Finding the right insurance policies can be much easier said than done. With all the specialized terms that are part of the policies, it can be difficult to know exactly what you are getting. To ensure that you invest in the right insurance policies for your specific needs, keep these terms in mind.
- Captive insurance company – an insurance company that is controlled and owned by its shareholders, also known as the policyholders.
- Sidecar – a special purpose vehicle that is designed specifically to assume certain catastrophic property risks, such as a hurricane or earthquake from a specific re-insurer. Sidecars are short term and are created to take advantage of specific high catastrophic insurance rates. Once the rates lower back down, they will not be set up.
- Barratry – severe misconduct by the crew or captain of a ship, which can include criminal and fraudulent acts that will lead to the loss or damage of a ship or the cargo. Keep in mind that barratry is different from piracy.
- Bumbershoot – excess liability coverage for policyholders who have major wet marine exposures, which are also known as ocean marine exposures. It will provide coverage for both maritime and non-maritime liability exposures.
- Hard fraud – the staging of an accident or other form of a claim. A hard fraud is well planned, intentional, and many times has a connection to organized crime.
- Alien insurance company – refers to an insurance company that is incorporated under the laws of a foreign country. These are not foreign insurance companies that will do business in different countries.
- Inland marine insurance – a broad type of coverage that will cover belongings that are in transit, no matter if it is in the air or by land.