Vocabulary insurance

Vocabulary: Average: A loss incurred by a cargo owner on an ocean voyage. General average: It involves alll the cargo owners on board. Particular average: partial loss incurred by a cargo owner on an ocean voyage (falls to the owner responsability/insurance). Barratry: Act of disobedience or willful misconduct by the capitain or the crew og a ship that causes damage to the ship/cargo. Peril: Event that brings about loss. Hazard: Situation that increases the probability of a peril and therefore of a loss. Jettison: Act of trowing overboard part of the cargo (fuel of airplane) in attempt to lighten the ship. Risk: Chance of a loss. Speculative risk: Chance of a loss as well as of a gain, Pure risk: the chonce of a loss only (can be insurance). Objective risk: CHance of a loss that can be accurately calculated (empirical data). Subjective risk: the perceived risk of a loss by an individual company.