Offshore – Specialists vessels require special cover
In the offshore industry vessels of all sizes, shapes and capabilities come together to individually perform their special tasks and services, ensuring offshore projects are completed successfully.
Given the specialist services, unique working environment and location in which activities are performed, tailor made contracts are drafted to define the specific tasks and duties of each party involved in the chain of contractors.
These contracts can become quite complex. Not only because of the specialist nature of the activities performed and subsequent liabilities, but also due to the fact that the various parties involved are companies of all sizes and (financial) strengths. Each operator strives to maximally secure their individual position towards their contract partners.
These special features make the offshore industry one of the most complex industries to service from an insurance point of view. Contractual stipulations, in relation to the division of liabilities and indemnities given between parties, often go beyond the normal scope of cover provided by the “standard” P&I insurance arrangements. They require specialists operations and contractual cover extensions.
For many years already we provide tailor made insurance solutions to ensure our clients liability position is safeguarded well, thus allowing our clients to focus on their core business and operational success.
Owners
Charterers
P&I insurance covers the liabilities resulting from operations of the vessel and has originally been initiated by ship owners. Apart from this category, also other operators like managers and charterers can be covered for these risks.
P&I insurance covers Assured’s liabilities such as (but not limited to):
• Personal injury of seamen, passengers and others on board
• Loss or damage of cargo
• Pollution
• Wreckremoval
• (Excess) collision with other vessels and property
• Towage
• Property on board
P&I insurance covers Assured’s liabilities such as (but not limited to):
• Personal injury of seamen, passengers and others on board
• Loss or damage of cargo
• Pollution
• Wreckremoval
• (Excess) collision with other vessels and property
• Towage
• Property on board
Freight, Demurrage & Defence covers the legal expenses of the Assureds to defend their position in disputes which do not fall under the P&I insurance. These can be disputes in respect of Charter Parties, Bills of Ladings, Contracts of Carriage and disputes related to demurrage, freight payment, etc. The insurance covers the legal expenses in respect of these proceedings, not the actual amounts under dispute.
The F.D. & D. insurance will have a deductible to be borne by the Assureds themselves. Such a deductible can be covered under the Legal Expenses cover, subject to the condition that also F.D. & D. cover has been taken out.
The conventional P&I insurance covers the legal liabilities of the assured. Legal liabilities arise from national laws and international conventions and depend on the trade and the operation of the vessel. The Clubs / insurers expect their members / assureds to conclude contracts based on unaltered conditions for certain trades and operations.
Especially in the Offshore industry contracts it frequently happens that parties deviate of the standard liability regimes.
Any amendment to the standard accepted conditions need special attention and where necessary additional cover has to be arranged. Post & Co will be pleased to assist in arranging cover for such contractual liabilities.
Especially in the Offshore industry contracts it frequently happens that parties deviate of the standard liability regimes.
Any amendment to the standard accepted conditions need special attention and where necessary additional cover has to be arranged. Post & Co will be pleased to assist in arranging cover for such contractual liabilities.
For many years Post & Co provides the possibility for individual inland shipowners, who have placed their P&I insurance within our own facility, to extend their insurance package with a general liability insurance. The background for providing this insurance originates from the day to day practice where, on a regular basis, we are confronted with claims which have occurred in the borderland of P&I and general liability. Our general liability insurance covers claims by third parties for both bodily injury and property damage arising from the actions of the insured in its capacity as owner / operator of barges.
Next to the War & Strikes insurance it has become common practice to also insure against the consequences following from a Kidnap & Ransom demand (amongst others as a result of an attack by pirates).
This type of insurance is closely connected to the War & Strikes insurance. It basically covers the ransom and associated expenses incurred following a kidnap incident for private individuals in any country in the world (not covered under a War & Strikes risks insurance).
The Kidnap and Ransom insurance is designed to specifically meet the needs of vessel owners in dealing with a host of demands by the kidnappers which requires swift action /response. Among the benefits are kidnap negotiators on hand to assist with negotiation and delivery of any ransom. The policy normally covers all related costs incurred specifically to secure the prompt safe release of the vessel, crew and cargo.
