# Transport and Insurance Lexicon

Standard English terminology for transport (maritime, road, rail, air, multimodal) and insurance agreements. Part 1 covers carriage contracts, bills of lading, charterparties, freight forwarding and transport liability regimes. Part 2 covers insurance contracts, life and non-life lines, reinsurance, brokers and claims. Marine insurance (Institute Cargo Clauses, hull and machinery, P&I), aviation insurance and carrier liability insurance sit at the intersection of both parts.

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## Part 1 — Transport and Shipping

Covers carriage contracts, bills of lading, Incoterms, freight forwarding, maritime liens, carriage of goods, charterparties, logistics agreements and related instruments.

## Core Shipping Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| contract of carriage | Agreement governing the transport of goods | transportation agreement, shipping agreement |
| carriage by sea / sea transport | Transport of goods by vessel | maritime transport, ocean carriage |
| carriage by air / air transport | Transport of goods by aircraft | air freight, air shipment |
| carriage by road / road transport | Transport of goods by road vehicle | road haulage (more specific), trucking |
| carriage by rail / rail transport | Transport of goods by railway | rail freight, rail haulage |
| multimodal transport | Transport involving two or more modes of transport | multi-modal, combined transport (when single operator) |
| combined transport | Single operator using multiple transport modes | multimodal (implies multiple operators) |
| shipment / forwarding | The goods being transported or the forwarding process | shipping (may imply sea transport) |
| freight forwarder / forwarding agent | Agent arranging and coordinating transport | shipper (is the person sending), freight broker |
| carrier | Party responsible for transporting goods | shipper (is sender), consignee (is receiver) |
| shipper | Party sending the goods (consignor) | sender, exporter (if cross-border) |
| consignee | Party receiving the goods (consignee) | receiver, importer (if cross-border) |
| charter | Agreement hiring a vessel for stated period or voyage | charterage, ship hire |
| time charter | Charter for specified time period; charterer pays hire | voyage charter (distinct: for single voyage) |
| voyage charter | Charter for single voyage; freight paid per unit of cargo | time charter (distinct: for time period) |
| bareboat charter / demise charter | Charter of ship without crew; charterer assumes full control | full charter, charter without crew |
| bill of lading (B/L) | Transport document evidencing contract of carriage and receipt of goods | bill of lading document, shipping document |
| ocean bill of lading | Bill of lading for sea transport | sea waybill (lacks negotiability) |
| on-board bill of lading | Bill of lading signed when goods loaded on board vessel | received-for-shipment B/L (distinct: signed before loading) |
| received-for-shipment bill of lading | Bill of lading signed when goods received at port (before loading) | on-board B/L (distinct: signed after loading) |
| clean bill of lading | Bill of lading with no exceptions or reservations regarding cargo condition | claused B/L (has reservations), dirty bill of lading |
| claused bill of lading | Bill of lading noting defects, damage, or non-conformity of cargo | clean B/L (no reservations), qualifying B/L |
| waybill | Non-negotiable transport document (no title transfer) | bill of lading (is negotiable) |
| air waybill (AWB) | Non-negotiable transport document for air cargo | air bill of lading (incorrect: air cargo is non-negotiable) |
| CMR consignment note | Transport document for road carriage under CMR Convention | CMR waybill, road transport document |
| CIM consignment note | Transport document for rail carriage under CIM Convention | rail waybill, railway consignment note |
| transport document | Generic term for any document evidencing contract of carriage | shipping document, carriage document |
| through bill of lading | Bill of lading covering combined transport with single carrier to final destination | combined transport bill, multimodal bill of lading |
| combined transport bill of lading | Bill of lading evidencing combined transport (sea + road/rail) | through bill, integrated transport bill |
| letter of indemnity (LOI) | Document issued to carrier indemnifying against loss from not producing B/L | indemnity, indemnification letter |
| sea protest | Formal protest by master of vessel against external circumstances | ship's protest, master's protest |
| ship arrest | Seizure of vessel by order of court as security for claim | vessel arrest, maritime attachment |

