Glossary

Port risk is a type of coverage afforded a vessel that is laid up for an extended time period, normally in excess of 30 days. Coverage is provided for both physical damage and protection and indemnity.

Post-emergency recovery involves all the actions an organization takes to restore its operations and protect its personnel and other persons after a major accident. Specific actions include (1) cleaning up, protecting, and restoring damaged equipment and the infrastructure as quickly as possible, (2) contacting all key suppliers of goods and materials as well as customers to reschedule and modify shipments, and (3) establishing detailed timetables and procedures for resuming regular operations.

Post-judgment interest is interest on any judgment against the insured that accrues from the time the judgment is entered by the court to the time the actual payment is made. Post-judgment interest, when awarded as part of a judgment against the insured, is covered by the supplementary payments provision of standard general liability policies. A policy providing this coverage requires the insurer to pay interest on the entire judgment, even if that judgment is larger than the limits of liability. The reason for this is that the timing of the insurer's payment is beyond the control of the insured, and interest imposed during delays by the insurer in satisfying the judgment should be the insurer's responsibility.

Postmortem dividend refers to a policy dividend paid after the death of the insured. It is sometimes called "mortuary dividend."

A potentially responsible party (PRP) is any individual or organization—including owners, operators, transporters or generators—potentially responsible for, or contributing to, a spill or other contamination at a Superfund site. Whenever possible, through administrative and legal actions, the US Environmental Protection Agency (EPA) requires PRPs to clean up hazardous sites they have contaminated.

Power of atttorney is legal document giving authority to one person or organization to act on behalf of and obligate another.

A practice insurance policy refers to a policy that covers a professional's entire "practice," versus one that is written to apply to a specific project. The term is most commonly used in design liability insurance, where project-specific coverage is a common alternative to having design professionals provide their own insurance.

The pre-claim advice credit is a provision found in professional liability policy forms affording a reduced deductible (or retention) if, prior to the time a claim is made, the insured reports the "incident" giving rise to the claim to the insurer. The purpose of the provision is to encourage insureds to make such reports, which allow the insurer to provide advice, generally from an attorney selected by the insurer, on how to handle the situation. For example, prior to terminating an employee, if an insured contacts the insurer's employment counsel, the insured will receive instructions on how to reduce the possibility of being sued for wrongful termination (e.g., advice regarding how to conduct the exit interview, how much severance to pay, what to say to the ex-employee regarding the providing of references).

The pre-set allocation provision is found in directors and officers (D&O) liability policy forms indicating the specific percentage of each claim that will be "allocated to" (i.e., paid by) the insured and the insurer, respectively. Pre-set allocation provisions apply only to section C, entity securities coverage, of D&O policies. Most often, these percentages are either 70/30 or 60/40 (insurer/insured).

A preadmission review (PAR) is a review required by some health insurance plans prior to an insured being admitted to a hospital for a nonemergency procedure. The review of the necessity and appropriateness of such an admission is done by members of the health plan's utilization review committee.