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OverviewSpecialty Marine
Ocean Marine insurance refers to much more than just the insurance of ships. Ocean Marine insurance will include the insurance of hulls, the cargo they carry, liabilities that may devolve upon ships and ship operators, known as protection and indemnity as well as the insurance of businesses involved in marine type operations marinas, boat dealers, yacht clubs, ports, harbors, wharves, container terminals, oil platforms, drilling rigs, etc.). The following is a product-by-product overview designed to provide an understanding of and an increased level of comfort for marketing of Ocean Marine products.
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- Bareboat Charter
This is the chartering of a yacht that will be navigated by the person chartering the vessel or a captain hired by the person chartering the vessel. The person chartering the vessel may do so directly with the owner of the vessel or may go through a charter company. If a captain is not being hired, the person chartering the vessel should have a considerable amount of skill and experience in navigating similar type vessels.
The only company available to Special Risks for this product is Markel American Insurance Company.
There are specific underwriting guidelines that must be met in order to be able to write this product. These are required in addition to the fully completed Markel Commercial Marine Application.
The Markel underwriter must review this submission prior to the issuance of a quote. The expected turn around time is therefore going to be several days.
- Charter (Maximum of 6 passengers and More than 6 passengers)
Comprehensive coverage for 6-Pack and Over 6-Pack Charters of both types: fishing or sightseeing vessels. Available in New England and New York State
Coverage Options:
Hull and Protection & Indemnity
Charters Legal Liability
Watercraft Liability (P&I)
Watersport Liability
Crew Liability
Medical Payments
Uninsured Boater
Pollution Liability
Ship Repairers'Coverage can be provided on standalone basis or as a part of Marine Package Insurance to provide better protection and competitive rates
Special Features:
No Loss runs required on all risks desiring liability under 1 Million Excursion Vessel Insurance Program Available Owner operated Lobster Boats in MaineExclusions: Snorkel & Dive Tours and other in- water exposures; No charter Vessels with Greater then 50 passengers
In this situation, the owner of the vessel is actually holding their vessel out for hire. The owner of the vessel is a licensed Captain through the United States Coast Guard. The license they hold is either for six passengers or one for over six passengers. These charters will vary in types such as fishing charters or sightseeing charters.
The companies available to Special Risks for this product are Great American Insurance Company, Markel American Insurance Company and International Marine Underwriters (One Beacon Insurance Company). There are specific underwriting guidelines that must be met in order to be able to write this product. These are required in addition to the fully completed Commercial Marine Application.
- Boat Builders (Builders Risk)
This is insurance written to cover a vessel from the time the keel (chief structural section of the vessel) is laid in the boatyard until the time that the vessel is accepted by its owner. The coverage typically includes trial runs conducted within a specified number of nautical miles from the location where the vessel is being constructed. Depending on the company utilized, products and completed operations coverage may be available. The premium for this coverage is calculated on the total completed value of the vessel. Coverage includes both Hull and Protection & Indemnity coverage.
Special Risks has Essex Insurance Company, Great American Insurance Company, International Marine Underwriters (One Beacon Insurance Company) and St. Paul Travelers available for writing this product. The specific factors of each risk submission will determine which company is best suited for that particular risk.
An Acord 125 and an Acord 126S application should be submitted initially. Determination of the best-suited company will be made form this initial submission. A company specific application will then be provided for this risk.
The expected turn around time for issuance of a quote will be several days from the time that all of the applications are sent to the company underwriter.
- Boat Dealers
Insurance coverage for businesses involved in the sales and/or service of vessels. Coverage is commonly provided for both property and liability. Property coverage is ordinarily limited to watercraft and other merchandise held for sale by the dealer. Liability coverage is typically Protection & Indemnity insurance. If the dealer performs maintenance or repairs on customers’ vessels or provides any docking, fueling or storage services, coverage will be needed for vessels in their care custody or control. This will usually be accomplished through issuance of MOLL (Marina Operator’s Legal Liability) coverage. In addition to owned property, a boat dealer may have in its custody stock owned by others but placed on consignment with the dealer; watercraft owned by others being examined or tested prior to trade-in as well as property sold to others but not yet delivered. Like any other dealer, a boat dealer ordinarily has a flow of incoming and perhaps outgoing shipments. This property in the course of transit will also need to be covered.
