ADDITIONAL INSURANCES / PART II / Section I - Specialist Operations / Clause 1

SPECIALIST OPERATIONS

This insurance is to indemnify the Assured in respect of liabilities, losses, costs and expenses as would be covered by the Association but for Rule 21.1.8 Specialist Operations¹.  Accordingly, the following shall be recoverable:

1.1

Claims relating to liabilities, losses, costs and expenses of an Entered Ship² used for dredging, blasting, pile-driving, well-intervention, cable or pipelaying, construction, installation or maintenance work, core sampling, mining, depositing of spoil, and power generation and decommissioning, and such other operations as may be determined by the Managers from time to time, to the extent that such liabilities, losses, costs and expenses arise as a consequence of:

1.1.1 claims brought by any party for whose benefit the work has been performed, or by any third party (whether connected with any party for whose benefit the work has been performed or not)

1.2 PROVIDED ALWAYS THAT:

1.2.1 There shall be no recovery in respect of any liabilities, losses, costs and expenses in respect of:

1.2.1.1 loss of and/or damage to the Assured’s owned, chartered, operated or managed ships, property, plant and/or equipment; and the loss of use of such property and/or loss of earnings or additional expenses of any kind or description arising therefrom;

1.2.1.2 loss of and/or damage to third party cargo and/or equipment carried on board the Assured’s conveyances;

1.2.1.3 the failure to perform such specialist operations by the Assured or the fitness for purpose or quality of the Assured’s work, products or services;

1.2.1.4 any loss of or damage to the contract work³

1.2.2 Contracts of indemnity or guarantee
There shall be no recovery against any liability which would not have been incurred but for the provisions of a contract of indemnity or guarantee given by the Assured unless the Managers shall have approved such contract in advance and the Assured has paid or agreed to pay such additional Call or premium as may be required by the Association (see Rule 19.15 Contracts of indemnity or guarantee⁴) provided always that

1.2.2.1 this exclusion shall not be construed to apply to liabilities, losses, costs and expenses arising under any form of contract of indemnity or guarantee where the contract of indemnity or guarantee is deemed by the Association to be poolable⁵.

¹ For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 21.1.8 shall include reference to Charterers’ Liability Insurance Clause 28.1.8 Specialist Operations.

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 ‘contract’ refers to the contract pursuant to which the specialist operations are performed; and ‘contract work’ the work performed under the contract.

⁴ For the purposes of this Clause, where the Assured is insured under the Association’s Charterers’ Liability Insurance the reference to Rule 19.15 shall include reference to Charterers’ Liability Insurance Clause 15 Contracts of indemnity or guarantee.

⁵ For the purposes of this Clause ‘poolable’ shall mean a contract of indemnity or guarantee that falls within the pooling eligibility criteria of the Pooling Agreement of the International Group of P&I Associations; or, applying similar criteria, falls within the cover terms set out in the Association’s Charterers’ Liability Insurance.