MARINE INSURANCE
COVER & POLICIES
SERVICES
"The function of marine insurance is to transfer the risk of physical loss or damage, or liability arising out of ownership or interest in marine property, to the insurers. The purpose of any form of insurance is to replace that which has been lost - in other words, to indemnify the insured and put them in a financial position, as far as is possible, as though the loss had never occured."
Eurorisk SA is an Insurance Broking & Consulting Company, whose management and employees have a long-standing history in the Maritime services industry. Our expertise and global network of associates enable us to fully appreciate our clients’ needs and requirements, so as to arrange appropriate cover at the most competitive levels of premium, be it in the Greek or International Insurance markets. Our commercial clients include distinguished Shipowning companies, Shipmanagement companies and Banks, etc.
We pride ourselves in having a long-standing history in the Greek marine market and thus have experience in every aspect of marine insurance risks including risks faced by Banks when providing debt-finance to Shipping companies. Our team cater to our clients' day-to-day needs and provide claims handling assistance and consulting whenever required.
Our well-established relationship with large international insurance broking firms ensures the best service for our clientele and thus allowing us the ability to specialize in different types of Marine Insurance.
More specifically, we work closely with Lloyd’s accredited London-based brokers, to place business such as, Marine Hull, Increased Value and War cover in the London market in addition to directly liaising with all IGA P&I Clubs to thereby enter our clients for their Liability requirements. Finally, we also provide more specialized insurances such as Mortgagee’s Interest Insurance (MII) and Mortgagee’s Additional Perils Insurance (MAPI) for Shipping Banks as well as Refund Guaranty Insurance to protect Shipowners’ interests with regards guarantees deposited for Shipbuilding contracts
In addition to the above, we also provide consultation services to Banks active in the Marine Industry. We arrange a full range of marine-related covers as visible in the side bar.
SPECIALIZED COVERS
Purchaser's Interest Insurance
We always insist on our clients purchasing this type of insurance with respect to shipowner's (buyers) interest Insurance. It gives the buyer of a new vessel the peace of mind, knowing that all the expenses that have been made prior to taking delivery of their new vessel will be reimbursed to buyers in the event that the subject matter (the vessel), fails to meet the contractual obligations of the sale, and buyers do not take delivery of the vessel, for unforeseen circumstances prevailing.
AVIATION INSURANCES
We pride ourselves in being probably the only international broker who insures aircraft fixed and non-fixed wings. In itself Eurorisk s.a. is experienced in this highly specialized field. We have been brokers for Air Greece, Cronos, Aegean and other Greek interests Airlines.
We provide aircraft cover through our London associates and can offer our services in the following areas:
- AIRLINE PROGRAMMES (Hull, Crew Personal Accident, Passenger Liability, etc.)
- GENERAL AVIATION
- HELICOPTER OPERATORS
- AIRPORT LIABILITY
- AVIATION PRODUCT LIABILITY
- PERSONAL ACCIDENT
- LOSS OF PILOT/ AIR CREW LICENCE
Our wide-reaching network of existing and new associates enables us to provide our clients with competitive prices and the best possible solutions.
YACHT INSURANCE
Yachts and private pleasure boats are a niche specialty for us.
Since Greece is made up of many small islands and there are thousands of kilometers of beaches all over the country, we must also cater of the small owners. Our experience with small craft insurance, has opened up a new market of underwriters that are specialised in the placement of these vessels.
We can provide solutions through the local Greek insurers and international insurance companies to support our small vessel owners and their insurance requirements. With our sister company, NSA LTD, we can provide bespoke insurance solutions for all types of craft. We can cover the vessels when operating as private pleasure vessels, Skipper Chartered and as Bareboat charter run. We can cover the vessel and its machinery, equipment, personal effects and tenders. At the same time we can provide independent liability cover for the large yacht owners who want to split the cover.
CYBER INSURANCE
Cyber insurance for the Marine Market
The last five years have seen an increase in cyber events that affect all types of business and their operation. The Marine industry has been for some time excempt from these events until very recently. With the European Union now instigating the new regulations on Data Protection (the General Data Protection Regulations) GDPR, that come into force in July 2018, the Marine industry will have to start to consider implementing security protocols and measures so combat the growing threat of cyber breaches.