Special Risks has ACE/INAMAR Insurance Company, Essex Insurance company, Great American Insurance Company, International Marine Underwriters (One Beacon Insurance Company) and St. Paul Travelers for writing this product. The specific factors of each risk submission will determine which company is best suited for that particular risk.
An Acord 125 and an Acord 126S application should be submitted initially. In the case where property coverage for buildings is being requested, an Acord 140 application should also be submitted along with the other Acord applications. Determination of the best-suited company will be made from this initial submission. A company specific application will then be provided for this risk.
The expected turn around time for issuance of a quote will be several days from the time that all of the applications are sent to the company underwriter.
- Bulkhead
This is insurance coverage for marine related business activities involving a bulkhead (a retaining wall along a waterfront). These activities typically involve the loading and unloading of commercial vessels.
Special Risks has Essex Insurance Company available for writing of this product.
An Acord 125 and an Acord 126S application should be submitted for this product. If there is coverage being requested for owned and/or non-owned commercial vessels and/or workers involved in the loading and unloading (Stevedore Operations) additional applications will be provided for those coverage needs.
The expected turn around time for issuance of a quote will be several days from the time that all of the applications are sent to the company underwriter.
- Bumbershoot or Umbrella (Excess Marine Liability)
In many instances the Protection & Indemnity coverage provided in the basic policy contract will not be sufficient in capacity to provide the limits of insurance desired by the insured. In such cases, the insured can seek to obtain Excess liability insurance coverage. This may be from the same company that writes the basic policy or possibly from another company. Generally there are two forms that excel liability insurance may take. One is a follow form Excess liability policy and the other is a Bumbershoot policy. A follow form Excess policy provides additional limits of insurance on the same terms as the primary policy. In contrast, a Bumbershoot or Umbrella policy contains one or more coverage agreements that may be broader than the primary policy. The Bumbershoot or Umbrella policy will not only pay large losses that exceed the primary limits but will also “drop down” to pay claims that are not covered at all by any primary policy if they are covered by the Bumbershoot or Umbrella policy. Although Bumbershoot and Umbrella policies operate in essentially the same manner, a Bumbershoot policy is a marine-type policy that is broadened to pick up the insured’s marine liability exposures in addition to the non-marine liability exposures. Special Risks has International Marine Underwriters (One Beacon Insurance Company) and St.Paul Travelers for the Bumbershoot policy. Essex RE, Great American and International Marine Underwriters (One Beacon Insurance Company) are available for the Umbrella policy.
If the Excess liability coverage is being requested as part of package coverage, the Acord Umbrella Section should be submitted. If the Excess liability coverage is being requested on a mono-line basis, a company specific application will be needed. In this situation, submit an Acord Umbrella Section, which will be utilized in determining the best-suited company. Once the best-suited company has been determined, a company specific application will be provided.
The expected turn around time for the issuance of a quote will be several days from the time that all of the applications are sent to the company underwriter.
- Client Entertainment
In the situation where a vessel owned by an individual or a business is used as a location to entertain clients, there exists the need for special coverage. This type of activity is considered as a commercial endeavor and typically will result in coverage on a Personal Watercraft becoming null and void. Most Personal Watercraft policies exclude coverage for any type of Commercial use.
The only company available to Special Risks for writing of this product is Markel American Insurance Company.
The Markel Commercial Marine application is needed when submitting a risk for this coverage.
The expected turn around time for issuance of a quote is several days after the application has been sent to the company underwriter.
- Commercial Fishing Vessels
This coverage is for a number of different types of commercial fishing operations. The most commonly seen fishing operation in our geographical area is lobster boats. There are however a number of other types of fishing operations. There are some types of fish that are caught by a dragger vessel. These vessels drag nets near the sea floor. Other vessels, called seiners, catch fish at middle depths by encircling schools of fish with their nets and then closing the nets as they are hauled back to the vessel. Fishing for certain kinds of shellfish (clams and scallops) involve the use of dredges that are pulled along the bottom and then hauled aboard.
