Chapter 2C - Marine Flashcards
Marine classes
Physical damage Liability ‘other’ Onshore energy (same as in property) Offshore energy
Physical damage Insurance for vessels - types of policies
Construction - shipbuilder and eventual owner can both be covered
Physical damage to vessel - main LM wordings are named perils eg. Sea, fire, explosion
Collision liability- standard hull policy only covers 75% liability (3/4)
General average- someone makes sacrifice to save someone else and everyone chips in to pay them back
Salvage - reward for someone rescuing you when you are in trouble at sea
Sue and labour - insurer keen to minimise losses that might otherwise be claimed from the policy and will pay reasonable costs incurred in addition to any total loss user policy
Cargo insurance- three levels of cover
A - All risks
C - named perils: fire, collision, general average, jettison, overturning, sinking, discharge at a port of distress
B- all above plus: earthquake/volcano/lightning, entry of sea water, total loss of any package overboard
Cargo claims - what must the claims adjuster consider?
- where damage might have occurred
- if good were the responsibility or property of the insured at the time
- whether any exclusions may apply
When looking for oil or gas other than physical damage what are the 3 main risks?
- A blowout where oil/gas comes to surface uncontrollably
- Costs of redrilling a well should that happen
- Any seepage, pollution, contamination costs
There is a policy which covers these three
Main LM exploration policy covers..
Any well…
- being drilled or worked on until complete
- while producing (oil/gas coming out controlled)
- while shut in (May be closed temporarily if a problem occurs)
- while plugged or abandoned (stopped extracting)
Three areas covered under exploration policy…
Control of well (COW)
Re-drilling
Seepage and contamination/pollution
Additional covers:
- making the well safe
- underground control of well
- removal of wreck
- care, custody and control
LM Energy related CAR policy
Section 1:
Physical damage.
Removal of wreck.
Section 2:
Liability
Bodily injury or property damage arising out of project by law or because of contract
Expediting expenses can be added as policy extension
What is operational cover for?
Business as usual once construction has been completed and project handed over
Marine liability- shipowners liability
Many of these policies offered by Mutuals (P and I clubs)
Risks covered by Marine Liability Insurers
Cargo Crew Collision 3rd Party Liability Pollution Wreck removal Fines
What does Maritime EL cover?
Employees who work in the marine world but would not be categorised as ships crew
Professional negligence
Provided by specialist insurers which focus on certain professions only.
Surveyors, ship agents, ship brokers, naval architects, ship managers
Ports liability insurance
Property insurance, public liability, employers liability
for vessels and personnel using water areas for which port authority is responsible liability needs careful consideration
Loss of hire/earnings insurance
- works like BI
- pays out if ship damaged and can’t work
- other variations might pay out if ship has been seized and can’t be used. This could also trigger physical damage under war policy.
Specie/jewellers block insurance
- physical damage and liability to trade of gems, metals, docs and jewellery
- good covered in vaults and in transit
- exclusions such as unattended vehicles, theft, fire etc
Fine art insurance
- covers public and private collections museums and exhibitions
- covers dealers, restorers and other professions
- covers cost of repair and depreciation in value
- covers goods being moved around
- exclusions such as vermin, reframing, cyber
Cash in transit
Money being moved between banks and ATM
Key element is security
Exclusions such as collusion, or use of key or combination
Political risks insurance
- Confiscation, Expropriation, Deprivation of Assets insurance: insured may have complied with overseas regulations but assets seized etc
- insurance can cover costs incurred if a shipment which started out legal became illegal due to an embargo or sanction
Contract frustration or trade credit insurance
Performance of contract is frustrated (cannot be fulfilled)
- cover for losses arising from unilateral of a contract for no legit reason
- used when counterparty is gov organisation. Trade credit insurance used when commercial organisation
Bond risks insurance
- insurer may have to post bond to cover other party should they default on the contract
- other party may try to call bond outside terms of contract, banks require cover to be obtained in order to provide bond
Overseas Motor insurance
To satisfy reporting requirements, split into:
EU/EAA (not UK)
USA and Canada
Rest of world
Can be written for both physical damage and liability
LM use delegated uw contacts to write risks on their behalf
