Bail bond

A guarantee that funds (up to a stated sum) will be available to secure the release from prison of an insured motorist following a driving accident while in Spain. Any amount paid by the insurer is recoverable from the insured on returning to the UK.

Bailee

One in legal temporary possession of the property of another (the bailor). When the terms on which goods are stored are stated in a written contract, it is known as a bailment and the extent of liability is defined by its terms. A bailee has an insurable interest to the extent of such financial liability.

Barratry

A peril that may be insured under a marine insurance policy relating to wrongful acts committed by the master or crew that adversely affect the owner or charterer of a vessel.

Betterment

The amount of the increase in the value of property insured under a contract of indemnity resulting from its reinstatement or repair.

Bill of lading

A document related to the shipping of goods that forms the basis of the contract, providing identification of the goods, terms of carriage and destination. It also acts as a receipt for the goods.

Blanket certificate

A certificate of motor insurance that specifies a description of vehicles rather than specifying registration numbers. These are now used only for commercial motor insurances.

Blanket policy

(a) An insurance in which a single sum insured or policy limit applies to a number of different items without specifying any individual amounts; these are most commonly found in property insurance where several separate buildings may be insured for one overall amount.

(b) Fidelity guarantee insurance covering a number of employees with a single overall limit.

Bloodstock insurance

A general term used for insurances relating to animals that are registered in the General Stud Book and kept for the purpose of racing or breeding. Covers available include stallion infertility, loss of income and barrenness. See also Livestock insurance.

Boiler and pressure plant

A general term for items insurable under a boiler and pressure plant policy including steam boilers, economisers, associated pipework and superheaters.

Book debts insurance

A policy that provides cover against amounts owed to the business that are untraceable and therefore uncollectable following insured loss or damage.

Breach of warranty

Failure by the insured to observe the terms of a specific warranty. Such failure renders the contract voidable at the insurer's option, except for personal insurances in circumstances where failure to comply is unconnected with the loss or damage sustained.

Breakdown

(a) A class of engineering policy that covers electrical and mechanical plant for sudden stoppage from specified causes necessitating immediate repair or replacement.

(b) An extension to a motor insurance policy
providing specified roadside (and other) assistance in the event that the vehicle is incapable of being driven.

Burglary

Entering a building, inhabited vehicle or vessel as a trespasser in order to steal, inflict grievous bodily harm or rape women therein and doing unlawful damage to the building (abbreviated from the Theft Act 1968). See Aggravated burglary, Robbery, Theft.

Burst pipes

An additional peril that may be added to a fire insurance policy that covers damage caused by bursting or overflowing of tanks, apparatus and pipes. Cover does not extend to the item that burst or overflowed, and is always subject to an excess.

Business interruption insurance

Also known as consequential loss and loss of profits insurance. Cover relates to additional expenditure and trading losses following insured loss or damage. The policy is designed to provide cover until turnover has recovered to the position that would have been achieved had the loss or damage not occurred. Claims payments are limited by the sum insured and its adequacy and the chosen indemnity period.

Buy back

A term used mainly in property and business interruption insurance to describe normally excluded elements of cover that may be included at an additional premium.

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