There are some large fish such as swordfish that are caught by using fishing lines with hooks that are baited and then reeled in and out. These vessels face different hazards because of the areas they navigate, the equipment they use and the specialized nature of each fishing operation.
Special Risks has Great American Insurance Company, International Marine Underwriters (One Beacon Insurance Company) and Markel American Insurance Company available for writing this product.
The underwriting factors, type of fishing operation, waters navigated, age of the vessel, length of the vessel, hull construction, etc. will determine which company is best suited for that particular risk. It is recommended that you call our agency and discuss the applicable underwriting information with us. Once the best-suited company is determined, the company specific application will be provided.
The expected turn around time for issuance of a quote is several days after the application has been sent to the company underwriter.
- Commercial Hull
Coverage provided for Blue-water and Brown-water vessels such as Barges, Excursion Vessels, Ferries, Tugs & Tows. Eligible classes of vessels also include:
Passenger Vessels
Inland and Coastal Work Vessels
Gaming Vessels
Oceanographic Research VesselsAvailable in: New England and New York State
Coverage: Hull and Protection & Indemnity
Optional: Builder’s Risk and Operating
Excess and Increased Value
Low Appetite for Crew P&I Exposure
Limits: Up to $5,000,000
Coverage may be provided on standalone basis or as a part of Package Program to provide protection and competitive rates
Special Features:
Aggregates and deductibles can be modified to meet your needs Full inspection of your P&I exposures Private pleasure yacht risks may be coveredHull coverage is broken down into two basic categories. There is a blue-water segment and a brown-water segment. Blue-water vessels are generally considered to be vessels capable of full ocean operation. Brown-water vessels are those whose navigation is limited to inland waterways, harbors of coastal waters. Blue-water business typically involves larger vessels or fleets of such vessels, sometimes with insurable values in the millions of dollars per vessel. Generally speaking, the value of vessels used in brown-water trades is less than that of blue-water vessels. In most cases, the same company providing Hull coverage for a brown-water vessel will also provide Protection & Indemnity coverage. Typical brown-water vessels are Barges, Excursion Vessels, Ferries & Tugs.
Special Risks has Essex Insurance company, Great American Insurance Company, The Hartford, International Marine Underwriters (One Beacon Insurance Company), Markel American Insurance Company & St. Paul Travelers available for writing this product. Submit an Acord 125 and an Acord 126S application for the initial review of the risk. Once the best-suited company has been determined a company specific application will be provided.
The expected turn around time for issuance of a quote will be several days after all of the applications have been sent to the company underwriter.
- Docks, Piers & Wharves
These are structures built along the waters edge where vessels can lie alongside. These structures may be part of a Marina or Marine type operation or may be owned by an individual, corporation or association. They could be part of the common ownership of a condominium or homeowners association. They may be utilized for the mooring of vessels with no commercial aspect or have a commercial aspect associated with their usage.
Special Risks has Essex Insurance Company, Great American Insurance Company, International Marine Underwriters (One Beacon Insurance Company) & St. Paul Travelers available for writing this product. Coverage for this product as a mono-line policy is only available through Essex Insurance Company.
As part of a Marina or Marine type business operation, submit an Acord 125 and an Acord 126 S application. For coverage as a mono-line policy contact our agency and we will provide you with the Essex application.
The expected turn around time for issuance of a quote will be several days after the applicable application(s) have been sent to the company underwriter.
- Dry Dock Refit or Refurbish
- Confirmation that the vessel is on dry land
- The full address including street, city, state and zip code where the vessel will be located (name of the Marina or Boatyard if applicable)
- Statement as to who is doing the work on the vessel
- Projected vessel value after completion of the work
- Estimated time needed for completion of the work
- If applicable, request to provide coverage for trial runs
This is coverage for a vessel that is undergoing a partial refit or a total refurbishing. The vessel is on dry land in a secured location (inside of a locked building or outside in a fenced, locked & security lighted area). Coverage is based on the projected value of the vessel after completion of the refit or refurbishing. Coverage is provided for the expected time period needed for completion of the work. The coverage is for “port risk” only unless there is a request for coverage of trial runs.
