All Inclusive Crew Cover
All Inclusive Crew Cover will protect a shipowner and provide insurance for crew liabilities and liabilities against third-party interests not covered under P&I insurance. Circumstances covered include:
Pre-delivery crew
In the process of taking over a second-hand ship, the future owner is likely to send a number of officers and engineers on board to familiarise themselves with the ship. From the moment the crew commences the journey to the ship, the future owner is likely to assume liability according to the terms of their employment contracts.
During the time on board, the crew may become ill or injured. They may further cause damage to the not yet delivered ship, or other third-party interests, for which they and their employer may be liable.
However, since the future owner is not the owner by title, it has no cover under P&I insurance, as P&I cover is limited to liabilities in its capacity as an owner, operator or charterer of the ship.
Crew attending at a shipyard
To familiarise themselves with a newbuilding, the crew may join the vessel prior to the official delivery date. They may also act as representatives of the shipowner at the yard.
Since the newbuilding is not yet delivered, there is no P&I cover for the ship. However, the shipowner is likely liable for the crew and damage caused to the vessel or third-party interests.
These risks can be addressed by additional cover, added prior to ordinary P&I cover.
Quite often the P&I Club confirms cover for these liabilities provided that the period is reasonable and limited to a couple of weeks. However, for longer periods, or if the P&I Club cannot provide cover, an all-inclusive crew cover is necessary. By definition, the vessel’s P&I insurance covers liabilities for crew of the entered ship who are on board or proceeding to or from that ship.
Liabilities for crew on leave involved in a training course or seminar are not covered under P&I insurance. The All Inclusive Crew Cover provides insurance for such occasions.
This insurance is tailor-made in line with the requirement of the individual member, making it an all-inclusive complement to the P&I insurance in terms of crew liabilities during the policy period.
Crew attending training courses
From time to time, most shipowners will arrange for crew to attend seminars or training courses when they are on leave. Since the crew technically is not on board an entered ship, the P&I cover is not in place. However, the shipowner may still be liable for its crew in accordance with their contracts of employment.
Superintendents at a shipyard or on board
Similar situations as described for the crew above may also be applicable for Superintendents at the yard taking delivery of a ship or on board a vessel to be purchased. The shipowner’s cover under the P&I insurance may not be sufficient, and it may assume liabilities outside the scope of the P&I insurance, which are not covered under the insurance for shore-based personnel.
Note: Shore-based personnel should regardless be covered under an employer’s liability insurance, which will always be the primary insurance based on the nature of P&I cover.
Who can be covered?
Shipowners covered with The Swedish Club for P&I.
Limits
USD 10 million.
Deductibles
- Crew liabilities: Agreed crew deductible.
- Third-party liabilities: USD 20,000
Important Exclusions
Excluding claims recoverable under the ship’s ordinary P&I insurance or covered under other insurance, which will take precedence.