The Shipowners Club

1
The Shipowners Club

• Club Cover

2
Club Cover

• Standard PI Cover
• Liabilities in respect of seamen
• Liabilities in respect of passengers
• Liabilities in respect of persons other than
  seamen
• or passengers
• Diversion expenses
• Liabilities and expenses in relation to
  deserters, stowaways
• and refugees
• Liabilities for life salvage
• Collision with other vessels
• Loss of or damage to property
• Pollution
• Towage
• Removal of wreck
• Quarantine expenses
• Cargo liabilities
• Unrecoverable general average contributions
• Ships proportion of general average

• Omnibus Rule
• Freight, Demurrage Defence
• Charterers
• Protection Indemnity
• Damage to hull
• Bunkers
• Additional Covers
• Liabilities arising under certain indemnities
  and contracts
• Extended towage cover
• Contractual removal of wreck
• Specialist operations
• Liabilities associated with a Salvage vessel
• Naming and waiving of Charterers and others as
  
• co-insured

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Additional Covers

• Basic Club cover can be expanded by a number of
  additional covers to suit a particular Members
  needs. These covers include salvors
  liabilities, towage, charterers liabilities,
  contractual liabilities, liabilities arising out
  of specialist operations, freight, demurrage and
  defence cover and 4/4ths collision liabilities
• In addition to the P I cover provided through
  entry into the Shipowners Club, we can also
  offer assistance in other areas that can impact
  your day-to-day vessel operations, such as the
  review of Charter Parties, Crew Agreements and
  Offshore Service Contracts

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Salvors Liabilities

• In most cases liabilities arising out of
  salvage operations are not covered by basic PI
  cover. The Club can however provide cover for
  these liabilities by special agreement
• In addition to reinstating basic PI cover we
  can also include salvors liability for oil
  pollution caused during salvage operations, even
  if the pollution emanates from the vessel being
  salved. Cover can also be extended to their
  liabilities which are unconnected with the
  insured vessels, provided that they arise in
  connection with a Members business as a salvor

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Towage Liabilities

• For insurance purposes, there are three kinds of
  towage
• Customary towage of an insured vessel, e.g.
  towage for the purpose of entering or leaving
  port (harbour towage) or towage of dumb barges
• Cover for customary towage is part of basic PI
  cover
• Towage of an insured vessel other than customary
  towage, e.g. dead ship towage to repair port
• Liabilities arising out of this type of towage
  are only covered by special prior agreement
• Towage by an insured vessel
• Towage as part of an attempt to save life or
  property at sea is part of the basic P I cover
  for all vessels other than dedicated salvors.
  Liabilities arising out of any other towage by a
  Members vessel can only be covered by special
  prior agreement

6
Extended Towage Liabilities

• By special agreement cover may be extended to
  include liabilities and expenses arising out of
  the loss of, damage to or wreck removal of the
  towed vessel or object provided that the tow is
  not under the same ownership or management as
  the towing vessel
• Cover can also be extended to include loss of,
  damage to or wreck removal of cargo or property
  on board the tow

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Charterers Liabilities

• The charterer of a vessel is often exposed to
  the same risk as the vessel owners, In addition,
  they may have further liabilities which arise
  out of loss or damage to the ship and its
  bunkers. The Club can provide cover to
  charterers which includes all the basic cover
  available to owners but extended to include any
  liability the charterer may have to indemnify
  the owner of the vessel in respect of these
  risks
• Charterers cover also provided a Member with
  cover for any liability for loss or damage to
  the insured vessel and for any loss they may
  incur as a result of loss or damage to bunkers
  or their own property on board the insured vessel

8
Contractual Liabilities

• Basic PI cover will protect a Member against
  claims for which they are legally liable. It
  does not however extend to additional liabilities
  which arise solely from the terms of a contract
  which a Member voluntarily accepts
• If for commercial reasons Members have to enter
  into contracts where they accept liabilities or
  give indemnities which extend their exposure,
  the Club can usually arrange special cover to
  protect them

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Liabilities Arising Specialist Operations

• It is a fundamental principle of any mutual
  insurance system that each participant should
  face broadly similar liabilities. The basic cover
  provided by the Club addresses risks that face
  every vessel owner and operator. There are
  however a number of risks peculiar to specialist
  vessels which are not common and which require
  special additional cover
• Members who are engaged in operations of a
  specialist nature such as pipe laying , pile
  driving, dredging, construction, core sampling,
  oil spill response, etc. should contact the Club
  to ensure that liabilities arising out of these
  operations are adequately covered

10
Freight, Demurrage Defence

• Basic PI cover protects Members from claims
  made against them by third parties. In the
  course of operating vessels Members occasionally
  find themselves involved in disputes with
  charterers and suppliers of services to the
  vessel. FDD cover offers members support for
  legal costs and other expenses incurred in these
  disputes

11
Collision Risks

• Basic Club cover is designed to integrate with
  the collision cover provided in the hull and
  machinery policies issued by Lloyds of London
  and other major insurers. Those hull policies
  provide cover for 3/4ths of the damage caused to
  the other vessel and cargo or property thereon.
  In addition to covering the remaining 1/4th of
  the physical damage risk, Club cover includes
  any liability for death or personal injury
  arising out of a collision and for any pollution
  which is caused thereby

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Additional 3/4ths Collision Risk

• Many owners find it more convenient to place
  the entire collision risk with the Club. This
  has a number of advantages including splitting a
  Members property risk and liability risk into
  separate and distinct policies. On a more
  practical note, having all the collision
  liabilities placed with the Club simplifies
  claims handling, particularly if it becomes
  necessary to issue security to release a vessel
  from arrest. When liability is divided between
  hull and machinery underwriters and the Club, we
  are unable to provide security until hull and
  machinery underwriters provide counter security
  for their interest