| Salvage |
| This means about the same as it does in ordinary layman's language - to save damaged property for further use, thereby reducing the amount of any loss. |
| Salvage Charges |
| The expense of recovering property by a salvor. In Marine insurance, these charges would be properly apportioned between hull, the vessel itself, and cargo interests, in the event of a ship being salvaged. |
| Sea-worthiness Admitted Clause |
| Included in a Marine Cargo wording and exempts the policy holder from vouching for the sea-worthiness of the vessel. If you own a boat and take out Hull insurance then it is warranted that it is in proper condition, but as a purchaser of cargo insurance you have no control over the ship's condition, although you can, to a certain extent, choose on which ship you send the goods. |
| Self Insurance |
Some large industrial concerns prefer to set aside their own funds to cover any future losses, rather than insure with an outside insurer. It is a step which should never be taken without the benefit of professional advice first.Whilst day-to-day losses might not prove too much of a
financial burden to a really large company, a truly catastrophic event, such as an earthquake, could put it out of business for lack of insurance. |
| Self Inflicted Injury |
| Excluded under Medical insurances as this is intentional and not accidental. |
| Single Article Limit |
| This is a limit often imposed on All Risks policies for jewellery and household effects, stating the maximum amount allowable for any one item. |
| Slander |
| It may seem odd that insurance is available against such a deliberate act as libel and slander, bur a limited insurance market does exist, normally for the large corporations. |
| Solvency Margin |
The ratio by which assets exceed liabilities and is, to some extent, a yardstick of financial health of an insurance company. In many countries legislation exists to set minimum standards. |
| Special (or Additional) Perils |
| The collective term for risks which are commonly added to a Fire policy, such as storm, flood, earthquake, etc. |
| Specified Working Expenses |
| Factors in the calculation of gross profit under a Business Interruption policy, such as raw materials, packing, carriage and other variables. 'Working expenses' may also include wages if they are insured as a separate item. |
| Spontaneous Combustion |
| Some goods, such as copra or coal, can spontaneously heat and catch fire, when stored in bulk. Under a standard Fire policy, damage to such goods is normally excluded, unless specifically requested. However, any damage resulting to other property from such a fire is covered. |
| Sprinkler Leakage |
| Cover for property damage caused by unintentional discharge from an automatic sprinkler system. A Fire policy can be extended suitably and this is important cover to take out if your premises have a sprinkler system. Consequential losses can also be high and you need also to review whether liability for damage to third party property is necessary and adequate. |
| Standing Charges |
| These are expenses which still have to be met in full even if a business cannot earn its full income owing to fire or other damage. |
| Statute of Limitations |
| Period of time within which claims against third parties for damage or injury have to be made. |
| Storm |
You can cover damage caused by storm as an Additional Peril on a Fire policy. It is to cover damage caused by abnormal weather conditions, not damage attributable to poor maintenance or wear and tear, such as a leaking flat roof. So when you claim, it has to be clear that the storm
was indeed the primary cause of the damage. |
| Strict Liability |
| This is a liability for which the client need not prove a breach of duty owed. It is a liability imposed by law, where the defendant will be considered liable even when he has exercised reasonable care. |
| Subrogation |
| This term refers to the right which a person or company has to stand in the place of another and benefit from his or her rights and remedies. If an insurer pays a claim caused by the fault of someone else then the insurer will seek to recover the amount in the name of the insured. |
| Subsidence |
| This problem, caused when the ground under a building moves downward, often because it has dried out too much, has to be specifically included as a peril under a Fire insurance. |
| Sue and Labour |
| This clause under a Marine Hull policy allows the insured to recover the cost of his or her reasonable efforts to avert or minimise a loss. |
| Sum Insured |
| The amount stated under the policy and the maximum claim that will be paid out. |