The only company available to Special Risks for this product is Essex Insurance Company.
There is not a specific application for this product. You will need to submit an Acord Watercraft application. You will also need to provide the following information along with the Acord Watercraft application:
The expected turn around time for issuance of a quote is several days after the application and additional required information is sent to the company underwriter.
- Marinas & Marina Operators
Program designed for waterfront business owners and operators to protect property, personal pleasure crafts and their motor when in-marina’s care, control for repairs, maintenance, lay-up, storage mooring, custody, slip rental, hauling, fueling, launching and other services
Available in: New England and New York State
Coverage may include:
Property
General Liability
Equipment
Protection& Indemnity
Piers and Docks
Work Boats
Umbrellas
Marina Operators Legal Liability (MOLL)Limits: Up to $ 5,000,000 (GL)
Minimum Deductible: $1,000
Exclusions: Marina Workers’ CompensationA marina is a waterfront facility that provides a variety of services for owners of pleasure use watercraft. The typical services provided by marinas include the lease or rental of dock space (slips) or offshore moorings to owners of watercraft; storage services; repair services. Other services that a marina may offer include fueling, launching, hauling (removing vessels from the water), towing of disabled vessels, delivery of vessels to owners after repair (by land or by water), rental of vessels and other watercraft such as jet skis, repair of commercial vessels and ferry services to vessels moored offshore.
In most MOLL policies, coverage applies only at the locations scheduled in the policy. If the marina delivers vessels to owners over land by trailer or by water, the policy should be clearly worded to cover both types of transit.
If the distance permitted for transit by the insurer is less than that practiced by the marina, there will be a need to negotiate a sufficient radius of operation with the insurer.
Marina Operators Legal Liability (MOLL) coverage insures the marina against liability for damage to customer’s vessels, engines and outboard motors in the marina’s care, custody or control. Typically, the coverage is limited to personal pleasure vessels, including property thereon. Marina operator’s liability for bodily injury to others caused by their operation of a customer’s vessel in their care, custody or control can be covered by a Prtection & Indemnity endorsement to the MOLL policy or under another liability policy.
A marina package policy can offer property coverage for buildings, commercial auto coverage, boiler and machinery coverage, equipment floater coverage, business income coverage, etc. excepting Workers Compensation.
Carriers: ACE / INEMAR Essex Insurance Company, Great American Insurance Company, The Hartford, International Marine Underwriters (One Beacon Insurance Company) St. Paul Travelers
Forms: Acord 125, Acord 126S Applications; Property Section, Auto Section; Equipment Floater Section, Umbrella Section etc - Marine Artisan Contractors
Program designed for individual or a small business that repairs, services, or installs equipment on private pleasure or small commercial watercraft. Eligible classes of business include:
Boat Repair
Painting Detailing/Cleaning
Waste Pump Out
Boat Waxing
Fueling
Upholstery Work
Detailing/Cleaning
Carpentry/Woodworking
Canvas Work
Electronics Installation/MaintenanceAvailable in: New England and New York State
Coverage: Combines Shiprepairers and GL
Optional:
Bailee coverage
Protection & Indemnity
Equipment floater
TransitLimits: Up to $5 Million (Liability)
Premium: Premiums are based on the type of work performedMarine Artisan Contractors are businesses that provide a wide variety of services or repairs to owners of both personal pleasure vessels and commercial vessels. Examples of these types of services are Boat Repair, Boat Waxing, Electronics Installation or Maintenance, Detailing, Fueling, Canvas Work, Upholstery Work, Painting, etc. In some cases these services are provided at the mooring or storage location of the vessel. In these cases, the customer’s vessel is not in the care custody or control of the business owner. In other cases, the business owner has leased a location at a boatyard or marina and has care custody or control of the customer’s vessel. In addition to liability coverage there may be an equipment floater (business owners tools) involved as well.
All applicable Acord applications (125, 126S, Equipment Floater Section) should be submitted for the initial review of the risk. Once a decision is made as to the best-suited company, the company specific application will be provided.
The expected turn around time for issuance of a quote is several days after all of the applications have been sent to the company underwriter.
