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Summary

This policy will cover a ship mortgagee (bank or other lender) against the risk of claims from the hull and machinery/war risks/protection and indemnity coverage being rejected or declared void, in whole or in part, as a result of a breach of any warranty or condition of the ship owner insurance policies. It also applies should such a policy be automatically terminated for any reason that the insured named in the policy had no control over, had been privy to, or had any prior knowledge of. For example, a vessel knowingly trading outside the navigation limits specified in the hull and machinery policy.

Scope

The policy covers a mortgagee’s loss resulting from loss or damage to or liability of the mortgaged  vessel  which would prima facia be covered by the ship owner’s policies or protection and indemnity entry/policy on such vessel, but which there is subsequent non-payment by any of the owner’s insurance carriers.    

Brokers

Divisional Specialists

Marine