PerilThe cause of a loss or the loss-producing agent (e.g., fire, earthquake, flood, and typhoon).
Personal Accident Insurance
Provides benefits and indemnity in case of losses to the person or physical well-being of an individual, which arise out of an accident.
Physical Hazard
Objective characteristic that increases the chance of loss (e.g., a manufacturer of highly combustible goods is a physical hazard because he increases the chance of loss).
Plate Glass Insurance
Covers against "breakage" of glass panels permanently installed at the named insured's declared premises due to any cause except as excluded.
Principle of Indemnity
An insured is compensated for losses sustained and is placed, as much as possible, in the same financial position as he had immediately before the misfortune. The insured shall be fully indemnified, but shall never be more than fully indemnified, i.e., recover more than the amount of his pecuniary loss.
Professional Indemnity (Errors and Omissions Insurance)
Covers a professional individual or firm against legal liability to compensate a third party who has sustained injury, loss, or damage caused by breach of duty as a member of a regulated profession. It includes "defense, settlement and supplementary payments" similar to those provided under CGL.
Prohibited Risks
As a rule, each company has a list of risks, which it does not want to write or to be interested about. The list is known as the list of prohibited risks. The contents of such a list would depend on the underwriter concerned. What is not acceptable to one may be desirable to the other.
Property Floater Insurance
Insures against "all risks" of direct physical loss of or damage to the insured property due to external cause, subject to conditions/qualifications set forth in the policy.
Protection and Indemnity (P&I)
P&I Insurance covers the assured for his legal liability to any other person (and such related costs and expenses). P&I insurance is provided by P&I Clubs, which are worldwide associations of ship owners who are laible for marine liability losses.
Proximate Cause (Causa Proxima)
The direct cause, the immediate cause and the cause proximate in efficiency, or the real cause that is opposite to remote cause. Causation may not necessarily be a chain; it may be a net. In other words, there may be a number of causes acting together and concurrently. Under such circumstances, the dominant or the effective cause should be found.
Pure Risk
A risk that will produce only a loss (e.g., fire)
Reinstatement/Replacement
Reinstatement/replacement refers to the right of an insurance company to reinstate or restore an insured property instead of paying cash
Risk
The uncertainty concerning loss (usually fortuitous events), with insurers dealing with risks from the viewpoint of the insured. Underwriters sometimes use the word "risk" to mean the subject matter of insurance - the person or object insured.
Robbery
The felonious and forcible taking of another person's property by violence inflicted upon the person having care or custody of a rightful access to the property, or by putting such person in fear of violence or by overt felonious act committed in the presence of such person and of which he is actually cognizant.
