CHARTER FLEET POLICY

Transcription

1 66 Whitecap Drive North Kingstown, RI Tel: Fax: Website: CHARTER FLEET POLICY Table of Contents Items Item 1 Named Insured... Declarations Item 2 Policy Period... Declarations Item 3 Annual Deposit Premium... Declarations Item 4 Limits of Liability... Declarations Item 5 Deductibles... Declarations Item 6 Scheduled Vessel... Declarations Item 7 Navigation Limits... Declarations Item 8 Warranty... Declarations Sections Section 1 Policy Definitions... Page 2 Section 2 General Requirements and Conditions... Page 3 Cancellation... Page 3 Choice of Law... Page 3 Compliance with Applicable Laws... Page 3 Conform to Local and Federal Laws... Page 3 Errors and Omissions... Page 3 Expiration While at Sea... Page 4 Influencing Right of Recovery... Page 4 Insured s Duties in the Event of a Loss... Page 4 Intentional Non-Disclosure / Misrepresentation... Page 4 Other Insurance... Page 5 Producer Clause... Page 5 U.S. Economic and Trade Sanctions..Page 5 Usage Clause..Page 5 Section 3 General Policy Exclusions... Page 5 War Strikes and Related Exclusions... Page 5 Nuclear Event... Page 6 Chemical, Biological, Bio-Chemical and Electromagnetic... Page 6 Extended Radioactive Contamination... Page 7 Other Exclusions... Page 8 Section 4 Coverages... Page 9 Coverage A HULL and MACHINERY... Page 9 Coverage B VESSEL LIABILITY... Page CharterFleetForm - INT 1 All Rights Reserved. May not be copied without permission

2 Section 1. Policy Definitions: a) "Bodily injury means bodily injury, illness, disease, death occurring during the period of this policy arising from ownership, operation and/or use of the Scheduled Vessel or Scheduled Dinghy. b) Covered Person means You, guests aboard the Scheduled Vessel and persons with permission from You to be aboard the Scheduled Vessel. c) Divers means any person using underwater artificial breathing apparatus. d) Electronic Equipment includes all permanently mounted navigational aids including computer systems, communications equipment, permanently mounted televisions, and entertainment systems. e) Equipment includes machinery, electrical equipment, sails, masts, spars, rigging, furniture, dinghy, outboard motor and all other equipment normally required for the operation and maintenance of the vessel and which would normally be sold with a vessel. f) Named Windstorm a storm or weather condition that has been declared as a hurricane, typhoon, tropical storm or cyclone by the U.S. National Weather Service, World Meteorological Organization, Australia Bureau of Meteorology, Philippine Atmospheric, Geophysical and Astronomical Services Administration, the Seychelles Meteorological Service or a similar weather organization. g) Navigation Limits means the specific geographic area where the Scheduled Vessel is covered by this policy. h) Occurrence means loss, damage, costs, fees, expenses or claims arising out of or in consequence of any one accident or occurrence. Each accident or occurrence shall be treated separately but a series of claims arising from the same accident or occurrence shall be treated as due to that accident or occurrence. i) Personal Property means property to include fishing and sports equipment, clothing, and personal effects purchased and owned by any Covered Person, provided that such property is situated on a Scheduled Vessel. Personal property does not include property included within the definition of Scheduled Vessel as defined in (1.e) above. j) Property damage means physical loss or destruction to tangible property arising from the ownership, operation and/or use of the Scheduled Vessel or Scheduled Dinghy. k) Scheduled Vessel in this policy means the vessel(s) listed in Item 6 of the declarations and/or scheduling endorsement and includes machinery, electrical equipment, sails, masts, spars, rigging, furniture, dinghy, outboard motor and all other equipment normally required for the operation and maintenance of the vessel and which would normally be sold with the vessel. l) Sinking means when the Scheduled Vessel has sunk as far as is physically possible for the Scheduled Vessel to sink, and is totally submerged under water. 0115CharterFleetForm - INT 2 All Rights Reserved. May not be copied without permission