- Miscellaneous Commercial Marine
Testing of rivers or other waterways. The United States Coast Guard and other environmental protection agencies are hired to conduct ecological studies of our area waterways. They may also do testing and treatment for mosquitoes as well. Real Estate Tours use boats to take clients to property for sale that are accessible only by waterway navigation. Land Surveyors use boats to get to property that requires surveying but are only able to be reached by navigation or waterways. Time Sharing coverage is needed when a vessel is owned and shared by several individuals.
The only company available to Special Risks for this product is Markel American Insurance Company.
A Markel Commercial Marine Application is required for submission of this type of risk. Due to the unique nature of these types of business, the submission must be reviewed by the Markel underwriter prior to issuance of a quote. The expected turn around time is therefore going to be several days.
- Ocean Cargo
The Worldwide Transportation Policy will meet your clients’ transportation coverage needs, whether they are shipping goods internationally by air or by sea, as well as the connecting conveyances (such as truck and train). This policy provides some of the broadest coverage available including the following:
Advanced Claims Payment -When damage occurs, it can take time to collect the necessary information to process the claim and indemnify the loss. With this valuable coverage, a payment can be advanced to keep the insured afloat while the loss costs are being finalized.
Coverage for the expense to expedite repairs or replacement – With the prevalence of “just in time” inventory and delivery logistics, it’s important to be able to make immediate repairs or quickly replace damaged goods to complete sales. This important coverage provides for the extra costs associated with rapid delivery and service.
Continuous coverage for containerization, consolidation and deconsolidation – Because certain cargo requires special packing or re-packing for optimal transport, the policy will provide continuous coverage as cargo is loaded onto trucks, repacked by exporters or unpacked for distribution at the final destination. Better still, coverage is extended for up to 60 days after arrival.
Control of Damaged Property – In the event of partial loss to the insured’s goods, this will allow the insured to participate in discussions concerning the decision whether to consider the entire shipment as a total loss. This decision may arise due to any adverse impact on their interests that might result from reworking of the shipment.
Customs Detainment – Recent events have caused U.S. Customs to increase their enforcement of laws and regulations. This policy will provide coverage for the cost of bonds to release goods held in the enforcement of laws or regulations.
Concealed Damage – This policy provides additional time to discover transit losses if packages are not opened for up to 120 days after receipt.
Fraudulent Documentation – The risk of loss due to acceptance of fraudulent shipping documents is often unrecognized and can lead to significant costs that many carriers will not cover. This policy provides this distinctive coverage automatically.
Non-Delivery Clause – This policy considers the goods to be lost in transit after they have been missing for 60 days.
Subrogation Recovery Sharing – When loss or damage of goods happens, it is often another party that is at fault. The policy will provide pursuit of those liable parties to recover for the damage they caused. In the case where subrogation is successful, this policy will also make every effort to reimburse a portion of the insured’s deductible so they are not out-of-pocket for that portion they self insure.
Survey Expense – There is a benefit in having a damaged shipment surveyed without delay, allowing the insured to make necessary decisions quickly and thereby reduce the impact such loss can have on business. This policy will pay or reimburse for reasonable costs of survey.
Interruption of Goods in Transit – When cargo is damaged it often needs to be held over for inspection and is removed from the due course of transit. This policy will remain in force, outside the usual course of shipping, when there is a request for temporary removal from transit.
Although Special Risks has Ocean Cargo policies available with AIG, Essex Insurance Company, Great American, The Hartford, International Marine Underwriters (One Beacon Insurance Company) and St. Paul Travelers, we have chosen The Hartford as the primary company for this product.
Once the fully completed Hartford Worldwide Transportation application and any applicable schedules are submitted to the company underwriter, the turn around time will be several days.
- Rental Operations
These are businesses that rent manual boats (rowboats, kayaks, etc.), inboard/outboard boats, sailboats, jet skis, etc. These rentals can be just by the hour, for the day, several days, etc.
The only company available to Special Risks for this product is Markel American Insurance Company.
There are specific underwriting guidelines that must be met in order to write this product. These are required in addition to the fully completed Markel Commercial Marine Application.
The underwriter must review this submission prior to issuance of a quote. The expected turn around time for issuance of a quote is therefore going to be at least several days.