Various limits, area’s of cover and duration of the policy are available to offer tailor made solutions. One can understand that the premium for the areas mentioned in the List of Areas of Perceived Enhanced Risk (listed areas) are significant higher than for those areas which are not listed.
This type of insurance is closely connected to the War & Strikes insurance. It basically covers the ransom and associated expenses incurred following a kidnap incident for private individuals in any country in the world (not covered under a War & Strikes risks insurance).
The Kidnap and Ransom insurance is designed to specifically meet the needs of vessel owners in dealing with a host of demands by the kidnappers which requires swift action /response. Among the benefits are kidnap negotiators on hand to assist with negotiation and delivery of any ransom. The policy normally covers all related costs incurred specifically to secure the prompt safe release of the vessel, crew and cargo.
Various limits, area’s of cover and duration of the policy are available to offer tailor made solutions. One can understand that the premium for the areas mentioned in the List of Areas of Perceived Enhanced Risk (listed areas) are significant higher than for those areas which are not listed.
War & Strikes risks insurance in basis covers physical damage and/or destruction of a vessel caused by or as a result of War-like acts such as but not limited to war, civil war, revolution, rebellion, capture, seizure, riots, civil commotions, confiscation, piracy, mines, torpedoes or other derelict weapons of war etc. War & Strikes risks clauses, however, exclude Kidnap & Ransom, which can be covered under a K&R policy.
War & Strikes risks insurance is a separate policy and finds its origin in the F.C. & S. (Free from capture and Seizure) and War & Strikes related exclusion stipulation on the Hull & Machinery policies
Nowadays, piracy is one of the first perils which comes up when talking about War and Strikes risks cover. This as, although piracy is in fact still mentioned as a named peril on the various Hull & machinery policies, in practice piracy risks have now globally been excluded from the Hull & Machinery policies and transferred to the War & Strikes risks insurance policy.
It should further be noted that cover can be extended to include P&I (including Crew) and War Loss of Hire. The P&I aspect and especially the crew extension is of importance. This as the vast majority of P&I Clubs/Underwriters provide War P&I coverage in excess of the Hull & Machinery value as deemed to be insured under the War & Strikes risks insurance. Not effecting a P&I war extension can as such have severe financial consequences.
There are trading area restrictions by means of the Navigation Limitations – Hull War, Strikes, Terrorism and Related Perils Endorsement (JW2005/001A) dated 20th June 2005 in conjunction with the current List of Areas of Perceived Enhanced Risk (Listed areas) as may be published from time to time in London by the Joint War Committee. Effectively this excludes cover for vessels trading to area’s for which separate cover on special terms and conditions is to be arranged.
We can assist in setting up War & Strikes risks insurance arrangements and all relevant extensions where required.
War & Strikes risks insurance is a separate policy and finds its origin in the F.C. & S. (Free from capture and Seizure) and War & Strikes related exclusion stipulation on the Hull & Machinery policies
Nowadays, piracy is one of the first perils which comes up when talking about War and Strikes risks cover. This as, although piracy is in fact still mentioned as a named peril on the various Hull & machinery policies, in practice piracy risks have now globally been excluded from the Hull & Machinery policies and transferred to the War & Strikes risks insurance policy.
It should further be noted that cover can be extended to include P&I (including Crew) and War Loss of Hire. The P&I aspect and especially the crew extension is of importance. This as the vast majority of P&I Clubs/Underwriters provide War P&I coverage in excess of the Hull & Machinery value as deemed to be insured under the War & Strikes risks insurance. Not effecting a P&I war extension can as such have severe financial consequences.
There are trading area restrictions by means of the Navigation Limitations – Hull War, Strikes, Terrorism and Related Perils Endorsement (JW2005/001A) dated 20th June 2005 in conjunction with the current List of Areas of Perceived Enhanced Risk (Listed areas) as may be published from time to time in London by the Joint War Committee. Effectively this excludes cover for vessels trading to area’s for which separate cover on special terms and conditions is to be arranged.