## Charter Party Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| charter party | Contract between shipowner and charterer for hire of vessel | chartering agreement, charter contract |
| shipowner | Owner of the vessel | ship owner (two words acceptable) |
| charterer | Party hiring the vessel for time or voyage | ship charterer, lessee |
| vessel | Ship or large boat (formal term) | boat (informal), ship (acceptable) |
| cargo | Goods transported by vessel | freight (may imply payment), goods, merchandise |
| gross tonnage (GT) | Total internal volume of vessel in tonnes | tonnage, gross ton |
| net tonnage (NT) | Volume available for cargo excluding crew/engine spaces | net ton, net tonnes |
| deadweight tonnage (DWT) | Maximum weight vessel can carry including cargo and provisions | deadweight, carrying capacity |
| freight | Payment for carriage of goods (or goods themselves) | shipping cost (less precise); carriage charges (vague) |
| time freight / hire | Charge per unit of time for time charter | hire rate, daily rate |
| voyage freight | Charge per unit of cargo for voyage charter | freight rate, per-tonne freight |
| demurrage | Charges for delay in loading/unloading beyond allowed laytime | overline charges, detention charges |
| laytime | Time allowed for loading and unloading cargo (contractual) | loading time, discharge time |
| dispatch / despatch money | Payment/credit for earlier completion of laytime | despatch money (UK spelling), speed bonus |
| loading port / port of loading | Port where cargo is loaded onto vessel | port of embarkation, loading point |
| discharge port / port of discharge | Port where cargo is unloaded from vessel | port of debarkation, discharge point |
| safe port | Port where vessel can enter, load/unload, and depart without risk | safe port warranty, port safety clause |
| safe berth | Specific berth at port where vessel can load/unload safely | safe port (encompasses all aspects) |
| notice of readiness (NOR) | Notice given by master that vessel is ready for loading/unloading | readiness notice, NOR notice |
| negligence clause | Charter party clause limiting carrier's liability for negligence | negligence limitation, Hague-Visby protection |
| paramount clause | Charter party clause requiring compliance with applicable bills-of-lading legislation (typically the Hague or Hague-Visby Rules) | controlling clause (imprecise); supreme clause |
| bunkers / fuel | Fuel on board vessel; bunker clause allocates fuel costs between shipowner and charterer | Fuel oil (less standard in maritime context) |
| bunker clause | Charter party clause allocating cost of fuel remaining on board at delivery/redelivery | Fuel clause (less standard) |
| off-hire | Period during time charter when hire ceases (vessel unable to perform due to breakdown, drydocking, etc.) | Non-hire period (non-standard); Suspension of hire (less precise) |
| laydays / canceling date (lay/can) | Period within which vessel must arrive at loading port; if vessel not ready by canceling date, charterer may cancel | Arrival window (less precise); Loading date (too vague) |
| deviation | Departure from agreed route of voyage | deviation clause, voyage deviation |

## Maritime Law Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| maritime lien | Statutory right of shipowner/creditor to seize vessel for unpaid claims | ship's lien, maritime claim (broader) |
| ship mortgage | Mortgaging of vessel as security for debt | vessel mortgage, maritime mortgage |
| arrest of vessel | Seizure of vessel by court order as security for maritime claim | ship arrest, detention, attachment |
| general average | Loss shared proportionally among all cargo and vessel interests | average, general loss |
| particular average | Loss to cargo interest only (not shared); marine insurance term | average, partial loss |
| average contribution | Proportional contribution by cargo/vessel to general average | general average contribution, loss sharing |
| salvage | Reward for saving vessel, cargo, or maritime property in distress | salvage services, rescue operation |
| salvage and assistance | Combined concept of salvage (reward-based) and assistance (contractual) | salvage and rescue, assistance services |
| abandonment | Relinquishment of vessel, cargo, or interest to underwriters | maritime abandonment, total loss abandonment |
| carrier's liability | Legal responsibility of carrier for cargo loss/damage | shipper's liability (distinct: shipper's responsibility) |
| limitation of liability | Contractual or statutory cap on liability (per unit of cargo, tonnage, or amount) | exemption clause (broader), liability cap |
| Hague-Visby Rules | International maritime convention on bills of lading (1968, amended) | Hague Rules (older 1924 version), Hague-Visby Convention |
| Hamburg Rules | International maritime convention on bills of lading (1978) | UN Convention on Carriage of Goods by Sea |
| Rotterdam Rules | International maritime convention on bills of lading (2008) | UN Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea |
| Athens Convention | International maritime convention on passenger liability (1974, amended 2002) | Athens Convention on Passenger Liability |
| flag / registry | Country under whose law vessel is registered and whose flag it flies | flag state, flag of convenience (political designation) |
| classification | Determination of vessel's structural and equipment standard | vessel classification, class rating |
| classification society | Organization conducting vessel inspections and issuing class certificates | class society (acceptable), classification body |
| seaworthiness certificate | Certificate confirming vessel meets safety and technical standards | seaworthiness declaration, class certificate |
| class certificate | Certificate issued by classification society confirming vessel class | class notation, vessel certificate |
| war risk | Risk of loss from war, piracy, terrorism, or political violence; often separately insured or excluded from standard cover | War risk insurance (specific product); Political risk (broader) |
| York-Antwerp Rules | International rules governing general average adjustment (most recent: 2016 revision) | General average rules (less precise) |
| P&I club (protection and indemnity) | Mutual insurance association providing liability cover for shipowners | P&I insurance, protection and indemnity club |

