BASIC RATE – The standard charge for a given type of risk.

BASIS OF VALUATION – In marine insurance, a clause inserted in an open cover policy defining the basis of an acceptable Insured value in respect of shipments that are declared ‘late’. The basis normally includes the invoice cost of the goods plus insurance charges, freight and a fixed percentage representing the profit to the seller.

BI/PD – Bodily Injury / Property Damage Liability Coverage.

BILL OF LADING – A shipping document prepared by the shipping agent and containing a complete description of the goods to be shipped. It acts as the carrier’s receipt to the shipper for his goods.

BILL OF SIGHT – When goods arrive at Customs without documents or available knowledge of full details, the Customs Authorities require that the importer completes a bill of sight before he can obtain release of his goods.

BINDER – An agreement between an Insurer and another, termed a ‘Coverholder’, whereby the Coverholder is authorized to accept proposals for insurance contracts from third parties and to bind the Insurer to such contracts.

B/L – Bill of Lading.

BLDG. – Building.

BLOW OUT – Peril encountered in offshore oil-drilling rig insurance. Occurs when pressure below the seabed exceeds the drilling column pressure and literally blows out the column.

BOAT – A small craft or pleasure vessel.

BODILY INJURY – Term used in Auto and Casualty policies meaning physical injury, including sickness, disease, mental injury, shock or death.

BODILY INJURY LIABILITY – Pays when an Insured person is legally liable for bodily injury or death caused by your vehicle or your operation of most non-owned vehicles. This coverage also pays for your legal defence if you are sued.

BREACH OF CONTRACT – Where one of two parties to a contract breaks one of the conditions of the contract whereby the aggrieved party suffers a wrong or injury, the aggrieved party has the right to sue for damages for breach of contract.

BREACH OF WARRANTY – Whether or not it affects a claim on the policy the Insured must comply with all warranties in the policy. In the event of breach of warranty by the Insured the Insurer is, automatically, discharged from all liability from the date of the breach; but the Insurer remains liable for Insured losses occurring prior to that date.

BROAD FORM – Any of the commercial or personal lines property forms which provide coverage on a named perils basis. This form normally adds the Extended Coverage and Vandalism and Malicious Mischief coverages.

BROKER – An independent person or firm who acts on behalf of the Insured in placing business with the Insurance Company. Responsible for the collection of premiums but having no authority to give coverage on the Insurance Company's behalf without their specific agreement. Compensation is on a commission basis.

BROKER’S SLIP – The slip of paper used by an insurance Broker for concluding the contract (i.e. placing the risk) and/or for subsequent administrative procedures. It is signed by the Insurer who ‘underwrites’ his name (i.e. signs the slip) indicating the proportion of the risk (usually expressed as a percentage) that he has accepted.

BULLION – Gold or silver valued by its weight, ignoring its coin value.

BUILDER’S RISK - Insurance against loss to buildings or specified structures during the course of their
construction. Coverage may or may not include the material Involved in their construction.

BUREAU VERITAS – A French Classification Society for vessels.

BURGLARY – Unlawful removal of property from premises involving visible forcible entry.

BUSINESS INTERRUPTION – Insurance against business expenses and loss of income resulting from fire or other Insured peril.

BUYER’S INTEREST – The insurable interest of the buyer of insurable property.