Resources
Agreed value
A value agreed between insurer and insured for the purpose described by the policy, commonly relevant to total-loss settlement.
Broker
An insurance intermediary that may arrange cover for a client subject to its engagement and licensing arrangements.
Certificate of insurance
The document recording policy-specific details such as the insured vessel, dates, sum insured and endorsements.
Constructive total loss
A marine total-loss concept that may apply when recovery or repair economics meet the policy or legal threshold. Exact treatment depends on wording and law.
Excess
The amount the insured contributes to an accepted claim when the policy says an excess applies.
FSG
Financial Services Guide. A disclosure document about the financial service provider and related matters.
Hull
The vessel's physical structure. In insurance, "hull" cover can extend to machinery and equipment depending on the policy.
Indemnity
Compensation for covered loss under the policy or legal liability framework.
Lay-up
A declared period when the vessel is not being used or is stored under specified conditions.
Liability
Legal responsibility to another person for injury, property damage or other covered loss.
Market value
A value based on the market at the relevant time as defined or applied by the policy.
Navigational limits
The geographic area or distance within which the vessel is insured to operate.
PDS
Product Disclosure Statement containing key policy terms, exclusions, limits and conditions.
Salvage
The rescue or recovery of a vessel or property from marine peril. Salvage can involve specialist legal and cost issues.
Sum insured
The insured amount recorded for property cover, subject to the policy settlement provisions.
Survey
An inspection and report on vessel condition, value or suitability, depending on scope.
TMD
Target Market Determination describing the class of consumers for whom a retail product is designed.
Underwriter
The person or insurer assessing and pricing the risk and deciding the terms on which cover will be offered.
Wreck removal
Costs or liabilities associated with removing a wreck or abandoned vessel where required.
Related guides
- Product Disclosure Statement Guide for Boat Insurance
- Boat Insurer vs Broker vs Underwriting Agency
- Boat Insurance Resources: Checklists and Glossary