## Incoterms and Delivery

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| delivery term / Incoterm | Agreed point at which risk/cost transfers to buyer (ICC Incoterms standard) | Incoterm, term of delivery |
| EXW (Ex Works) | Seller's obligation ends at premises; buyer arranges all transport | exworks, ex-works terms |
| FCA (Free Carrier) | Seller delivers goods to carrier nominated by buyer | free carrier, FCA terms |
| CFR (Cost and Freight) | Seller pays freight to destination; buyer bears risk after loading | cost and freight, C&F |
| CIF (Cost, Insurance and Freight) | Seller pays freight and insurance; buyer bears risk after loading | cost insurance freight, CIF terms |
| FOB (Free on Board) | Seller delivers goods on board vessel; risk transfers at that point | free on board, FOB terms |
| DAP (Delivered at Place) | Seller delivers goods to destination; buyer bears risk at that point | delivered at place, DAP terms |
| DDP (Delivered Duty Paid) | Seller bears all cost and risk to destination including duties | delivered duty paid, DDP terms |
| customs clearance | Process of obtaining customs authority approval for import/export | customs clearance procedure, customs processing |
| customs duty | Tax levied by customs authority on imported goods | customs tax, import duty, tariff |
| customs declaration | Document submitted to customs describing goods and value | customs entry, import declaration |
| customs entry | Official customs record of import/export goods | customs clearance entry, customs filing |
| delivery point | Specified location where goods delivery obligations are fulfilled | delivery location, delivery place |
| transfer of risk | Contractual point at which loss/damage risk passes to buyer | risk transfer, risk allocation, passage of risk |
| transfer of title | Contractual point at which ownership of goods passes to buyer | title transfer, ownership transfer |

## Freight and Logistics Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| forwarding contract | Contract between shipper and freight forwarder for arrangement of transport | forwarding agreement, freight agreement |
| logistics agreement | Agreement governing arrangement of warehousing, transport, and distribution | logistics contract, supply chain agreement |
| warehouse / storage facility | Facility for storage of goods pending transport | storage, depository (legal term for tangible bailment) |
| bonded warehouse / customs warehouse | Warehouse under customs control holding goods pending clearance/payment | duty warehouse, customs storage |
| cargo handling | Loading, unloading, and movement of cargo at ports/terminals | stevedoring (dockside), cargo movement |
| packaging | Protective wrapping and containers for goods | packing, packaging materials |
| containerization (US default) / containerisation (UK) | Placement of goods in standard containers for transport | containerized transport (use the noun form instead) |
| container | Standard metal box (20ft or 40ft) used for intermodal transport | shipping container, cargo container |
| FCL (full container load) | Shipment filling entire 20ft or 40ft container | full container load, container load |
| LCL (less than container load) | Shipment not filling entire container (consolidated with other shippers) | less than container load, partial container |
| groupage / consolidated cargo | Consolidation of multiple smaller shipments in one transport | consolidated shipment, cargo consolidation |
| tracking | Real-time monitoring of shipment location and status | shipment tracking, cargo tracking |
| last mile | Final stage of delivery from distribution center to customer | last-mile delivery, final delivery |
| logistics hub / distribution center | Central facility for consolidation and distribution of goods | distribution hub, logistics center, warehouse |

## Section Headings

| Correct English heading | Avoid |
|---|---|
| CARGO DESCRIPTION | DESCRIPTION OF CARGO, GOODS DESCRIPTION |
| LOADING AND DISCHARGE PORTS | PORTS OF LOADING AND DISCHARGE |
| FREIGHT AND PAYMENT | FREIGHT PAYMENT, PAYMENT TERMS |
| LAYTIME AND DEMURRAGE | LAYTIME/DEMURRAGE, TIME AND DEMURRAGE |
| CARRIER'S LIABILITY | LIABILITY OF CARRIER, CARRIER LIABILITY |
| INSURANCE | MARINE INSURANCE, CARGO INSURANCE |
| AVERAGE | GENERAL AVERAGE, AVERAGE CLAIMS |
| MARITIME LIENS | MARITIME LIENS, SHIP LIENS |
| GOVERNING LAW | APPLICABLE LAW, LAW APPLICABLE |
| MARITIME ARBITRATION | ARBITRATION, MARITIME ARBITRATION CLAUSE |
| GENERAL PROVISIONS | MISCELLANEOUS, FINAL CLAUSES |

## Notes

- **BIMCO standard forms**: Shipping contracts often reference BIMCO standard forms
  (GENCON, NYPE, BALTIME, WORLDSCALE, etc.). Keep form names and acronyms in their
  original English form. Never translate.

- **Incoterms**: Always use the three-letter ICC Incoterms abbreviations (EXW, FOB, CIF, DAP,
  DDP, etc.) with full English names on first use. Incoterms® 2020 is the current edition
  (official as of January 2020). Never translate Incoterms abbreviations.

- **"Bill of lading" vs. "policy"**: Some source languages use a cognate term for both "bill of lading" (shipping) and "insurance policy". Always distinguish based on context: in shipping/carriage, use "bill of lading" (B/L); in insurance, use "policy". Sub-lexicon provides source-language mappings.

- **London arbitration**: Many charter parties provide for London arbitration under the
  LMAA (London Maritime Arbitrators Association) terms. Keep "LMAA" as-is; this is the
  standard English designation.

- **CMR Convention**: The Convention on the Contract for the International Carriage of
  Goods by Road (1956). Keep "CMR" and expand on first use as "CMR Convention" or
  "Convention on the Contract for the International Carriage of Goods by Road". CMR
  consignment note is the standard transport document.

- **CIM Convention**: International Convention concerning the Carriage of Goods by Rail.
  Keep "CIM" as-is; this is the standard English designation. CIM consignment note is
  the standard transport document.

