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Business continuity

It is practiced logistical plan as to how an organization will recover and restore partially or completely interrupted critical functions within a predetermined time after a disaster or extended disruption.

Business risk consulting

Business impact analysis study done with the client to develop a deeper understanding of their business vulnerabilities and exposures so they can protect their key revenue streams, minimize business interruption, and preserve their reputation. In addition it also assesses critical suppliers and the exposure they represent.

Catastrophic loss

A sudden and severe disaster causing a very large loss or series of losses.

Claim advocacy

Claims advocacy is to produce outstanding customer service to the clients and guiding them through the claim process. This means acting as your advocate to obtain the best possible result for you, navigating the maze of insurer requirements and obtaining satisfactory resolution.

Clinical trials

Clinical trials is the assessment of safety and efficacy for health interventions namely drugs, devices, therapy protocols These trials can only take place once satisfactory information has been gathered on the quality of the non-clinical safety, and Health Authority/Ethics Committee approval is granted in the country where the trial is taking place.

Consequential loss

Consequential losses are indirect loss which accompanies an insured loss, such as loss of earnings resulting from a burnt down business that was insured against fire. Consequential losses are not covered by ordinary insurance policies. Consequential loss policy is a policy that provides protection against loss of profits in business due to an interruption in business consequent upon an insured peril and claim admitted under the material damage policy and specifically included on payment of additional premium.

Cyber risk

Cyber Risk are exposures like technology, digital data and computer hacker risks to the integrity of information and corporate intangible assets. As businesses continue to turn to virtual organizations, connected information systems, and outsourcing damages and security breaches to one computer can potentially lead to meaningful financial losses throughout an entire networking community.


False or unjustified injury of the good reputation of another, as by slander or libel.

Indian penal code defines defamation as:
Whoever by words either spoken or intended to be read, or by signs or by visible representations, makes or publishes any imputation concerning any person intending to harm, or knowing or having reason to believe that such imputation will harm, the reputation of such person, is said, except in the cases excepted, do defame that person.

Directors and Officers liability

It is a liability insurance for the directors and officers of a company, or to the organization(s) itself, to cover damages or defense costs in the event they suffer losses as a result of a lawsuit for alleged wrongful acts while acting in their capacity as directors and officers for the organization.

Downstream energy

Down stream energy assets are refineries, petrochemical plants, gas companies and fossil fuel power stations.

All types of onshore production facility including:

– refineries and associated processing risks
– upstream petrochemicals (e.g. olefins and
aromatics), gas or naptha based
– downstream petrochemicals (e.g. PE/PP, VCM)
– LNG Plants
– gas separation
– petrochemical based fertilisers.

Onshore storage and transmission risks including:
– stabilisation/treatment of gas and crude
– onshore pipelines
– tank farms for crude, distribution or products.

Errors and omission

Errors and omissions is a claim for financial injury by alleging a product failed or the company failed to perform services, causing a loss of use of tangible or intangible property.

Estimated maximum loss

A financial sum representing the largest likely loss from a peril, assuming that protection and detection devices fail (in the case of non-sprinklered risks) but that emergency services attend within a reasonable time. Also known as probable maximum loss (PML).

Fleet risk management

A solution that combines risk management expertise with fleet management experience to reduce accident and damage incidence rates and their associated costs.

General average

The principle in maritime law that when a sacrifice is made or expenses are voluntarily incurred in time of peril expressly to preserve a venture as a whole, the loss or expense is to be shared among all interests in the venture in proportion to the value of each.

Hull insurance and machinery

A marine Hull cover that covers damage to the vessel, machinery and appurtenances - such as fixtures and fittings and nautical equipment - caused by all navigation peril and external contingencies. It also covers collision damage to third parties.

Kidnap and ransom

Specialist insurance provided to pay a sum of money up to a chosen limit to secure the release of the insured person following kidnap, extortion, detention or hi-jack.


Libel is normally a written, broadcast, or otherwise published words means of communication of a statement that makes a claim, expressly stated or implied to be factual, that may give an individual, business, product, group, government, or nation a negative image.

Media liability

Media Liability is against claims arising out of the gathering and communication of information. Media Liability Insurance provides very valuable coverage against defamation and invasion of privacy claims as well as copyright and/or Trademark infringement.

Over insurance
An insured has bought so much coverage that it exceeds the actual cash value (or the replacement cost) of the risk or property insured. For the insurance company over insurance might constitute a moral hazard.


The unauthorized use or close imitation of the language and thoughts of another author and the representation of them as one's own original work.

Product Recall

Product recall is a request on discovery of safety issues ,to return to the manufacturer a defective batch or an entire production of a defective product. This is to limit liability for corporate negligence and to improve or avoid damage to publicity.

Recalls are costly which entail replacing the recalled product or paying for damages caused in use. This is possibly less costly compared to indirect cost of loss of brand name and reduced trust in the manufacturer.

Project cargo

Project cargo includes freight that is voluminous, either by weight, size or quantity, or composed of complex components that must be disassembled, shipped and then re-assembled.

Protection and indemnity

Protection and indemnity insurance, commonly known as P&I, is marine insurance against third party liabilities and expenses arising from owning ships or operating ships as principals. More than 90% of oceangoing ships today are insured by the mutual P&I Clubs that are members of the International Group of P&I Clubs.

Risk curve

Supply chain management

Supply chain management is the art of integrating supply and demand management within and across companies. It encompasses the planning and management of all activities like sourcing, procurement, conversion, and logistics management by coordination and collaboration with channel partners like suppliers, intermediaries, third-party service providers, and customers.


Slander refers to a malicious, false and defamatory spoken statement or report.

Total cost of risk

The Total Cost of Risk (TCOR) is an equation that captures the total cost of self-retained losses, risk management administration expenses and insurance premiums.
Organisations can use it to identify the imbalances in their risk management approach and strive for cost-savings. They may find, for example, that their insurance premiums are not low enough commensurate with their willingness to accept losses.
Overall, TCOR encourages organisations to look at risk management on an integrated basis.

Transfer of Risk

The shifting of risk through insurance or securitization of debt because of risk aversion.
The reduction of risk to a position by buying an insurance policy or taking an offsetting position. For example, a person may reduce the risk of loss due to medical expenses by buying health insurance. Likewise, a person may reduce the risk of loss to a long position by entering an equal but opposite short position.

Under insurance
Under-insurance occurs when the amount for which the property is insured, is less than the value of such property.
Remember to insure your property for its replacement value and NOT for the purchase amount! (Unless it is new property!)
In the event of underinsurance condition of average will be applied by the Insurer wherein Indemnity will be on the formula of Loss X Sum Insured value of property / Actual value of property.

Upstream energy

Upstream Energy are assets engaged in the exploration and production phase of the energy industry.

Offshore assests may be unmanned single structures to multi-platform complexes, major trunklines & intra-field pipeline networks, subsea completions and offshore mobile drilling units.
Onshore assets may be land rigs and oil lease property.

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