Special Risk Insurance
Definition of "Special risk insurance"
Transfer of highly individualized loss exposures that is not based on the usual pooling principles of insurance such as risk identification and classification selection. Rather than setting up an insurance pool of standard risks, the underwriter accepts responsibility for a unique or special risk. Some examples would be insurance by Lloyd's of London underwriters for athletes, artists, and entertainers; insurance on Betty Grable's legs; or insurance for dangerous scientific experiments or moon travel.
Popular Insurance Terms
Analytical procedure to predict the failure rate of a system still in the design stage. ...
Attachment to a general liability policy thereby eliminating the exclusion of property under the care, custody, and/or control of an insured. Without this endorsement there would be no ...
Proportion of losses incurred to premiums earned. This ratio indicates the amount of a premium dollar that is being consumed by losses. ...
Transfer of property from a bailor to a bailee; for example, transferring a suit to be cleaned from the bailor (owner) to the bailee (cleaners). ...
Coinsurance requirement such that if a loss is less than $10,000 and also less than 5% of the total of insurance to cover a loss, then the insurance company will not require that the ...
Funds paid by an insurance company associated with the normal costs of doing business other than the costs of claims payments. ...
Relinquishment of rights to benefits when an employee withdraws previous contributions to a plan. An employee who had not withdrawn these contributions would have been entitled to full ...
Same as term Expiration: termination date of coverage as indicated on the insurance policy. ...
Five primary sectors of insurance coverage. Their purposes are: LIFE INSURANCE provides income to a beneficiary in the event of the death of the insured. HEALTH INSURANCE provides two types ...
Comments for Special Risk Insurance
Does special risk home ins cover flood
Apr 06, 2018 20:35:41Hey, Francisco
That's a great question... with no simple definitive answer.
The whole concept of special risk insurance is to protect assets from specific risks common to specific business and activities not covered by the ordinary homeowner's insurance policy and yes; flood is not typically covered by homeowner's insurance. However, because of climate change, flood has become something so common in the United States - independently from state and proximity to the shores and body of water - that Flood Insurance became an insurance of its own. So, since it's not an uncommon risk, it'll be hard to find a special risk insurance policy that covers flood. The insurance company will most likely tell you to buy their specific flood insurance. But who knows... maybe one or another might include it if the area is reaaaally unlikely to get flooded, like the top of a mountain or something.
Hope we helped!
Apr 13, 2018 10:25:47Have a question or comment?
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