- **Maritime English**: Maritime law has its own highly specialized English vocabulary
  developed over centuries of international practice. Use the established terms:
  - Use "demurrage" not "delay penalty"
  - Use "laytime" not "loading time" or "discharge time"
  - Use "dispatch" (or "despatch" in UK English) not "speed bonus"
  - Use "deviation" not "route change"
  - Use "charter party" not "chartering agreement"
  - Use "shipowner" not "ship owner" (though both are acceptable)
  These terms are standardized across all English-speaking maritime jurisdictions.

- **Bill of lading types**: Distinguish carefully between:
  - On-board B/L: signed after goods loaded on vessel (creates date certainty)
  - Received-for-shipment B/L: signed at port before loading (pre-loading)
  - Clean B/L: no exceptions to cargo condition
  - Claused B/L: notes defects or damage ("dirty" B/L in market parlance)
  Each type has distinct commercial/legal consequences.

- **Ship arrest vs attachment**: Maritime lien holders can arrest a vessel (seize by court
  order). General attachment is a broader civil law concept. Use "arrest of vessel" for
  maritime-specific seizure; use "attachment" only for non-maritime contexts.

- **Letter of indemnity (LOI)**: Issued to carrier when B/L cannot be produced (e.g., lost,
  delayed). LOI indemnifies carrier against liability for delivery without production of B/L.
  Standard maritime practice but creates off-balance-sheet risk.

- **Through bill of lading**: Single B/L covering multiple transport modes with single carrier
  to final destination. Distinct from "combined transport B/L" which may involve multiple
  carriers. Use "through B/L" when single carrier; "combined transport B/L" when multiple modes.

- **Hague-Visby / Hamburg / Rotterdam Rules**: International maritime conventions on B/L
  and carrier liability. Keep names as-is (e.g., "Hague-Visby Rules" not "Hague Visby").
  These are the three competing international regimes (Hague-Visby still most used; Rotterdam
  Rules most recent but limited adoption).

- **Safe port warranty**: Standard charter party warranty that named ports are safe for vessel.
  Extends beyond physical safety to legal safety (no war, embargo, etc.). Critical in
  charter party negotiations.

- **Classification society**: Examples include Lloyd's Register, DNV GL, American Bureau of
  Shipping (ABS), ClassNK. Keep society names as-is.

---

## Part 2 — Insurance and Reinsurance

## Core Insurance Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| insurance contract / insurance policy | Binding agreement between insurer and insured defining coverage, exclusions, conditions | policy agreement; coverage document (less precise) |
| policy | Contract of insurance; specify type (life, non-life, all-risks, multi-peril) | insurance agreement (less common usage) |
| life policy / life insurance policy | Insurance covering death, survival, annuities; may be term, whole life, or universal life | life insurance; mortality policy (too vague) |
| non-life policy / property and casualty policy (P&C) | Insurance against loss of property or liability; includes fire, theft, liability, marine | casualty policy; general insurance (regional) |
| all-risks policy / all-risks insurance | Coverage for all risks except those specifically excluded; more comprehensive than named-peril | blanket coverage; comprehensive insurance (imprecise) |
| multi-peril policy | Policy covering multiple named risks (e.g., fire AND theft AND water damage); distinct from all-risks | combination policy; combined coverage (vague) |
| named-peril policy | Coverage limited to explicitly listed perils only; narrower than all-risks | specified perils; enumerated coverage |
| general policy conditions / policy terms and conditions | Standard, non-negotiable provisions applying to all policies of that type; issued by insurer | standard terms; policy clauses (too vague) |
| special conditions / endorsements | Policy-specific amendments, rider clauses, or additional coverages modifying standard terms | riders; amendments (imprecise) |
| policy endorsement / rider / amendment | Document modifying, adding, or excluding coverage from the base policy | policy amendment; policy change (too vague) |
| certificate of insurance | Proof of insurance coverage issued by insurer or broker, not the actual policy | proof of insurance; insurance evidence (less precise) |

## Premiums and Costs

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| premium | Payment made by insured to insurer for coverage; may be annual, monthly, or single | insurance payment; coverage cost (too vague) |
| annual premium | Premium payable once per year | yearly premium; annual payment (imprecise) |
| single premium | Entire policy premium paid in one lump sum (common for life insurance) | one-time premium; lump-sum payment (less precise) |
| additional premium / loading | Premium surcharge added due to higher risk (e.g., occupation, health condition) | risk premium; surcharge (too vague) |
| claims-made policy premium | Premium for claims-made coverage; typically lower than occurrence premium in first years | retro premium; prior-acts premium (less precise) |