We can assist in setting up War & Strikes risks insurance arrangements and all relevant extensions where required.
Certificate of Financial Responsibility (Water Pollution) – abbreviated COFR
For many years already we assist operators to obtain a COFR where required. For this purpose we have established good contacts with the various market parties involved as well as the U.S. Coast Guard.
Which vessels require a COFR
Vessels of 300 GT and above, calling at waters under U.S. jurisdiction are required to have a valid Certificate of Financial Responsibility (Water Pollution) on board.
What is a COFR
A COFR is a Federal Certificate issued by the US Coast Guard and is to evidence that operators can meet their obligations in case of a water pollution in accordance with certain US pollution laws.
Non Compliance with Regulations
In case of any calls made without a valid COFR certificate on board, the vessel involved can be detained or denied access to such waters with operators risking huge fines for non compliance with U.S. legislation.
Waters under US Jurisdiction – not only U.S. waters/EEZ
This requirement involves waters under U.S. jurisdiction, which not only includes the EEZ/waters of mainland U.S.A. but also waters of Dependencies like Puerto Rico, Guam, American Samoa etc.
Other COFR State Certificates
Next to the (Federal) COFR, individual U.S. States also have their own COFR requirements. The States California and Alaska are examples of such States. Also for these State COFR certificates we can provide assistance where required.
Other Certificates
Next to the above COFR’s there may be other certificates/arrangements required. From a practical perspective, given our involvement with vessels calling at US waters, we have obtained quite some experience in assisting our clients to obtain the most relevant certificates in our field, which next to COFR’s, include International Carrier Bonds as well as a COFR for passenger vessels – FMC Certificate(s).
The latter dedicated towards passenger vessels performing voyages to waters under U.S. jurisdiction. These vessels, subject to a number of parameters, have to evidence that the Operators are capable of meeting their obligations towards these passengers in either performing the voyage and delivering the passengers at final destination or in meeting liabilities following personal injury, death or sickness of passenger(s).
Operators responsibility
Although we try to assist our clients as much as possible, it is eventually up to owners/operators of vessels to establish which certificates are required and obtain these. Some certificates require quite some information to be disclosed and timely application as well as efforts from the side of operators to be taken given the substantial framework of regulations and requirements applicable.
Should you require any assistance following a scheduled call at waters under US jurisdiction therefore please feel free to contact us.
For many years already we assist operators to obtain a COFR where required. For this purpose we have established good contacts with the various market parties involved as well as the U.S. Coast Guard.
Which vessels require a COFR
Vessels of 300 GT and above, calling at waters under U.S. jurisdiction are required to have a valid Certificate of Financial Responsibility (Water Pollution) on board.
What is a COFR
A COFR is a Federal Certificate issued by the US Coast Guard and is to evidence that operators can meet their obligations in case of a water pollution in accordance with certain US pollution laws.
Non Compliance with Regulations
In case of any calls made without a valid COFR certificate on board, the vessel involved can be detained or denied access to such waters with operators risking huge fines for non compliance with U.S. legislation.
Waters under US Jurisdiction – not only U.S. waters/EEZ
This requirement involves waters under U.S. jurisdiction, which not only includes the EEZ/waters of mainland U.S.A. but also waters of Dependencies like Puerto Rico, Guam, American Samoa etc.
Other COFR State Certificates
Next to the (Federal) COFR, individual U.S. States also have their own COFR requirements. The States California and Alaska are examples of such States. Also for these State COFR certificates we can provide assistance where required.
Other Certificates
Next to the above COFR’s there may be other certificates/arrangements required. From a practical perspective, given our involvement with vessels calling at US waters, we have obtained quite some experience in assisting our clients to obtain the most relevant certificates in our field, which next to COFR’s, include International Carrier Bonds as well as a COFR for passenger vessels – FMC Certificate(s).
