Presented By: Lars Perkins Vice President

Environmental Pollution Group36 Mill Plain Road, Suite 410

Danbury, CT 06811Phone: (203) 730-8833 Fax: (203) 730-8863

EPGViking@aol.com

Underwriting Vessel Pollution Risks Since 1989

Security – 100% Lloyd’s Primary Limits Up To $10,000,000

Available $294M XS $6M Excess Limits Available War Risks – Including Terrorism Marine Professional Liability Coverage

Hull Policy Protection & Indemnity Policy Pollution Policy

Coverage For Loss/Damage To Vessel Collision Liability General Average & Salvage Sue & Labor

Coverage For Liabilities Arising Out Of Ownership Or Operation Of A Vessel

– SP-23 Fourteen Numbered Insuring Clauses

– Paragraph (7) Removal Of Wreck Liability for costs or expenses of, or incidental to, the removal of the wreck of the vessel named herein when such removal is compulsory by law …

Historically P&I Risk Stand Alone Pollution Policy Required Due

To Pollution Exclusions In Hull and P&I Policies

Older Forms Exclude By Endorsement e.g., SP23 & SP38

Newer Forms Exclude It Within Body Of Policy

Pollution Buyback A – Limited Coverage

Key Provisions

• Strict Liability Statute (Spilling Vessel Responds Without Regard to Fault)

• Responsible Party Liable For– Removal Costs & Expenses 33 USC § 2702(b)(1)– Damages 33 USC § 2702(b)(2)(A-F)

A) Natural Resources; B) Real or Personal Property; C) Subsistence Use; D) Revenues; E) Profits & Earning Capacity; and F) Public Services

• Loss Of Right To Limit Liability 33 USC § 2704(c)(2)(C)

Pollution Insuring Clauses Do Not Address Removal Of Hull

Covers Pollutant Removal Costs & Damages

Avoids Coverage Duplication Keeps Premiums Lower Lack Of Hull/P&I Coverage Is A Material

Pollution Underwriting Consideration

Relevant Insuring Clauses

Hull Policy - Sue & Labor ClauseAnd in case of any Loss … it shall be lawful and necessary for the Assured … to sue, labor and travel for … the defense, safeguard and recovery of the Vessel …

P&I Policy – Removal Of Wreck Cost or expense of, or incidental to, any attempted or actual removal or disposal of obstructions, wrecks or their cargos under statutory power or otherwise pursuant to law, PROVIDED, however, that there shall be deducted from such claim for costs or expenses, the value of any salvage from the wreck inuring to the benefit of the Assured or any subrogee thereof.

• Port of Portland v. Water Quality Insurance Syndicate, 796 F.2d 1188 (9th Cir. 1986)

• Kearny Barge Co. v. Global Insurance Company, 943 F.Supp. 441 (D.N.J. 1996)

• Quigg Brothers-Schermer, Inc. v. Commercial Union, 223 F.3d 997 (9th Cir. 2000)

• American Home Assurance Co. v. Fore River Dock & Dredge, 321 F.Supp.2d 209 (D.Ma. 2004)