## Retention and Liability Limits

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| excess (UK) / deductible (US) | Fixed amount insured must pay toward a claim; applies per claim or per occurrence | franchise (confuses with franchise deductible); retention (too vague) |
| absolute deductible / unconditional deductible | Deductible applies to ALL claims; insurer never pays the deductible amount | straight deductible; simple deductible |
| franchise deductible / franchise clause | Deductible applies only if loss exceeds threshold; if threshold exceeded, insurer pays full loss (no deductible) | franchise (alone); elimination period (confuses with disability insurance) |
| co-insurance / proportional retention | Insured retains fixed percentage of each claim (e.g., 10% co-insurance on claims); insurer pays remainder | shared loss; contributory retention (less standard) |
| compulsory retention / compulsory co-insurance | Contractual requirement that insured retain portion of risk; often imposed by reinsurers | mandatory co-insurance; forced retention (imprecise) |
| limit of indemnity (LoI) / sum insured | Maximum amount insurer will pay per claim or in aggregate | liability limit; coverage limit (too vague) |
| per-occurrence limit | Maximum insurer pays for any single loss event; resets annually | per-claim limit; single-incident limit (regional) |
| aggregate limit / annual aggregate | Maximum insurer pays across all claims in a policy period; typically annual or multi-year | total limit; combined limit (imprecise) |
| insured value / sum insured | Declared value of property or interest being insured; basis for premium calculation and limit | coverage amount; insurable value (less precise) |
| underinsurance / undervaluation | Situation where sum insured is less than actual value; may trigger average clause penalties | under-coverage; insufficient coverage (vague) |
| reinstatement (of sum insured) | Automatic restoration of limit to original amount after a claim; important for multi-claim exposures | restoration; limit restoration (less precise) |
| uninsured losses | Losses falling outside policy coverage due to exclusions or limits; remain insured's responsibility | uncovered losses; excluded losses (imprecise) |

## Claims Terminology

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| claim / loss | In English, distinguish: "loss" = the event/damage; "claim" = the demand for indemnity | incident; event (too vague) |
| notice of loss / claim notification | Written notification to insurer of a loss; typically must occur within specified timeframe | loss report; incident report (imprecise) |
| notification condition / notification clause | Policy condition requiring timely notification of loss; breach may void or reduce coverage; one of the most litigated insurance provisions | reporting requirement; notice clause (imprecise) |
| opening of a claim | Formal initiation of claims process by insurer after receiving notice; triggers investigation | claim acceptance; claim commencement (vague) |
| claims settlement / claims adjustment / adjustment of claim | Process of investigating, negotiating, and paying a claim | claims handling; claim resolution (too vague) |
| indemnity / indemnification | Insurer's obligation to compensate insured for covered losses; foundational insurance concept | compensation; reimbursement (less legally precise) |
| indemnification clause | Policy language defining insurer's obligation and limits | indemnity clause; coverage clause (ambiguous) |
| compensation / damages | Payment to claimant for loss suffered; in legal context, "damages" implies legal liability, "compensation" more general | payment; restitution (too vague) |
| actual loss / direct loss | Tangible, immediate loss directly caused by insured peril (e.g., fire damage to building) | direct damage; material loss (imprecise) |
| consequential loss / loss of profit / indirect loss | Economic harm flowing indirectly from insured peril (e.g., loss of business income from factory fire); often excluded | business interruption loss; secondary loss (regional) |
| business interruption (BI) / business interruption loss | Loss of net profit due to interruption of business operations from covered peril; separate policy or endorsement | income loss; operational loss (imprecise) |
| non-pecuniary loss / moral damages | Loss not susceptible to economic quantification (e.g., pain and suffering, emotional distress, reputational harm) | intangible loss; emotional loss (imprecise) |
| loss reserve / claims reserve | Insurer's accounting provision for estimated future claim payments | reserve for losses; liability reserve (too vague) |

## Underwriting and Duty of Disclosure

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| underwriting | Process of evaluating risk, determining insurability, setting premiums, and issuing policies | risk assessment; risk evaluation (too vague) |
| underwriter | Professional who evaluates risk and makes coverage decisions; distinct from insurance company itself | risk assessor; insurance underwriter (redundant) |
| material non-disclosure / non-disclosure of material fact | Failure to disclose fact that would influence insurer's decision or premium; grounds for rescission | misrepresentation; non-disclosure (less precise in legal context) |
| duty of utmost good faith / duty of uberrimae fidei | Insurance-specific principle requiring both parties to act honestly and disclose all material facts. Note: UK Insurance Act 2015 replaced this as basis for avoidance with proportionate remedies regime | good faith obligation; fiduciary duty (too vague) |
| proposal form / application form | Document completed by applicant providing information for underwriting | insurance application; information form (imprecise) |
| pre-existing condition / pre-existing exclusion | Medical or physical condition existing before insurance commencement; often excluded in health/life policies | prior condition; historical condition (less precise) |

## Claims Professionals

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| loss adjuster / claims adjuster | Professional appointed by insurer to investigate and assess claim value | claims investigator; loss inspector (imprecise) |
| loss assessor / assessor | Professional appointed by insured (at insurer's expense) to represent insured's interests in claims process | insured's representative; claims representative (too vague) |
| actuary | Professional using statistics and mathematics to calculate insurance premiums and reserves | insurance mathematician; risk calculator (imprecise) |