CLAIMS MANAGEMENT
Claims Handling and Collections
We handle our clients claims with the various insurance markets and facilitate the best service for their needs.
PORT AUTHORITY INSURANCES
Port Authority's Liability Cover
Insurance cover for the risks and liabilities that exist when a vessel is in port.
SHIPYARD INSURANCES
Shipyard's Liability Insurance
Also known as 'Bumbershoor Policy' (Umbrella policy), is a form of liability insurance, that acts as a type of umbrella coverage, designed specifically to insure marine risks. Shipyards use this policy, to provide Protection and Indemnity coverage as well as liability protection under the "Longshoreman and Harbour Workers' Act" in the US and other such acts in other juristictions.
This policy is intended also to cover all miscellaneous forms of liablity, providing insurance for collision and salvage expenses.
Ship Builder's Risk Insurance
This is a protection policy pertaining to when a ship which is under construction in in the hands of the ship builders. Coverage can be all-inclusive, excluding defects and destruction through war. It protects against both pre- and post-launch disasters.
Builders can choose a policy which covers the total amount of the finished product/Ship (Completed form) or a policy adjusting upwards as a work is completed (Reporting Form).
The scope of this insurance covers and extends beyond simply basic damage to the hull, but also some of the business risks involved in its construction. A similar policy can be undertaken by a shipyard when a vessel is brought in for repairs or dry docking.
REFUND GUARANTEE
Refund Guarantee Insurance
Shipbuilding contracts require payment for a vessel in stages with an agreed percentage being paid on signing of the contract and subsiquent payments following steel cutting, keel laying, launching and delivery. To secure return of those installments in the event that the ship builder breaches the terms of the building contract and does not deliver the vessel, a refund guarantee must be obtained. These guarantees undertake to return to the buyer the installments paid, plus interest at the agreed contractual rate, in the event the ship builder is in default and does not pay what is due. Building contracts will determine dispute by way of arbitration and guarantors will require an arbitration award in favour of the buyer before they pay what is due under the guarantee.
CORPORATE SERVICES
Banker's Blanket Bond (BBB)
Banker's Blanket Bond (BBB), an insurance policy that protects a bank against losses from a variety of criminal acts carried out by employees. Some states require blanket bond coverage as a condition of operating a bank.
This bond may be applied to individual employees or to job positions in the company. For example, a bank can insure a specific bank manager, or can choose to insure the position itself, so that any employee that assumes those job responsibilities is automatically covered. Some of the employee criminal acts covered by a blanket bond include robbery carried out by an employee and forgery.
Directors and Officers ( D&O )
This is cover for when a director or officer of a company commits a negligent act or omission, or misstatement or misleading statement, and a successful libel suit is brought against the company as a result. The policy provides coverage for directors’ and officers’ liability exposure if they are sued as individuals. Coverage is also provided for the costs of defense such as legal fees and other court costs.
Directors & Officers Insurance exists because claims from stockholders, employees, and clients will be made against the company, AND against the directors of the company. Since a director can be held personally responsible for acts of the company, most directors and officers will demand to be protected rather than put their personal assets at stake. Investors and members of your board of directors will not be willing to risk their personal assets to serve as a corporate director or officer, no matter how heartfelt their belief in the particular company.
Also, it is important to mention that employment practices litigation constitute the single largest area of claim activity under D&O policies. Over 50% of D&O claims are employment practices related.
It is necessary to have the cover when you assemble a board of directors of a company. They will frequently make it a requirement of the establishment of the board.
A noteworthy fact is that Investors, especially Venture Capitalists, will also usually require that a participant in such venture, show evidence of Directors & Officers Liability insurance as part of the conditions of funding of a given company.
Errors and Omissions (E&O)
Errors and Omissions Insurance protects your company from claims if your client holds you responsible for errors, or the failure of your work to perform as promised in your contract.
