A glossary of commonly used general insurance and risk management terms.

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IMPROVEMENTS AND BETTERMENTS – Additions or changes made by a lessee at his own cost to a building that he is occupying, which enhance its value. These become part of the realty and require special insurance consideration.

INDEMNIFY – To restore the victim of a loss, in whole or in part, by payment, repair, or replacement.

INDIRECT LOSS (OR DAMAGE) – Loss resulting from a peril, but not caused directly and immediately thereby. For example: Loss of property due to fire is a direct loss, while the loss of rental income as the result of the fire would be an indirect loss.

INLAND MARINE INSURANCE – A branch of the insurance business which developed from the insuring of shipments which did not involve ocean voyages. Exposures eligible for this form of protection are described in the nation-wide definition of Marine Insurance. Such diverse properties as bridges, tunnels, jewellery and furs can now be written under Inland Marine forms.

INSPECTION – Independent checking on facts about an applicant or claimant, usually by a commercial inspection agency or an employee of the insurer.

INSTALLATION FLOATER – Coverage for equipment and materials to be installed at job site. The form covers property while in transit to the job site and until equipment has been installed, tested and approved.

INSURABILITY – Acceptability of an applicant for insurance to the insurance company.

INSURABLE INTEREST – An interest which the insured must have in the subject matter of the insurance he buys so that if the event insured against occurs, the insured will suffer a pecuniary loss.

INSURANCE – A formal social device for reducing risk by transferring the risks of several individual entities to an insurer. The insurer agrees, for a consideration, to assume, to a specified extent, the losses suffered by the insured.

INSURANCE POLICY – Legal document issued to the insured setting out the terms of the contract of insurance.

INSURANCE TO VALUE – Insurance written in an amount approximating the value of the property insured.

INSURED – The person (or persons) whose risk of financial loss from an insured peril is protected by the policy. Sometimes call the “policyholder”.

INSURER – The Insurance Company.

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