ADDITIONAL INSURANCES / PART II / Section D - Extended Towage Liabilities / Clause 1

EXTENDED TOWAGE LIABILITIES

This insurance is to indemnify the Assured in respect of liabilities, losses, costs and expenses as would be covered by the Association under Rule 19.14.2 Towage by an Entered Ship^{1, 2} but where, in the opinion of the Association, the Assured has prejudiced or may have prejudiced such coverage from the Association by virtue of the operation of Rule 19.14.2.2³ and the towage contract failing to conform to the requirements of the Association.

1.1 This insurance excludes liabilities, losses, costs and expenses arising out of:

1.1.1 the towage of rigs, platforms and/or any other offshore structure; and/or

1.1.2 towage contracts subject to the federal or state law of the United States of America.

1.2

¹ For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.14.2 shall include reference to Charterers’ Liability Insurance Clause 14.2 Towage by the Chartered Ship.

² For the purposes of this Clause the term ‘Entered Ship’ shall include a ‘Chartered Ship’ covered under the Association’s Charterers’ Liability Insurance.

³ For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.14.2.2 shall include reference to Charterers’ Liability Insurance Clause 14.2.2.