Coverage includes legal defense costs - no matter how baseless the allegations. E&O policies will pay for any resulting judgments against you, including court costs, up to the coverage limits on your policy. It is generally recommended that an E&O policy be taken up at the inception of any company's Insurance portfolio, (prior to launch) since in many cases it may be a requirement of investors, particular to Venture Capitalists.
E&O insurance policies insure not only your mistakes, but also the mistakes of employees and Independent Contractors hired by your company. Most businesses and industry groups can be covered under an Errors and Omissions policy.
MORTGAGEE'S INTEREST COVERS
Mortgagee's Interest Insurance ( MII )
Bankers require a certain level of contingency when handing out a loan to a shipowner, with this in mind, they take out a Mortagagee's Interest Insurance (MII) policy, that provides them a level of security, when claims under borrowers' policies are found to be void and or voidable. Thus insuring that fact that the bank will be covered in the contingent that there is a total or partial loss which causes the assignments to owner's policies to fail.
The risk of claims being declined or declared void because of a breach of warranty or breach of condition by the shipowner may cause the bank to lose cover The only means of covering these risks by other parties having interests in any given ship, is for them to be covered by this type of policy. Due to increased regulations that shipowners must now comply with and the subsiquent tightening of the marine hull clauses that followed the standard Institute Mortgagee's Interest Clauses are wholly inadequate in covering all financier's risks.
Mortgagee's Additional Perils Insurance ( MAPI )
The policy insures mortgagees against the risk of a shipowner being unable to meet the liabilities awarded by a court against a responsible vessel, mortgaged to the assured, caused as a direct result of the amount of the liability awarded being in excess of the applicable limit insured under the shipowner's P&I insurance.
Failure to pay liabilities will result in Maritime Liens attaching to the responsible vessel in favour of plaintiffs which will precipitate the arrest of the vessel. A maritime lien has priority over a ship mortgage on the vessel held responsible for the liability and consequently freezing orders may be attached to the monetary proceeds realised from court sale of the responsible vessel and also any claims recoveries under insurances covering the responsible vessel. Either can result in a bad debt and ultimate loss to the mortgagees. Maritime liens should not prime mortagages on siser ships, which are not held responsible for the liability; consiquently mortgagees of such vessels should succeed in making recoveries ahead of Plaintiffs. The risks insured under a MAPI are assessed by examining the cover limits insured under a vessel's P&I insurance.
Port Risk Insurance ( PRI )
Institute Time Clauses Hulls Port risks is a cover which amongst other risks mainly covers total and partial losses against specified perils and also include 3rd party and protection and indemnity liability covers collision liability or legal liability by way of damages for loss of life or personal injuries to 3rd parties. This cover is used for insurance of a vessel operating within port - hence the name.
CREW PERSONAL ACCIDENT ( CPA )
We provide our clients with Crew Personal Accident (CPA) cover in so far as their proportion of the P&I deductible is concerned. Where a shipowner has a crew deductible of say $10,000 per accident, we are able to cover this deductible in the London market as additional CPA cover. In parallel to this policy we are able to organise the claims management services.
CARGO INSURANCE
The purpose of cargo insurance is to provide financial protection to the cargo owner while goods are in transit and to some extent in storage.
We have been active in providing open cover policies for clients involved in the petroleum and liquid gas transport. We specialise in 'Open Cover' policies for clients who trade in particular goods with frequent monthly shipments.
We provide cargo insurance to clients who buy and sell goods in bulk or in parcels of given quantities.
FREIGHT DEMURRAGE & DEFENSE ( FD&D )
Also referred to simply as “Defense” cover, it is an optional adjunct to a company's P&I coverage. This cover provides the shipowner with legal cover up to a pre-agreed maximum expenditure, by use of either in-house lawyers or specialized International Law firms for legal advice on (non-P&I) legal disputes pertaining to ship operations even when the underlying risk may not be insured by the Club. The scope of cover includes legal advice on matters such as Bills of lading, Charter party disputes, delay, Off-hire disputes, etc.
We aim to provide first-instance advise and support to any claim that is filled either against or on behalf of our shipowning principals and when it becomes necessary, we will obtain the best possible legal appointment that will be required in the given circumstances, may that be in Arbitration or Litigation.