- Sailing Schools & Camps
These are “business” operations that provide training to both children and adults in the process of learning to sail a boat. In many cases these may be “non-profit” organizations. These schools are also offered by the United States Coast Guard, the YMCA or YWCA, etc. Factors regarding the training of the instructors, size of the vessel, waters navigated, etc. will impact on acceptability of the risk.
The only company available to Special Risks for this product is Markel American Insurance Company.
There are specific underwriting guidelines that must be met in order to write this product. These are required in addition to the fully completed Markel Commercial Marine Application.
The underwriter must review this submission prior to issuance of a quote. The expected turn around time for issuance of a quote is therefore going to be at least several days.
- Stevedore's Legal Liability
This product is needed by business operations involved in unloading or discharge operations such as local shipping agents who employ stevedores or longshoreman. This policy covers legal liability for direct physical loss or damage to property of others resulting from or arising out of the actual loading and/or discharging of vessels. (Note: Stevedore operations may include a terminal operation that would require separate terminal operator’s legal liability coverage to ensure continuity of coverage. If dock space is owned or controlled by the stevedore then wharfinger’s legal or landing dock bailee liability coverage may also be needed.)
This product is available to Special Risks through Essex Insurance Company, International Marine Underwriters (One Beacon Insurance Company) and St. Paul Travelers.
The Acord 125 & 126S applications should be submitted initially in order to determine the company that is best suited for that particular risk. You will be provided with the company specific application once the best company has been determined.
The expected turn around time for issuance of a quote for this product will be several days after all of the applications have been submitted to the company underwriter.
- Terminal Operator's Legal Liability
This product is needed by terminal operators and will include corporations or subcontractors that provide stevedoring services. This policy covers the terminal operator’s legal liability loss or damage to cargo while in the care custody or control of the insured at the insured’s premises. It may also include stevedores and wharfingers liability for loss or damage to the property of others arising out of the insured’s performance as terminal operator.
This product is available to Special Risks through Essex Insurance Company, International Marine Underwriters (One Beacon Insurance Company) and St. Paul Travelers.
The Acord 125 & 126S applications should be submitted initially in order to determine the company that is best suited for that particular risk. You will be provided with any company specific application once the best company has been determined.
The expected turn around time for issuance of a quote for this product will be several days after all of the applications have been submitted to the company underwriter.
- Wharfingers
This product is needed by owners of docks, piers, wharves or any type of marine landing facility. Wherever commercial vessels load or unload or are laid up in storage, owners of a dock, pier or mooring area are liable for loss or damage to vessels in their care custody or control, as well as for damage to other property caused by such vessels. Coverage is provided for the owner against these types of losses. Coverage may also be extended to include liability for third-party bodily injury, certain contractual liabilities, liability for demurrage and similar expenses, voluntary removal of a wreck, strikes and even pollution.
This product is available to Special Risks through Essex Insurance Company, International Marine Underwriters (One Beacon Insurance Company) and St. Paul Travelers.
The Acord 125 & 126S applications should be submitted initially in order to determine the company that is best suited for that particular risk. You will be provided with the company specific application once the best company has been determined.
The expected turn around time for issuance of a quote for this product will be several days after all of the applications have been submitted to the company underwriter.
- Transit & Storage
This is insurance coverage for a vessel that will be laid-up for a twelve-month period. The vessel cannot be undergoing any refit or refurbishing and cannot be held for sale. It is preferred that the vessel be inside of a locked building, however if it is outside, the area that it is kept in should be fenced, locked and security lighted. Vessels stored in water at a Marina, Boat Yard or some other similar type marine storage facility with a bubbler system may be acceptable to the company underwriter.
The only company available to Special Risks for this product is Markel American Insurance Company.
Depending upon the type of vessel (regular watercraft, high performance or yacht) there is a specific Markel application that will be utilized for submission of a quote request for this product. Please call a representative from the Commercial Ocean Marine Department to discuss the risk that you will be submitting so that a determination can be made as to the applicable Markel application that will be provided to you.
The underwriter must review this submission prior to issuance of a quote. The expected turn around time for issuance of a quote is therefore going to be at least several days.
