Note: This is a general summary of coverages and it is not intended to give complete policy information. All coverages and exclusions
are found in the policies.
"Coverages
and services described in this website are generally stated
for the purpose of promotion. The material does not modify or
amend the terms, conditions, or coverages of any policy.
Please ask your Supple-Merrill & Driscoll, Inc.
representative to explain coverage details, exclusions, limits
or other provisions of any insurance policy."
Hull
and Machinery
Hull and Machinery
protects owners and production companies with an insurable interest
in vessels and floats of all kinds against the expense that might be
incurred in repairing or replacing property damaged, destroyed or
lost because of a covered peril. Coverage is written on an “all
risk” basis. Included in the hull policy is Collision Liability, up
to the value insured on the hull policy, for damage caused by
collision with another vessel.
If there is no
hull insurance on the vessel, Collision Liability is added to the
Protection & Indemnity policy for the amount that would have been
covered by the hull policy.
This coverage protects the insured
against (1) liability for specified types of bodily injury or
property damage and (2) certain unexpected vessel related exposures
and disbursements. The principal liabilities that are covered are:
Loss of life, personal injury and
sickness of the vessel crew, production crew and third parties;
Damage to cargo on board the vessel;
Damage to piers, docks, jetties, and
other fixed objects;
Damage to other vessels and their
cargo caused otherwise than by collision with the other vessel;
Inadvertently incurred fines and
penalties because port rules were violated;
Expenses incurred when the law
requires that a wrecked vessel be removed; and
Limited pollution liability coverage
for vessels under 100 gross tons. (Fines are excluded from
coverage).
An injured
American seaman (and sometimes even an injured alien seaman) has a
remedy under the Jones Act if the injury was caused by the
negligence of the employer or his or her agents and employees. The
clear purpose of the Jones Act was to extend to seamen a cause of
action against their employers measured by the Federal Liability
Act. Insurance coverage under these Federal Acts is much broader
than traditional workers compensation policies. The courts have
given an expansive definition as meaning almost anyone who works
aboard a vessel. Workers compensation policies usually exclude
coverage for work aboard vessels.
The basic Movie
Boat Line Slip covers Protection & Indemnity in the amount of
$1,000,000. Each vessel is considered a separate insured entity.
$9,000,000 excess can be attached without notice to underwriters.
Higher amounts of excess liability can be arranged.
Charterer’s Liability
is a form of contingent liability coverage, which indemnifies an
additional named insured should the coverage be insufficient to
properly cover the additional insured. Under Charterer’s liability,
the charterer must defend the matter, and if found liable, is
reimbursed by the insurance carrier. This form of coverage doesn’t
cover requirements of the Jones Act and is seldom used by production
companies.
Hull & P&I policies
contain standard towage exclusion clauses. Towers liability clauses
provide coverage for the object being towed, and coverage for any
cargo aboard the tow.