PROTECTION AND INDEMNITY ( P&I )
Our directors, having been in this particular sector of Marine Insurance for many years have had the benefit of building relationships with the various P&I club underwriters and claims handlers with the result that they are able to convey the member's requirements effectively. The collective experience of our team gives us the ability to provide assistance to our clients in the ordinary, and sometimes not so ordinary running of their businesses.
The P&I management of a shipping company can be vital for the loading and discharging of their vessels, and requires the utmost professionalism and ethics. In this respect, our team provides constant advise and support in the handling of the ship's operations together with the shipowner's management team.
We assist our principals with information when required, with respect to the particularities with any of the cargoes proposed to be carried on their vessels, may that be with respect to the nature of the cargo, or its stowage factor, or its specific storage requirements. We shall more often than not, instruct pre-loading surveyors to attend (eg.Steel cargoes), for the purpose of safegaurding carriers interests, especially where cargos are destined for discharging ports with dubious customs (ie. West coast of Africa, etc.).
Should the circumstances require, we will intervene to provide third party claimants and/or contractual receivers with Letters of Undertaking (LOU) and or Bank Guarantees, to avoid detention of the vessel and finally assist in the resolution of any dispute arising out of the carrying of cargoes, onboard our client's vessels, at a later date and time without undue delay.
Protection & Indemnity Clubs (P&I) around the world are mutual non-profit organisations. The basis of mutuality means that the Assureds, that is to say the Shipowners entered in any one Club, are also the Owner’s of that very Club.
The Clubs, and more importantly the shipowners funds in terms of premiums or calls collected are managed by specifically internally elected personnel and overseen by a Board of Directors. Clubs were created to pool multiple shipowners’ reserve funds to thereby protect those very shipowners entered and thus contributing towards the fund from liability claims by the basic principle of insurance: ‘The losses of the few are contributed towards and paid by the many’.
P&I Clubs protect against third party claims arising out of Collisions, Crew and passenger liabilities, Pollution, Cargo liabilities and even the cost of Wreck removal. Furthermore, such Clubs offer claims handling and management, and most importantly offer legal services through the FD&D (Freight, Demurrage and Defence) cover that can be purchased.P&I Cover can be arranged with any one of the 13 Clubs party to the International Group Agreement (IGA), Independent Clubs or Commercial underwriters. As brokers we can directly approach any of the IGA P&I clubs and the Non-IGA clubs.
Having a wide range of P&I experience we negotiate our clients’ annual renewals but also offer ad hoc advice on day to day matters and coordinate claims handling with the Clubs.
If you require further information on the clubs and their regulations, please do not hesitate to click on the links below.
IGA P&I CLUBS:
- American Steamship Owners Mutual Protections and Indemnity Association Inc.
- Assuranceforeningen Skuld
- Gard P&I (Bermuda) Ltd.
- The Britannia Steam Ship Insurance Association Limited
- The Japan Ship Owners Mutual Protection and Indemnity Association
- The London Steamship Owner's Mutual Insurance Association Limited
- The North of England Protection and Indemnity Association Limited
- The Shipowners' Mutual Protection and Indemnity Association (Luxembourg)
- The Standard Steamship Owners' Protection and Indemnity Association (Bermuda) Limited
- The Steamship Mutual Underwriting Association (Bermuda) Limited
- The Swedish Club
- United Kingdom Mutual Steamship Assurance Association (Bermuda) Limited
- The West of England Ship Owners Mutual Insurance Association (Luxembourg)
Non-IGA P&I Clubs
- China Shipowners' Mutual Assurance Association
- Noord Nederlandse P&I Club
- The Korean shipowners' Mutual Protection and Indemnity Association
- South of England P&I Club (No longer in existance)
Non Mutual P&I Clubs
- British Marine Luxembourg S.A.
- Hanseatic P&I
- Ingosstrakh Insurance Company of Russia
- Markel International
- Navigators P&I
- Osprey Underwriting Agencies Ltd.
- Raets P&I b.v. (underwriten by Lloyd's syndicate Amlin)
- Russian P&I Pool (managed by Zeller Associates)
- Aigaion of Greece
- Hydor
- HE.M.P.I.R.A.