## Parties and Roles

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| insurer / underwriter | Entity (insurance company) providing coverage and accepting risk; "underwriter" used in context of underwriting decision | insurance company; carrier (regional) |
| insured / policyholder | Entity covered by insurance; in life insurance, insured and policyholder may differ | covered party; beneficiary (confuses beneficiary role) |
| policyholder / contracting party | Entity that owns/holds policy; may differ from insured (life) or beneficiary | policy owner; contract party (ambiguous) |
| beneficiary | Person or entity designated to receive insurance proceeds (esp. life insurance, disability, accident) | recipient; designee (too vague) |
| insurance intermediary / intermediary | Broker or agent acting between insured and insurer; general term | agent; representative (ambiguous) |
| insurance broker / broker | Independent intermediary representing client (usually insured), shopping coverage across multiple insurers | broker; independent agent (agent implies insurer-appointed) |
| insurance agent / agent | Dependent representative working for/on behalf of specific insurer | agent; direct representative (too vague) |
| third-party claimant | Person/entity making claim under insured's liability insurance (not the policyholder) | injured party; plaintiff (legal term; imprecise in insurance) |
| reinsurer | Insurer that accepts risk from primary insurer (cedant) via reinsurance treaty | insurance company accepting risk; reinsurance underwriter (imprecise) |
| cedant / ceding company | Primary insurer transferring risk to reinsurer | ceding insurer; primary insurer (ambiguous) |
| retrocedant | Company ceding risk to a retrocedent (reinsurer of reinsurers) | retro-ceding company (too vague) |

## Coverage Types

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| general liability / public liability | Coverage for bodily injury/property damage liability arising from normal business operations | business liability; premises liability (less comprehensive) |
| professional indemnity (PI) / professional liability | Coverage for liability arising from professional error, omission, or negligence (lawyers, doctors, consultants) | malpractice insurance; errors and omissions (imprecise) |
| product liability | Coverage for liability arising from injury or damage caused by insured's product | product defect insurance; manufacturing liability (imprecise) |
| motor third-party liability / third-party motor | Motor vehicle liability for bodily injury/property damage to other parties (mandatory in most jurisdictions) | auto liability; motor liability (regional) |
| fire insurance | Insurance against loss due to fire (and often extended perils like explosion, smoke damage) | fire and perils policy; building insurance (imprecise) |
| theft insurance / theft and burglary | Insurance against loss of property due to theft or burglary | burglary insurance; larceny insurance (imprecise) |
| cargo insurance / marine cargo insurance | Insurance for goods in transit by sea, air, or land | transit insurance; goods-in-transit (less precise) |
| credit insurance | Insurance protecting creditor/supplier against non-payment by customer/debtor | trade credit insurance; debtor insurance (imprecise) |
| surety / bonding / surety bonds | Guarantee by surety that principal will perform obligations; if principal fails, surety pays obligee | fidelity bond; performance guarantee (confuses types) |
| directors' and officers' liability (D&O) | Coverage for individual liability of directors/officers for wrongful acts, breach of duty, employment practices | D&O insurance; management liability (less precise) |
| cyber risk / cyber liability / cyber insurance | Coverage for data breach, business interruption, liability from cyber incidents | data breach insurance; information security insurance (less complete) |
| workmen's compensation / workers' compensation | Statutory insurance covering employee injuries/illnesses arising from employment (US/UK terms vary) | employee compensation; workplace injury (imprecise) |
| employers' liability / employer's liability | Coverage for employer's legal liability for employee injuries; distinct from workers' compensation | employment liability; occupational injury liability (imprecise) |
| W&I insurance / representations and warranties insurance | Specialized insurance covering breach of seller representations/warranties in M&A transactions | deal insurance; acquisition insurance (imprecise). Cross-reference M&A lexicon. |

## Coverage Basis — Critical Distinction

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| occurrence-based coverage / loss occurrence basis | Policy covers losses occurring during policy period, regardless of when claim is filed; protects tail risk; standard for property | occurrence coverage; event-based coverage (imprecise) |
| claims-made coverage | Policy covers claims FILED during policy period, even if loss occurred earlier; standard for professional liability | claims-made basis; reporting basis (too vague) |
| retroactive date | In claims-made policies, earliest date a covered loss may have occurred; defines "prior acts" exposure | retro date; lookback date (colloquial) |
| extended reporting period (ERP) / tail coverage | Optional coverage extending reporting period after policy expires; essential for claims-made policies | run-off coverage; tail period (imprecise) |

## Exclusions and Conditions

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| exclusion / excluded peril | Specified risk not covered by policy; listed in policy exclusions section | exception; carve-out (too vague) |
| condition / policy condition | Obligation or requirement insured must meet for coverage to apply (e.g., maintenance requirement) | policy requirement; insurance requirement (imprecise) |
| average clause / condition of average / pro rata condition | If insured under-insures property, claim payment is reduced proportionately | pro rata clause; underinsurance clause (too vague) |
| waiver of subrogation | Insurer waives right to pursue third parties responsible for loss; negotiated in contracts | waived subrogation; subrogation waiver (less precise) |
| cross-liability clause | Policy responds to claim by one insured against another insured; critical in multi-party policies | cross-indemnity; mutual liability (imprecise) |

