Glossary

The Spearin doctrine is the legal principle that when a contractor follows the plans and specifications furnished by the owner, the contractor is not liable to the owner for any loss or damage resulting from the defective plans and specifications. Courts in virtually all states have adopted this rule. The name is derived from the case that established this legal principle, United States v. Spearin , 248 U.S. 132 (1918).

Specialty risks describe unusual coverage features or types of risks not underwritten by most commercial insurers.

Special acceptance refers to an agreement by a reinsurer to include under a reinsurance contract coverage for a risk that was not automatically included under the terms of the contract.

A special causes of loss form is one of the three Insurance Services Office, Inc. (ISO), commercial property insurance causes of loss forms. Causes of loss forms establish and define the causes of loss (or perils) for which coverage is provided. The Special Causes of Loss Form (CP 10 30) provides what is referred to as all risks coverage: coverage for loss from any cause except those that are specifically excluded. The other two ISO causes of loss forms (the basic causes of loss form and the broad causes of loss form) provide what is referred to as named perils coverage: coverage for loss from only the particular causes that are listed in the policy as covered.

Special crime insurance covers losses arising from the kidnap and holding for ransom of a corporate employee or from the threat to do harm to a person or to certain property if a ransom is not paid. Accordingly, special crime policies are also termed "kidnap, ransom, and extortion" insurance. The policies generally cover some or all of the following perils: Kidnapping an insured person; Bodily injury extortion (a threat to kidnap, injure, or kill an insured person); Property damage extortion (a threat to damage or pollute property, tamper with the insured's product, or reveal a trade secret or other proprietary information of the insured); Wrongful detention (involuntary confinement of an insured person); or Hijacking. The categories of loss covered by the policies include ransom money payments; wrongful detention costs (costs of attempting to locate and secure the release of the victim); in transit/delivery expenses (for confiscation, disappearance, or destruction of ransom money during delivery); other expenses (reward payments to informants, interest on loans of ransom money, fees for security consultants); judgments, settlements, and defense costs (for lawsuits by a victim or victim's family alleging negligence on the part of the employer); and death or dismemberment payments (for a victim or insured person involved in handling the incident). Most policies impose separate limits for each of these categories of loss, as well as an annual aggregate limit. Special crime insurance can be included in a commercial crime policy, written on a stand-alone basis, or may be available as part of a management liability "package" policy,

Special damages are objectively assessed monies awarded to an injured party for quantifiable, tangible losses, such as wage loss, loss of use, nursing care, and medical expenses.

A special employer is an employer involved in a borrowed servant arrangement that has been loaned a worker by another employer.

Special Flood Hazard Area (SFHA) refers to the land area covered by the floodwaters of the base or 100-year flood (an area of land that has an approximate 1 percent probability of a flood occurring on it in any given year). SFHA is a term used by the Federal Emergency Management Agency (FEMA) in the National Flood Insurance Program (NFIP). In these areas, the NFIP's floodplain management regulations must be enforced, and the mandatory purchase of flood insurance applies. Structures located in SFHAs have a 26 percent chance of suffering flood damage over the normal 30-year life of a loan, according to FEMA. Structures that are not located in SFHAs are viewed as less subject to flooding. SFHAs are identified in flood insurance rate maps (FIRMs).

A special investigative unit within an insurance company is charged with detecting and pursuing action against fraudulent activities on the part of insureds or claimants.

A special litigation committee (SLC) is appointed by a board of directors when challenged by a shareholder derivative litigation to consider whether the corporation's best interest is to pursue or terminate the derivative litigation against the directors. The SLC is a last chance for a corporation to control a derivative claim when a majority of its directors cannot impartially consider the demand. The board vests its power to determine what to do with the suit to a committee of independent directors. Generally, if the SLC recommends terminating the derivative suit, the court will defer to the recommendation if the committee shows that its members were independent, acted in good faith, and had a reasonable basis for their conclusions.