- Underground Storage Tank
The United States Environmental Protection Agency (EPA) developed financial responsibility regulations to ensure that underground storage tank (UST) owners and operators can pay the costs of cleaning up leaks from UST’s and compensate third parties for bodily injury or property damage resulting from leaks. The financial responsibility regulations (4 CFR Part 280, Subpart H) allow UST owners and operators to choose from a variety of financial mechanisms in order to comply with the regulations. One of these financial mechanisms is the use of insurance.
Special Risks has Seneca Insurance Company and Zurich Insurance Company available for the writing of this product.
Please call and speak with a SRL Commercial Ocean Marine Department representative in order to discuss and review the particular risk and determine which company will best serve that particular risk. The company specific application will then be provided to you.
Once the fully completed application and other required documents (diagrams, monthly rest reports, etc.) are submitted to the company underwriter, the expected turn around time for issuance of a quote will be at least several days.
- Vessel/Marina Pollution
The owners of tankers and tank barges have a very significant exposure to liability for environmental damage and cleanup costs arising from oil spills or the release of other pollutants. Even a vessel that is not a tanker has a substantial exposure to pollution liability that might result form a negligent collision with a tanker or tank barge, spillage of the vessel’s own fuel supply or discharge of some non-liquid cargo that could pollute the environment. A ship owner’s liability for environmental damage and cleanup costs depends largely on the law of the nation or state having jurisdiction. The marine pollution laws of many nations conform to a uniform international standard. Some nations, most notably the United States, have not ratified any international conventions on oil pollution liability and instead have their own laws relating to oil spills. After the 11 million gallon Exxon Valdez spill in 1989, Congress enacted the Oil Protection Act of 1990 (OPA), which greatly increased the potential liability of ship owners. This law imposes liability on any “responsible party.” The term “responsible party” includes a vessel owner, operator, or bareboat charterer for cleanup costs and damages including damage to property, damage to natural resources, loss of profits, loss of earnings and so on. Although OPA provides limitation of the liability of a “responsible party,” these limits do not apply if the incident was proximately caused by gross negligence or willful misconduct or if there was violation of an applicable federal safety regulation by the “responsible party,” an agent or employee of the “responsible party,” or a person acting pursuant to a contractual relationship with the “responsible party.” The limits of the OPA do not supersede the laws of several individual states that impose unlimited liability on polluters. For this reason it is quite possible that a ship owner could face unlimited liability for oil spills in U.S. waters.
Special Risks has Great American Insurance Company and the Water Quality Insurance Syndicate available for writing of this product.
The Great American Insurance application will be needed for Vessel Pollution Liability Coverage and the Blue Haven Marina Coverage application will be needed for the Marina Pollution Coverage. Please call and speak with a Commercial Ocean Marine Department representative to discuss the risk that you are looking to submit. The applicable application will then be provided to you.
The expected turn around time for issuance of a quote will be several days after the application is submitted to the company underwriter.
- Yacht Clubs
This type of business provides a wide variety of services to individuals who become members of their club. Commercial General Liability Coverage is available to cover most of their products and services, however Food and Liquor Liability are not available coverages. Other types of coverage associated with this product are Property coverage (buildings, structures, equipment, furniture, supplies, etc.), Docks, Piers & Wharves Coverage, Marina Operator’s Legal Liability coverage, Business Interruption Coverage, Owned Watercraft Coverage, Commercial Auto, etc.
Special Risks has ACE/INAMAR Insurance Company and International Marine Underwriters (One Beacon Insurance Company) available for writing this product.
Initial submission of all the applicable Acord applications (125, 126S, 140, Auto Section, Equipment Section, Umbrella Section, etc.) will be needed. Once the best company for this particular risk has been determined, the company specific application(s) will be provided to you.
Once all of the applications and any other required documentation have been submitted to the company, the expected turn around time for issuance of a quote will be several days.
If you have questions related to our Specialty Marine Products, please feel free to contact: Leo H. Roberge III, CIC, CISR, AIS- Specialty Marine Manager: (888) 773-7475 | Ext.353 lroberge@SpecialRisksLtd.com
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