The latter dedicated towards passenger vessels performing voyages to waters under U.S. jurisdiction. These vessels, subject to a number of parameters, have to evidence that the Operators are capable of meeting their obligations towards these passengers in either performing the voyage and delivering the passengers at final destination or in meeting liabilities following personal injury, death or sickness of passenger(s).
Operators responsibility
Although we try to assist our clients as much as possible, it is eventually up to owners/operators of vessels to establish which certificates are required and obtain these. Some certificates require quite some information to be disclosed and timely application as well as efforts from the side of operators to be taken given the substantial framework of regulations and requirements applicable.
Should you require any assistance following a scheduled call at waters under US jurisdiction therefore please feel free to contact us.
P&I insurance covers the liabilities resulting from operations of the vessel and has originally been initiated by ship owners. Apart from this category, also other operators like managers and charterers can be covered for these risks.
P&I insurance covers Assured’s liabilities such as (but not limited to):
• Personal injury of seamen, passengers and others on board
• Loss or damage of cargo
• Pollution
• Wreckremoval
• (Excess) collision with other vessels and property
• Towage
• Property on board
P&I insurance covers Assured’s liabilities such as (but not limited to):
• Personal injury of seamen, passengers and others on board
• Loss or damage of cargo
• Pollution
• Wreckremoval
• (Excess) collision with other vessels and property
• Towage
• Property on board
Freight, Demurrage & Defence covers the legal expenses of the Assureds to defend their position in disputes which do not fall under the P&I insurance. These can be disputes in respect of Charter Parties, Bills of Ladings, Contracts of Carriage and disputes related to demurrage, freight payment, etc. The insurance covers the legal expenses in respect of these proceedings, not the actual amounts under dispute.
In addition to the Charterers’ P&I risks, Charterers may be liable for damage to the vessel, occurring during the charter period. P&I insurance does not cover damage to the vessel. Charterers therefore have to take out Damage to Hull insurance, covering liability of the Charterer for such damage.
Post & Co provides tailor made covers for Charterers and we invite you to read more about our insurance solutions servicing the Charterers industry.
Post & Co provides tailor made covers for Charterers and we invite you to read more about our insurance solutions servicing the Charterers industry.
The F.D. & D. insurance will have a deductible to be borne by the Assureds themselves. Such a deductible can be covered under the Legal Expenses cover, subject to the condition that also F.D. & D. cover has been taken out.
The conventional P&I insurance covers the legal liabilities of the assured. Legal liabilities arise from national laws and international conventions and depend on the trade and the operation of the vessel. The Clubs / insurers expect their members / assureds to conclude contracts based on unaltered conditions for certain trades and operations.
Especially in the Offshore industry contracts it frequently happens that parties deviate of the standard liability regimes.
Any amendment to the standard accepted conditions need special attention and where necessary additional cover has to be arranged. Post & Co will be pleased to assist in arranging cover for such contractual liabilities.
Especially in the Offshore industry contracts it frequently happens that parties deviate of the standard liability regimes.
Any amendment to the standard accepted conditions need special attention and where necessary additional cover has to be arranged. Post & Co will be pleased to assist in arranging cover for such contractual liabilities.
For many years Post & Co provides the possibility for individual inland shipowners, who have placed their P&I insurance within our own facility, to extend their insurance package with a general liability insurance. The background for providing this insurance originates from the day to day practice where, on a regular basis, we are confronted with claims which have occurred in the borderland of P&I and general liability. Our general liability insurance covers claims by third parties for both bodily injury and property damage arising from the actions of the insured in its capacity as owner / operator of barges.
This insurance covers the daily hire amount if the vessel is detained as a consequence of an act of piracy and the vessel cannot be put off hire under such circumstances. Cover pays up to the agreed limit subject to the daily hire in the Charter Party.
Bunkers provided and owned by Charterers can represent a substantial value. The Charterers’ Bunker insurance covers the loss of or damage to the bunkers. If in case of General Average the value of the bunkers contribute to the General Average award, the Charterers’ Bunkers insurance covers such contribution.