## Reinsurance Terms

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| reinsurance | Risk transfer arrangement where primary insurer (cedant) pays reinsurer to accept portion of risk | insurance of insurance; risk transfer (imprecise) |
| reinsurance treaty / treaty reinsurance | Ongoing reinsurance arrangement covering multiple primary insurance policies; automatic coverage | treaty; facultative-obligatory arrangement (less standard) |
| facultative reinsurance | Case-by-case reinsurance arrangement; reinsurer can accept/reject individual risks | facultative placement; individual reinsurance (imprecise) |
| facultative-obligatory (Fac-Ob) | Hybrid arrangement where cedant may offer risks and reinsurer must accept | hybrid reinsurance; conditionally facultative (non-standard) |
| obligatory treaty / treaty reinsurance | Reinsurer must accept all risks falling within treaty scope; automatic coverage; most common | mandatory treaty; binding treaty (imprecise) |
| proportional reinsurance / pro rata reinsurance | Reinsurer shares losses and premiums proportionally with cedant; includes quota share and surplus | profit/loss sharing; percentage sharing (imprecise) |
| quota share treaty | Reinsurer accepts fixed percentage of all losses; simple and transparent structure | percentage treaty; fixed-share treaty (less precise) |
| surplus treaty / excess of liability | Cedant retains fixed amount; reinsurer covers losses above that limit, up to treaty limit | excess of limit; variable share treaty (imprecise) |
| excess of loss (XL) / non-proportional reinsurance | Reinsurer pays only when cedant's losses exceed an agreed threshold (priority/retention); covers a specific layer above that threshold. The fundamental non-proportional reinsurance form. | layer treaty (informal); threshold reinsurance (imprecise); XL (abbreviation — spell out on first use) |
| stop loss treaty / aggregate excess of loss | Treaty covering cedant's aggregate losses exceeding annual threshold; protects against cumulative losses | aggregate XL; annual stop loss (regional) |
| retention / priority / deductible (reinsurance) | Cedant's portion of loss before reinsurer's obligation begins; reinsurer's threshold | cedant's share; acceptance level (imprecise) |
| cession / cedent | Act of transferring risk to reinsurer; also referred to as "premium cession" | risk transfer; premium assignment (imprecise) |
| retrocession | Reinsurer ceding portion of accepted risk to another reinsurer | reverse cession; secondary reinsurance (imprecise) |
| retrocedent | Company accepting ceded risk from reinsurer (reinsurer of reinsurers) | retro reinsurer; secondary reinsurer (ambiguous) |
| slip / placing slip | Preliminary reinsurance placement document circulated to potential reinsurers before formal placement | placement document; initial offer (imprecise) |
| bordereaux / bordereaux statement | Statement submitted by cedant to reinsurer detailing individual risks/claims falling within treaty; periodic reporting | reporting statement; claims statement (too vague) |
| loss reserve / claims reserve | Duplicate — see the primary row in the Claims/Reserves section above (line 292). Retained here for cross-reference with the reinsurance-specific IBNR and unearned-premium rows that follow. | — |
| reserve for incurred but not reported (IBNR) | Reserve for claims expected but not yet reported; key actuarial estimate | IBNR reserve (informal); incurred reserve (too vague) |
| premium reserve / unearned premium reserve | Insurer's reserve for future claims on written but un-earned premiums | unearned premium provision; deferred revenue (accounting term) |
| commutation | Agreement between cedant and reinsurer to settle and close all obligations; used in run-off situations | settlement agreement; final settlement (imprecise) |
| run-off | Managed wind-down of insurance portfolio, claims, and obligations; cedant may retain reserves or cede to run-off specialist | portfolio run-off; orderly closure (too vague) |
| run-off reinsurer | Specialized reinsurer assuming legacy claims and reserves to allow cedant exit from book | legacy reinsurer; portfolio reinsurer (ambiguous) |
| cut-through clause / cut-through endorsement | Reinsured allows direct claim against reinsurer if cedant becomes insolvent; unusual protection | direct claim clause; claimant bypass (imprecise) |

## Subrogation and Recovery

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| subrogation / subrogation rights | Insurer's right to pursue third-party tortfeasors liable for loss, reclaiming amounts paid to insured | recourse rights; third-party pursuit (imprecise) |
| right of subrogation | Insurer's contractual/legal entitlement to step into insured's shoes and pursue claims against third parties | subrogation entitlement; recovery right (too vague) |
| subrogation clause | Policy language preserving insurer's subrogation rights against third parties | recovery clause; waiver of rights (confuses with waiver) |
| recourse / right of recovery | Insured's or insurer's right to recover amounts paid from responsible third party | recovery action; claim for reimbursement (imprecise) |
| recovery action / recovery claim | Action taken by insurer to recover amounts from responsible third party | subrogation pursuit; third-party claim (less precise) |
| waiver of subrogation / waiver of recovery | Insurer forgoes right to pursue third-party tortfeasor; negotiated in contracts (e.g., indemnity agreements) | subrogation waiver; recovery waiver (less precise) |

## Legal and Temporal

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| limitation period (common law) / statute of limitations | Legal time limit for bringing a claim (e.g., 6 years in UK contract law; 3 years for personal injury) | prescriptive period (civil law term) |
| prescription / prescriptive period (civil law) | Time-based limitation on right to enforce claim; used in civil law jurisdictions (distinct from common law "limitation period") | statute of limitations (common law term; less precise in civil law) |
| policy period / coverage period | Duration during which policy is active and claims are covered (annual, multi-year, or claims-made) | insurance period; term (too vague) |
| inception / commencement date | Date on which policy becomes effective and coverage begins | effective date; start date (imprecise) |
| expiration / renewal / cancellation | End of policy period; may be renewed or canceled | termination; policy end (imprecise) |
| grace period | Limited time after premium due date during which coverage continues if payment not yet made | payment extension; late payment period (imprecise) |

