Insurance Watch

Consider additional insurance coverage

In today’s world just having hull and protection and indemnity insurance may not be enough.

Does your vessel have tenders? While your hull’s coverage extends to the tenders and launches, they will also have the same deductible that your vessel carries. This could often be higher than the value of your tender. By listing your tenders separately, you can have them insured for a stated value and have a much lower deductible for them. And don’t forget to inform your agent if you install a new outboard on your tender. You won’t have increased coverage practices law. The case turned on whether Pennsylvania law applied, which would allow Raiders Retreat’s claims, or if New York law would apply as the chosen law in the policy, which would not allow the claims. The insurer moved for judgment on the pleadings asserting that the insurance policy included a choice of New York law, which precluded Raiders Retreat’s claims brought under Pennsylvania law. The district court upheld the New York choice-of-law provision. for it unless you notify the insurance company.

On appeal, the Third Circuit remanded the case, instructing the district court to consider whether applying New York substantive law contravened Pennsylvania’s “strong public policy” under a longstanding maritime case, “The Bremen,” which held that “forum-selection articles in maritime cases should be enforced absent a ‘strong showing’ that ‘enforcement would be unreasonable and unjust, or that the clause [is] invalid for such reasons as fraud.’” The Supreme Court accepted the case to determine under admiralty law whether a choice-of-law clause in a maritime contract can be rendered unenforceable if contrary to the “strong public policy” of otherwise applicable state law.

Pollution is excluded from all hull and P&I policies. There is some buy-back coverage available, but it is limited and often will not respond when needed. A standalone pollution policy provides wide ranging coverage for not only clean up but also nes, penalties and potential liability.

And don’t forget that there is more to pollution besides petroleum spills. Blackwater and chemical spills can be just as damaging and costly.

BY CHRIS RICHMOND

Richmond is a licensed mariner and marine insurance agent with Allen Insurance and Financial. He can be reached at 800-439-4311 or crichmond@allenif. com

Your vessel is often your sole means of making money. If your boat is not operating, you are losing income. If “loss of income” is added to your policy, it is a way to maintain a source of revenue while your boat is being repaired due to a covered claim.