WAR & STRIKES HULL INSURANCE - SPECIAL RISK/CONTINGENCY COVERS
War & Strikes Hull Insurance
Provides for losses or damages arising out of war, civil war, rebellion, strikers, and terrorism, as complementary cover to a Hull & Machinery policy. War risks insurance covers the vessel for damage to or total loss due to War risks or War-like activity. It is a customary form of cover for any ocean going vessel.
There are certain areas, specific War zones, as declared by the Joint War Committee, that are excluded from the territorial waters of this annual cover and in order to transit these areas the Shipowner must advise his War underwriters in advance and arrange to pay an Additional Premium (AP) to secure cover whilst transiting.
Piracy was typically covered under the H&M policy, as a standard listed peril in the ITC Hulls clauses 1.10.83, however, nowadays the norm is to exclude it from the H&M and incorporate it into the War policy.
Some War underwriters have a broader definition of piracy, going as far as indemnifying a Shipowner for financial loss by means of a ransom paid, regardless if there has been physical loss or not to the vessel. This depends on the War underwriter, and the terms and conditions agreed, but even in the instance that the ransom is indemnified the maximum reimbursement paid by the War underwriter cannot exceed the value of the vessel, which means if there is both a ransom to be paid and a War total loss, Shipowners will only be entitled to the War value of the vessel.
Kidnap and Ransom Cover ( K&R )
In recent years the necessity to gain additional cover through a ‘Kidnap & Ransom’ policy of insurance has become a constant for Shipowners who conduct business activity in areas of increased pirate activity. The most common of these areas is that of the Gulf of Aden and the Indian Ocean off the north east coast of Africa, emanating mainly from Somalia, but ranging as far out as the south east coast of India and Pakistan, as well as reaching the mouth of the Persian Gulf. Simultaneously, incidents off the West coast of Africa have also begun to increase both in frequency and severity.
K&R policies provide the Shipowner reimbursement for the subsequent financial loss suffered by means of a lump sum ransom payment made to pirates for the release of their vessel once attacked, boarded and misappropriated by pirates or indeed the release of the crew which have been taken off the vessel.
Apart from the cover provided in terms of the actual insurance, specialised K&R underwriters, offer a value-added service of making available experienced expert negotiators, and technical security services to the assured that assist in the coordination, negotiation of such incidents and finally the return of the vessel and its crew to the Shipowner.
We are one of the very few companies the in the Greek market to have had the opportunity to provide this cover to our clients, initially at a per-crossing cover extended to a multi-crossing policy, reducing the cost tremendously.
VESSEL HULL INSURANCE
Hull and Machinery ( H&M )
The Hull and Machinery policy is a basic and primary insurance requirement, necessary for all seagoing vessels. The H&M policy protects the Shipowner’s asset, the Vessel and its machinery, for partial damage or total loss.
H&M Policies cover the subject matter of insurance, the vessel, for a period of time, normally bound for 12 months, for a variety of perils. Typical wordings include: the Institute Time Clauses – Hulls 1.10.83, the American clauses, the Swedish Clauses and Norwegian Hull clauses. The Hull and Machinery policy provides cover for the physical loss or damage for all types of vessels i.e. bulkers, tankers, passenger vessels, tugs, fishing vessels, etc.
The scope, basis and extent of cover provided are adapted to suit individual client’s requirements e.g. Full ITC clauses, Free of Particular Average, Port Risks, etc.
Increased Value ( IV )
Increased Value cover provides the Shipowner with the excess cover, over and above the Hull and Machinery policy, in cases of Total losses and General Average contributions (if required). This is usually limited to the 25% of the H&M value as per the standard Disbursements warranty but its breach can be specifically agreed upon and endorsed to the H&M policy.
Our Services
Our team strives to provide our clients with the best possible cover for both of the above at the most reasonable rates with the international marine hull insurance markets. As EU based insurance brokers we access all the european continental markets, for the purpose of placing risks. We pride ourselves on having conducted marine insurance business for the last twenty years successfully, with an exceptionally expedient claims recovery record.