## Miscellaneous / General Provisions

| Correct English term | Usage / meaning | Avoid |
|---|---|---|
| force majeure | See canonical definition in general-legal.md. Transport/insurance context: usually a narrower, exhaustively-listed concept; marine policies traditionally use "perils of the sea" and "act of God" as distinct named perils. | — |
| waiver | Intentional relinquishment of right or privilege; may apply to deductible, time limits, conditions, or other policy terms | remission; forgiveness (too vague) |
| estoppel | Legal principle preventing party from asserting right if their conduct waived it; insurer may be estopped from denying coverage by prior conduct | waiver by conduct; equitable estoppel (less precise) |
| materiality / material change | In underwriting, facts affecting insurer's decision to accept risk or premium level | risk-altering fact; significant change (imprecise) |
| insurable interest | Legal/financial interest in subject matter of insurance (property owner has insurable interest in property); required for valid insurance | stake in outcome; financial interest (imprecise) |
| indemnification | Holding harmless; agreement to reimburse for losses; foundational to insurance contracts | compensation; hold harmless clause (ambiguous) |
| third-party claim / third-party liability | Claim by non-insured party against insured under insured's liability coverage | liability claim; external claim (imprecise) |
| change of control | See canonical definition in finance-banking.md. Insurance context: may affect coverage continuity, particularly in D&O and W&I policies; many policies include a CoC provision automatically converting cover to run-off. | — |

## Section Headings

| Correct English heading | Avoid |
|---|---|
| SUBJECT MATTER OF INSURANCE | Object of Insurance; Insured Interest |
| COVERED RISKS / INSURED PERILS | Covered Events; Insured Risks |
| EXCLUSIONS | Not Covered; Exceptions |
| POLICYHOLDER'S OBLIGATIONS | Insured Obligations; Policyholder Duties |
| PREMIUM | Premium Payment; Cost |
| CLAIMS | Claim Procedures; Loss Reporting |
| CLAIMS SETTLEMENT | Adjustment; Loss Settlement |
| SUBROGATION | Recovery Rights; Third-Party Claim |
| TERM AND CANCELLATION | Duration; Policy Term |
| JURISDICTION | Competent Forum; Governing Law |
| MISCELLANEOUS / GENERAL PROVISIONS | General Terms; Miscellaneous Clauses |

## Notes

- **Loss vs. Claim**: Many source languages use a single term for both the event and the demand for indemnity. In English, always distinguish: "loss" = the event/damage; "claim" = the legal demand for indemnity. Translate contextually based on whether the source refers to the event or the demand.

- **Occurrence vs. Claims-Made**: These are fundamentally different coverage bases. Occurrence covers events during the policy period; claims-made covers claims filed during the policy period. Always specify which applies; premium, tail coverage availability, and tail risk exposure differ dramatically.

- **Excess (UK) vs. Deductible (US)**: Equivalent terms for the same concept (insured's first-loss retention). Use UK term for UK/EU context; US term for US context. In formal EU English, prefer "excess" or both terms together ("excess/deductible") on first mention.

- **Deductible/Excess vs. Co-insurance**: Many source languages distinguish between a fixed-amount retention (deductible/excess) and a percentage retention (co-insurance/proportional retention). Ensure the correct English term is used based on whether the retention is a fixed amount or a percentage of the claim.

- **Underwriting**: Distinct from "underwriter" (person making underwriting decisions). "Underwriting" = the process of risk evaluation and pricing; "underwriter" = the professional performing that function. Both distinct from the insurance company ("insurer").

- **Lloyd's Terminology**: If document references Lloyd's market, use Lloyd's-specific terms: "slip" (not "placing document"), "underwriter" (not "insurer" in this context), "managing agent", "syndicate", "Names", "bureau". Lloyd's is not just an insurance company; it's a market of independent underwriting syndicates.

- **W&I Insurance**: Specialized product in M&A/deal contexts. Cross-reference M&A lexicon for detailed representations and warranties terminology. W&I covers breach of seller representations/warranties post-close, protecting buyer.

- **Material Non-Disclosure / Duty of Utmost Good Faith (Uberrimae Fidei)**: These are foundational insurance principles. Non-disclosure of material facts may result in rescission (contract voided ab initio). This is stricter than general contract law.

- **Statute of Limitations / Prescription**: Time limit varies by jurisdiction and claim type. In UK common law: typically 6 years for contract claims, 3 years for personal injury. In EU civil law jurisdictions ("prescription"): typically 3 years. Always specify jurisdiction.

- **National Insurance Legislation**: When translating references to national insurance codes or regulatory frameworks, provide the official English translation of the statute name on first mention, followed by the original-language name in parentheses. Sub-lexicon provides source-language mappings.

- **National Insurance Supervisory Authorities**: Keep national regulatory acronyms (e.g., PRA/FCA in UK; BaFin in Germany; ACPR in France) and explain on first mention. Sub-lexicon provides source-language mappings.
