored to the carriage of bulk oil cargoes, addressing contamination and shore-tank measurement issues.
Institute Cargo Clauses (A) 1982: The widest standard cargo clauses, dated January 1, 1982, providing all risks cover subject to general exclusions.
Institute Cargo Clauses (A) 2009: The revised all risks cargo clauses dated January 1, 2009, modernizing exclusions and the duration provisions.
Institute Cargo Clauses (Air): Standard clauses for cargo carried by air, with provisions analogous to ICC but adapted for air transit.
Institute Cargo Clauses (B) 1982: Intermediate cargo cover dated January 1, 1982, restricted to named perils.
Institute Cargo Clauses (B) 2009: The revised intermediate cargo cover dated January 1, 2009.
Institute Cargo Clauses (C) 1982: The most restricted cargo cover dated January 1, 1982, limited to major casualty perils.
Institute Cargo Clauses (C) 2009: The revised restricted cargo cover dated January 1, 2009.
Institute Classification Clause: clause requiring carriage on classed vessels of acceptable age.
Institute Frozen Food Clauses (A) and (C): standard wordings for frozen food in cold-chain transit.
Institute Frozen Meat Clauses: Earlier specialty clauses for refrigerated meat shipments, addressing breakdown of refrigerating machinery.
Institute Replacement Clause: A clause permitting cargo claims for machinery parts to be settled on a replacement basis subject to specified deductions.
Institute Strikes Clauses (Cargo) 1982 and 2009: Standard clauses extending cargo cover to losses caused by strikers, locked-out workers, civil commotions, and terrorism, subject to listed exclusions.
Institute Theft, Pilferage and Non-Delivery Clause: An extension clause adding theft, pilferage, and non-delivery perils to restricted cargo covers.
Institute Time Clauses Hulls 1.10.83 (ITCH 83): Hull clauses dated October 1, 1983, widely used as the standard London market hull form for many years.
Institute Time Clauses Hulls 1.11.95 (ITCH 95): Updated hull clauses dated November 1, 1995, addressing certain deficiencies in the 1983 form.
Institute Voyage Clauses Hulls: Hull clauses for individual voyages rather than time periods.
Institute War and Strikes Clauses Hulls Time 1.11.95: Updated war and strikes hull clauses dated November 1, 1995.
Institute War and Strikes Clauses Hulls Time 1/10/83: hull war risk wording, often providing the basis for war risk pool cover.
Institute War Clauses (Cargo) 1982 and 2009: Cargo war risks clauses paired with the corresponding ICC versions.
Insurable Interest: legal or equitable relationship to the adventure giving the right to insure, required by section 5 of the Marine Insurance Act 1906.
Insurable Value: The value of the insured subject matter for the purposes of the policy, computed under Section 16 of the Marine Insurance Act 1906 absent agreed value.
Insurance Act 2015: UK statute replacing the duty of utmost good faith disclosure regime and reforming warranties.
International Group of P&I Clubs (IG): The association of P&I clubs that share large claims through the Pooling Agreement and place collective reinsurance, currently comprising twelve member clubs.
International Hull Clauses (IHC): See IHC.
ITC Clause 11 (Sue and Labor): The provision under which the assured is reimbursed for charges incurred to avert or minimize insured loss.
ITC Clause 8 (Collision Liability): The three-fourths collision liability clause in the Institute Time Clauses Hulls.

J

Japan P&I Club: The Japan Ship Owners' Mutual Protection and Indemnity Association, an International Group P&I club serving primarily Japanese-flag and Japanese-managed tonnage.
JH 2005/006: A standard Joint Hull Committee marketwide exclusion clause used in the London market.
JH Notice: A communication issued by the Joint Hull Committee to the London market on standard clause amendments or guidance.
JHC Clauses: Japanese hull clauses used by Japanese marine underwriters as the standard local hull form, distinct from Institute clauses.
Joint Cargo Committee (JCC): The London market committee that develops and publishes standard cargo clauses through the Lloyd's Market Association and International Underwriting Association.
Joint Excess of Loss Committee (JELC): A London committee involved in joint marine excess of loss programs.
Joint Hull Committee (JHC): Lloyd's and IUA committee responsible for standard hull clauses.
Joint War Committee (JWC): Lloyd's/IUA committee publishing listed areas for war/strikes risk.
Joint War Risks Cancellation Clauses: Standard cancellation provisions for war risks insurances, including the standard seven days notice mechanism.
JWC Listed Areas: Geographic zones triggering hull war additional premium.

K

Knock-for-Knock Agreement: mutual waiver of recourse between contracting parties, common in offshore contracts.
Known Loss: A loss known to have occurred at policy inception, generally not insurable as it lacks the element of fortuity.

