The liability provisions in charterparties and contracts in the offshore industry usually include a “knock-for-knock” in respect of property and an exclusion of consequential losses. These liability provisions depend in practice on the structure of the parties’ insurances. There are likely to be at least three parties involved: the operator of an oil or gas field, which is at risk in respect of the wells involved and any other existing property, the main contractor for the project, which will require a liability insurance, and the Owner(s) of the offshore vessels involved, which will usually have P&I insurance.
This session will look at the different insurances involved, and examine the way in which risks are allocated between them.
Issues for discussion:
* Construction All Risks insurance for the project itself under the WELCAR form.
* Liability insurance under the WELCAR form and the standard exclusions from this insurance.
* What insurance is available to cover existing property?
* The “contract works” exclusion from Club cover and from the Clubs’ “Specialist Operations” cover.
* The “Specialist Operations” exclusion from Club cover.
* The buyback “Specialist Operations” cover available through the Clubs and its placing in the market.
* “Top-up” marine liability insurance above the limit for the vessel’s specialist operations cover.