A contract under which the insurer agrees to compensate the insured party for losses specified in the contract (e.g. theft, freight loss). Insurance is a form of risk management, as risk is transferred from one organisation to another in exchange for payment, i.e. the insurance premium. When seeking to insure against loss, the buyer has a duty of ‘utmost good faith’ to advise the insurer of all relevant facts so that the insurer can reach a balanced judgement on the risk involved. See also Risk.

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Discover the world’s largest Glossary of Procurement terms

With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.