L

Latent Defect: defect in machinery or hull not discoverable by due diligence, addressed by ITC Hulls 1/10/83 clause 6.2.2 (Inchmaree-style cover).
Lay Up Returns: Returns of premium under hull policies for periods during which the vessel is laid up in a safe port, subject to policy conditions.
Layered Reinsurance: Reinsurance arranged in successive layers attaching at progressively higher amounts.
Lead Underwriter: The first underwriter to subscribe to a slip, with authority on the placing slip to negotiate terms binding on following markets in defined respects.
Leading Underwriter Agreement: The market agreement defining the authority of the lead underwriter to agree certain matters on behalf of following markets.
Letter of indemnity: LOI, undertaking to indemnify carrier for actions taken without bills of lading.
Letter of Undertaking (LOU): security letter issued by a P&I club to secure release of a ship from arrest.
Liability Convention 1971: The Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, supplementing the CLC.
Limitation Fund: The fund constituted by the shipowner to limit liability, into which claimants must prove.
Limitation of Liability: Right of shipowner to cap liability under LLMC 1976/1996.
Liner Negligence Clause: extension to cargo cover treating negligence of carriers as an insured peril.
Lloyd's Form: Common shorthand for LOF, the Lloyd's Standard Form of Salvage Agreement.
Lloyd's Joint Excess Loss Committee: A committee involved in coordination of marine excess of loss reinsurance in the London market.
Lloyd's of London: The London insurance market organized under the Lloyd's Act 1871 and subsequent statutes, comprising managing agents, syndicates, members, and the Corporation.
Lloyd's Open Form (LOF): Standard salvage agreement with no-cure-no-pay basis and SCOPIC.
Lloyd's Policy Signing Office (LPSO): The historic office that signed Lloyd's policies, succeeded by electronic placement systems.
Lloyd's Syndicate: underwriting member at Lloyd's, identified by syndicate number.
LMA: The Lloyd's Market Association, the trade body representing managing agents at Lloyd's, publishing standard clauses and guidance.
LMA5390: A standard Lloyd's Market Association cyber exclusion clause used in marine and other classes.
London P&I Club: The London Steam-Ship Owners' Mutual Insurance Association Limited, an International Group P&I club founded in 1866.
Loss of Hire (LOH): Insurance compensating the owner for loss of charter hire during periods the vessel is off-hire due to insured damage, subject to deductible days and indemnity period limits.
Loss of Profits Insurance: Cover for consequential financial losses arising from interruption of operations, sometimes written alongside LOH.

M

M/V Wakashio: The bulk carrier that grounded off Mauritius in July 2020, causing a significant bunker oil spill that drew attention to non-tanker pollution liability under the Bunker Convention.
Managing Agent: The Lloyd's entity authorized by the Corporation of Lloyd's to manage one or more syndicates and underwrite on behalf of members.
Marine Insurance Act 1906: UK statute codifying marine insurance law, substantially amended for non-consumer business by the Insurance Act 2015.
Marine Liability Insurance: liability cover for shipowners, charterers, terminals, and others involved in marine adventure.
Material Circumstance: information which would influence the judgment of a prudent insurer, relevant to fair presentation.
MERS Clause: A clause referring to mutual emergency response systems for ports and terminals.
Mixed Policy: A marine policy combining time and voyage elements.
Mortgagee's Additional Perils (Pollution) Insurance: Cover extending MII to indemnify a mortgagee taking possession against pollution liabilities that may attach to the mortgagee.
Mortgagees' Interest Insurance (MII): cover for ship mortgagees against loss of security through failure of the owner's hull cover.
MSC Flaminia: The container ship that experienced a major cargo fire in mid-Atlantic in July 2012, leading to significant general average and cargo liability claims and US litigation on dangerous cargo.
MSC Napoli: 2007 container ship beached at Branscombe, Devon, after Channel structural failure.
MSC Zoe: The container ship that lost approximately 342 containers overboard in the North Sea in January 2019, generating significant cargo, environmental, and liability claims.
Mutual Insurance: insurance by an association of members for their common account, the structural form of P&I clubs.
Mutual Premium: The advance call, supplementary call, and release call structure used by mutual P&I clubs.

N

Named Perils: cover responding only to perils specifically listed, as in ICC (B) and (C).
Net Loss Reinsurance: Reinsurance responding to the reinsured's loss net of all other recoveries.
NMIP: Norwegian Marine Insurance Plan, issued in 2013 with biennial revisions including the 2019 and 2023 versions, used as a leading non-Anglo hull and war risks form.
No Cure No Pay: traditional salvage principle that salvors are paid only on success.
Non-Disclosure: failure to disclose material circumstance, now governed by the Insurance Act 2015 proportionate remedies.
Non-Marine Liabilities: Liabilities of a shipowner not arising from the operation of the ship as a ship, generally outside P&I cover.