So far, P&I Insurance has operated continued to afford liability cover without any specific exclusions for incidents arising out of COVID-19. However, fixed premium and Charterers’ P&I covers are reinsured outside the International Group’s Pooling Agreement and with effect from 20.2.2021 and will be subject to the Coronavirus Exclusion Clause (LMA 5395) and The Cyber Endorsement (LMA 5403) in the Rules for Mobile Offshore Units (MOUs).
The coronavirus exclusion for marine and energy provides:
“This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith.
This insurance excludes coverage for:
1) any loss, damage, liability, cost, or expense directly arising from the transmission or alleged transmission of:
a) Coronavirus disease (COVID-19);
b) Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2); or
c) any mutation or variation of SARS-CoV-2;
or from any fear or threat of a), b) or c) above;
2) any liability, cost or expense to identify, clean up, detoxify, remove, monitor, or test for
a), b) or c) above;
3) any liability for or loss, cost or expense arising out of any loss of revenue, loss of hire,
business interruption, loss of market, delay or any indirect financial loss, howsoever
described, as a result of any of a), b) or c) above or the fear or the threat thereof.
All other terms, conditions and limitations of the insurance remain the same.”
Gard have recently announced that they will offer Members and clients in respect of the categories of covers listed below a special extension of cover. The extension of cover (hereinafter referred to as the ‘Special Covid-19 Extension’) shall comprise liabilities, losses, costs and expenses falling within the scope of terms of entry agreed but for the Coronavirus Exclusion Clause (LMA 5395) and subject to a sub-limit of USD 10 million per ship or vessel per event. This extension does not apply to the Cyber Endorsement.
