P&I War Risks Cover
The basic cover under the P&I rules of the Standard Club excludes war and terrorism risks, but all members are provided with excess P&I war and terrorism risks cover up to a limit of $500 million. The excess point for this cover is the proper value of the ship (deemed not to exceed $100 million) or the member’s other war risks coverages, whichever is the higher.
War and terrorism cover can also be provided in respect of any additional risks for which a member may have cover with the club.
Cover is also extended, in respect of standard cover, to include a limited amount of biochemical war and terrorism cover. The limit is $30 million, and cover is only for crew risks and legal expenses incurred in defending other types of P&I claim.
War Risks Class
The War Risks Class provides hull and P&I war risks cover, including detention and diversion expenses, principally for British shipowners. However, the War Risk Class can also cover ships that do not fly the British flag or that are not British beneficially owned. The cover is more extensive and limits are higher than is generally available from the commercial war risks insurance market, and the cost is generally very competitive.
Through its War Risk Class, the club is a member of the Combined Group of War Risks Clubs, which pool claims and purchase reinsurance from the commercial reinsurance market. The class has substantial free reserves, the income from which has been used in recent years to subsidise the already low premium costs for its members. In addition to a substantial amount of directly entered tonnage, the club reinsures The Canadian Shipowners Mutual Assurance Association.
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