A fundamental principle of insurance based on fairness. The law of Indemnity says that you can only recover on an insurance policy what you have actually lost, no more no less. In practice most claims are settled by the payment of cash. The amount is however agreed with you as being the value of your loss. There are various insurances that modify this principle both to your advantage but also negatively. Refer to the note on "Excesses" or "Deductibles". If in doubt, please discuss your requirements with us.

Insurable interest is a basic requirement of any contract of insurance; it can be defined as the legal right to insure arising out of a financial relation-ship, recognized at law, between the person insured and the subject-matter of insurance. This relationship is assumed to be one where you benefit from the safety of the subject matter of the contract or will be prejudiced by it loss or damage. The subject-matter of the insurance contract is the name given to this pecuniary interest which a person has in property that can be lost or damaged or legal liability that can arise for an accident to a visitor due to a defect in premises.

This is the Statute that regulates the conduct of insurance in the Cayman Islands.

These will be found elsewhere in these notes and include "Insurable Interest", "Indemnity", "Utmost Good Faith", "Contribution", "Subrogation" and "Proximate Cause".

These are the companies, registered under the Insurance Act, who actually carry the risks that you insure and who are responsible for paying claims.

Similar to theft, legally used to describe the act of taking property which does not belong to you whilst you are lawfully on the premises which contains the property, without any violent or forcible entry. This risk is not always covered on insurance policies. If it is a serious risk for you, please discuss it with us.

Insurances on legal liabilities frequently require the intervention of a lawyer and sometimes litigation. Insurers will meet the necessary legal fees where they have agreed that they are necessary. However, the customer does not have the right to engage a lawyer and send the bill to Insurers.

This means responsibility, usually of a legal kind, where you have caused injury or damage to another by some act of carelessness. Liability insurances are designed to protect you against the different ways in which liability can arise. These include Public, Products, Employers and Personal liabilities. Please refer to separate notes on these.

This is the maximum amount that your Insurers will pay for any one claim or number of claims arising from one insured. Its application will vary on different policies; it is most common on insurances that cover your legal liability. We can advise you on desirable limits to protect you, based on current Court awards.

When brokers or insurers use this term they mean the Caymanian insurance market as opposed to the international or overseas markets, such as London, that are used for some very large risks.

This is a popular expression for inspection of risks, such as factories, by insurers in connection with their underwriting to establish the premium to charge.

Damage to property caused by someone other than the person who is insured which is done deliberately to cause damage or destruction. Normally covered on modern property insurances.

A type of insurance used mainly for production machinery in factories. It is additional to the normal cover on damage that is available. As its name suggests it insures the damage caused by unforeseen breakdown of a machine. It does not cover lack of maintenance or normal wear and tear. Cover is also available for some of the consequential losses following breakdown.

The oldest form of insurance which is concerned mainly with the insurance of vessels that travel on water and their cargo.

This is a general term used by Insurers to refer to physical damage to property by the various risks that may be insured.

As part of Health insurance schemes certain specified Medical costs are insured. Sometimes referred to as medical benefits.

A class of insurance that includes private cars, motor cycles and commercial vehicles of all types. There are different levels of cover available. We can advise on suitability and cost for you.

As opposed to our local markets it is sometimes necessary, with official permission, to arrange insurances on one of the international or overseas markets, such as London or New York.

Retirement plans or savings schemes are known as pension insurance. They provide benefits at a specified time in the future. They are frequently arranged, for example as a group pension plan to lock in the benefits so that the beneficiary, after a certain period, can only take the benefits at retirement age.

A type of insurance, often added as an extra benefit to other insurances whereby benefits are provided for accidental death, disablement and long and short-term disability. Does not cover sickness, which is a different type of insurance.

This is a branch of legal liability insurance that relates to products that you manufacture, sell or supply.

If you wish to claim on your insurance policy the loss or damage must be "proximately caused" by a risk that is insured. Think of a line of dominoes standing up face to face. If you push the first one it will knock over the second one and you will have set of a chain reaction. As long as the first action in the chain is covered all subsequent damage will be covered too. There are some exceptions; here you must consult us for precise advice, relevant to your situation.

An insurance that protects you against your legal responsibility for injury to other people or damage to their property. There are several different policies designed to meet specific needs, business, professional and personal. They usually include legal costs related to an action against you for which your policy provides protection. We can advise you as to which one is appropriate for you.