Insurance Jargon refers to the collective professional terminology related to cargo transportation insurance in international trade, covering specific expressions in links such as application for insurance, underwriting, and claims settlement, such as 'applicant', 'insurer', 'insurable interest', 'warehouse-to-warehouse clause', 'all risks', 'general average', etc. Usage scenarios are mainly in foreign trade contract insurance clauses, letter of credit insurance requirements, insurance policies, and claim documents. Notes: Different terms correspond to different scopes of liability and risk coverage; for example, 'all risks' does not cover all risks, but only refers to general additional risks beyond free from particular average and with particular average; when applying for insurance, the insured amount, coverage, currency, and claim location must be clearly specified. The difference from ordinary colloquial insurance terminology is that foreign trade insurance jargon has strict legal and customary definitions, governed by the Maritime Code and the London Institute of Insurance Clauses, and misuse may lead to claim failure. Therefore, foreign trade practitioners must accurately understand and use these terms to ensure document consistency and clear liability.
📝 Examples
1. According to the letter of credit requirements, the seller must insure against all risks and war risks for 110% of the invoice value, and the insurance policy should state the 'warehouse-to-warehouse clause' and use US dollars as the compensation currency. (Note: This example demonstrates the specific insurance requirements under a letter of credit, involving jargon such as coverage, insured amount, clauses, and currency.)
2. The goods suffered general average during transportation, and the consignee needs to claim against the insurer with the insurance policy, bill of lading, and general average adjustment, and pay attention to the time of transfer of insurable interest. (Note: This example demonstrates the practical application of terms such as general average and insurable interest in the claims settlement process.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner