A contract by which an individual or a company agree to indemnify the losses or damages happening to a ship or cargo during a voyage. For this agreement the ship-owner pays a sum in advance, called the premium, which falls to the insurer in case the ship arrives safe in a specified harbour. If the ship or cargo, however, be lost by default of the person insured, the insurer shall not be accountable. Among the Romans, the state made good losses by shipwreck, which occasioned many frauds. It is mentioned in the laws of Oleron, but was regulated under its present bearings in England in 1601.