Many people assume that war risks cover is for ships operating in high-risk areas, but war risks cover is actually much wider, protecting your vessels from malicious damage or loss from third parties, virtually anywhere.
Our Rules booklet details the exact cover, but in principle UK War Risks cover fills the gaps that your hull insurance and P&I insurance exclude, covering three primary areas:
Core cover
Cover against loss or damage to hull and machinery
This includes loss of or damage to the hull and/or freight caused by:
- war, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, any hostile act by or against a belligerent power
- capture, seizure, arrest, restraint or detainment
- mines, torpedoes, bombs or any other weapons of war
- strikers or others taking part in labour disturbances, riots or civil commotion, terrorists or any person acting maliciously or from a political motive
- piracy or violent theft
- confiscation or expropriation.
The cover is set out in the Club Rules Part 2A.
Cover for detention or diversions
In addition, your UK War Risks cover insures you against the risk of various losses and expenses due to detention or diversion, which is caused by:
- warlike operations, civil war, revolution
- any hostile act by or against a belligerent power
- compliance with any order, prohibition or direction made or imposed by the Directors to avoid any insured loss to the hull or freight
- compliance with any order, prohibition or direction made by any government with the right to give such orders, or made by any other government or military authority for the purpose of furthering its political aims.
The cover is set out in the Club Rules Part 2B.
Cover for P&I claims related to war risks
The Club also offers Members cover for P&I claims arising out of or in consequence of a war risk that will be excluded in mainstream P&I cover. This includes:
- loss of life
- personal injury
- illness, expenses in respect of captured or detained crew
- collision, damage to fixed and floating objects
- wreck removal and cargo claims.
The cover is set out in the Club Rules Part 2C.
See how UK War Risks cover compares to others
King’s Enemy Risks
For Members operating under the Red Ensign, we also cover for certain risks arising out of war involving the UK, known as “King’s Enemy Risks” or “KER” cover. The risks covered are:
- hull risks
- detention
- collision liability
- wreck liability
- risks of requisitioned or chartered ships
KER cover applies only to ships registered in the UK, the Isle of Man, the Channel Islands or any British overseas territory. It is reinsured by the UK Government.
General exclusions
Our UK War Risks cover is subject to general exclusions including:
- losses covered by hull policies (ITC-Hulls)
- losses due to war between any of the following: the United Kingdom, the United States of America, France, the Russian Federation, the People’s Republic of China (“the Five Powers”)
- losses due to chemical, biological, bio-chemical and electromagnetic weapons or computer viruses
- imprudent conduct.
Cover is also subject to seven days’ notice of cancellation, with reinstatement after expiry on new rates, terms or conditions. This provision is used to allow the addition of new additional premium (“AP”) areas.
Limits
Our cover for the 2024 Policy Year is subject to separate limits of:
- the ship’s value for hull and machinery up to US$1 billion
- for war risks P&I liabilities US$500 million
The UK War Risks advantage
When something happens, it will be the experience and expertise of our team that makes the difference.