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.

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.

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 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).

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 board of directors, when challenged by a shareholder derivative litigation, may appoint an independent special litigation committee to consider whether the corporation's best interest is to pursue or terminate the derivative litigation against the directors.