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Glossary Of Terms

Certificate or Schedule of insurance:
A document which evidences the existence of insurance cover.

Where you act as your own insurer for a specified proportion of the sum insured.

Condition :
See Subjectivity

An alteration in writing to the terms of your insurance policy.

Excess / Deductible:
An amount to be deducted or collected in the event of any claim. If the loss is less than the amount of the excess then you must meet the cost of the claim.

Financial Conduct Authority:
The regulatory body which regulates the general insurance industry of which Topsail Insurance is authorised and approved.

A non-binding statement by an underwriter of the likely level of premium that he would charge to underwrite a risk, subject to the provision of additional information.

Insurance Premium Tax:
This is the government tax applied to insurance policies issued in the United Kingdom, the tax payable on insurance premium varies depending on where the vessel is registered or where the person is domiciled.

A person who is insured under a contract of insurance. Where there is one insured this person may also be referred to as the policyholder.

Period of Insurance:
The period shown in your Schedule or Certificate of Insurance.

Personal Accident:
Bodily injury as a result of an accident.

The wording of a contract of insurance.

Proposal form:
A standard form which contains a number of questions which you are required to answer for the purpose of enabling the insurer to decide whether or not it is willing to grant cover and, if so, the terms on such cover.

A statement of the premium based on the information supplied by you. A quotation may be subject to the provision of further information. If a quotation is accepted, then subject to the satisfaction of any conditions that may attach to the quotation, an insurance contract will be made.

Subject to or Subjectivity
Where there is a subjectivity or a condition or the words ‘subject to’ are detailed on your insurance certificate you are required to comply with that subjectivity. If it is not complied with, the insurer may disclaim all liability in respect of a claim that occurs which is related to that subjectivity.

See Insurance Premium Tax

War, civil disturbance and terrorism:
includes international war, any act of hostility by a nation or state against another, civil war, revolution, rebellion or insurrection, detonation of a derelict mine, torpedo, bomb or other weapon of war, labour disturbances, acts of terrorists and acts of persons in furtherance of a political motive.

Where a warranty may be detailed on your yacht certificate you are required to comply with that warranty. If it is not complied with, the insurer may disclaim all liability under the policy from the date of the breach, regardless as to whether the subject of the warranty was material to the underwriting or any subsequent loss.


Bareboat Charter:
A vessel that is hired and sailed by the person hiring the vessel without the owner or professional crew being onboard.

Constructive total loss:
A constructive total loss arises where the vessel is reasonably abandoned to the insurer by the insured on account of its actual total loss appearing unavoidable or because it could not be preserved from actual total loss without an expenditure that would exceed its value.

Excess /Deductible Waiver (optional):
Subject to payment of the additional premium, your excess or deductible will not apply if you make a claim under your policy

Inland Craft:
A vessel sailing on inland waters of United Kingdom and Northern Europe.

Laid up:
A period of time in which the insured and insurer agree the vessel will be laid up ashore during the policy period. This could be during the winter, or at a particular time of the year such as within hurricane or tropical cyclone areas.

Marine Survey:
A marine survey is a type of claim, condition and or valuation survey carried out on your vessel by a licensed marine surveyor.

An acronym for Mast, Sails, Spars and Rigging, specific to insuring racing risks.

No Claims Bonus:
Each year that you are insured without making an insurance claim, you earn a No Claims Discount applied to the following year. This can be transferred from a previous policy and the maximum entitlement offered by some of our insurers is 25%.

Personal effect:
Personal items, that do not form part of the Vessel’s inventory and nor normally sold with the Vessel, while used in connection with the Vessel.

Protected No Claims Bonus (optional):
Subject to payment of the additional premium, your No Claims Bonus will not be reduced if you make a claim under your policy.

Racing Risks:
Racing risks is an extension to your vessel insurance policy which enables you to be covered for any damage that occurs whilst racing your vessel.

Skipper Charter:
A vessel that is hired along with the owner or their professional skipper or crew who remain in control of the vessel.

Super yacht:
A super yacht is any yacht over 24 metres (79 feet) in length.

A small vessel, such as a dinghy, towed or carried by a yacht or ship. Generally used to get to/from the shore and vessel.

Third Party Liability:
This covers your liability to third parties (someone other than the insured) for damage, injury or loss caused by you to another person or vessel or entity.

Total loss:
Where the subject matter of an insurance is lost, destroyed or damaged beyond repair.


Excess Waiver Protection:
If you hire or charter a vessel you may be required to pay a ‘deposit’ or cover the owner’s insurance excess or deductible in the event that you cause damage to the vessel. The Excess waiver Protection covers this excess or deposit.

Long Term Secondment:
Applicable to Yachtsman’s Travel Insurance only, a trip with a duration of 6 months or more.

Personal effects:
Baggage and personal items taken with you for the purpose of going on a trip.

Personal Liability:
Covering you in respect of your legal liability for bodily injury to third parties and/or for damage to their property arising from an accident occurring during the Trip.

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