Legal Definitions - assecuration

Assecuration is a term primarily referring to marine insurance, which is a contract where one party agrees to indemnify another against losses related to perils of the sea. More broadly, it can also refer to insurance in general, providing financial protection against specified risks.

Assecuration is an older, more formal term for insurance. Historically, it was particularly associated with marine insurance, which protects against losses to ships, cargo, and freight during sea voyages. In modern legal and commercial language, the term "insurance" is almost universally used instead.

• Example 1 (Historical Marine Context): In the 17th century, a merchant shipping valuable silks from China to Europe would arrange for the assecuration of his cargo. This meant he purchased a policy that would provide financial compensation if the ship encountered pirates, a severe storm, or sank during the perilous journey.

  Explanation: This illustrates assecuration in its historical context as marine insurance, where a party pays a premium to protect against specific risks associated with maritime trade, ensuring financial recovery in case of loss or damage to the goods.

• Example 2 (General Insurance Context): A legal historian reviewing 19th-century commercial contracts might find a clause referring to the assecuration of a factory building against fire. This clause would outline the terms under which the factory owner was protected financially in the event of a fire destroying or damaging the property.

  Explanation: Here, assecuration is used as a general term for property insurance, demonstrating its broader application beyond just marine contexts, even though "insurance" is the standard term used today for such coverage.