3 m) The Underwriter" refers to Falvey Yacht Insurance. n) We, Us, Our and The Company means Falvey Yacht Insurance, LLC and Navigators Insurance Company. o) "You and Your" means the Named Insured shown in Item 1 on the declarations. Section 2. General Requirements and Conditions: a) Cancellation: This policy may be cancelled by either You or Us at any time, subject to 10 days prior written notice. If it is cancelled by Us, We will pay You a pro rata return of premium. If it is cancelled by You, We shall pay You a short rate return of premium calculated at pro rata less 10%. In the event of cancellation for non-payment of premium to Us, The Underwriter reserves the right to cancel the policy back to the last date of earned or paid policy premium. Cancellations due to non payment of premium installment to a premium financier are deemed cancellations by You and given 10 days Notice of Cancellation. b) Choice of Law: The policy is governed by and construed in accordance with the laws of England and Wales and to the exclusive jurisdiction of the courts of England and Wales save that We may, at Our discretion, determine that the applicable jurisdiction shall be that of the jurisdiction where the Underwriter is domiciled or does business. c) Compliance with Applicable Laws: Covered Persons must at all times comply with relevant state, federal, and international statutes, laws, codes, by-laws and US Coast Guard and other regulations, governing the use of the Scheduled Vessel. Should loss or damage occur as a result of any violation of these laws, coverage for said loss or damage shall be excluded from this policy. d) Conform to Local and Federal Laws: Any provision in this policy that conflicts with Local or Federal Law is deemed amended to conform to the minimum requirements of such a law. e) Errors and Omissions: This policy shall not be prejudiced by any unintentional delay, error or omission in the declaration of the vessel provided that upon discovery of the unintentional delay, error or omissions, prompt notice be given to Us as said facts become known to You. 0115CharterFleetForm - INT 3 All Rights Reserved. May not be copied without permission

4 f) Expiration While at Sea: If the Scheduled Vessel is at sea when this insurance expires, it will automatically continue until the Scheduled Vessel arrives safely at her next port of call provided You notify Us as soon as possible and agree to pay any additional premium which We require. g) Influencing Right of Recovery: If You give up Your rights or Our rights to recover damages from anyone who may be liable to You denying Us the benefit of the right of recovery, payment of any covered loss under this policy shall be reduced by the amount We have been denied. h) Insured s Duties in the Event of a Loss: 1) You must immediately take all reasonable measures to reduce any loss or damage which would be recoverable under this policy. Failure to do so may invalidate this coverage or reduce the amount of any claim hereunder. 2) Within 24 hours of Your knowledge of potential loss, You must give Us notification of the loss and its circumstances. 3) You must comply with any reasonable request made of You, by Us with regard to the loss. 4) You must advise the Police, Coast Guard, or any appropriate authority of the loss and its circumstances. 5) You must give Us an opportunity to examine the damage and inquire into the incident including co-operating fully with Us and our representatives. 6) You must neither assume obligation, nor admit liability without Our written permission to do so. 7) You must immediately forward to Us any legal papers or notices received in connection with an Occurrence. 8) You must co-operate with Us in the investigation, defense or settlement of any Occurrence and agree to be examined under oath if We so request. 9) You must allow an examination by physicians of Our choice. 10) You must assist Us in obtaining copies of medical records and reports. 11) If You have the right of recovery from another party who is responsible for an Occurrence and We settle under this policy, that right of recovery will belong to Us. i) Intentional Non-Disclosure/Misrepresentation: This policy is null and void in the event of intentional non-disclosure or misrepresentation of a fact or circumstances material to Our acceptance or continuance of this insurance. 0115CharterFleetForm - INT 4 All Rights Reserved. May not be copied without permission

5 j) Other Insurance: If You have other insurance applicable to loss under this policy, this policy will pay no greater amount than the proportion of the limit of liability stated on the declarations and limit of liability of the other insurance. In respect to COVERAGE B - Vessel Liability, this insurance shall be deemed excess above any other insurance. k) Producer Clause: It is a condition of this Policy, and it is hereby agreed, that the Insured s Producers, as named on the Declarations page, shall be deemed exclusively the agents of the Insured and not of the Company or the Underwriters. Any notice given or delivered by or on behalf of the Underwriters to the said Producers in connection with or affecting this insurance shall be deemed to have been delivered to the insured. l) U.S. Economic and Trade Sanctions: Whenever coverage provided by this policy would be in violation of any U.S. economic or trade sanctions such as, but not limited to, those sanctions administered and endorsed by the US Treasury Department s Office of Foreign Assets Control ( OFAC ), such coverage shall be null and void. m) Usage Clause: It is warranted that the Scheduled Vessel(s) will be used for private/pleasure purposes. It is further understood and agreed that the number of passengers allowed on each Scheduled Vessel shall be subject to manufacturer specifications and/or local regulations. Section 3. General Policy Exclusions The following exclusions are paramount and shall not be modified or superseded by any other provisions and applicable to COVERAGE A - Hull and Machinery, COVERAGE B - Vessel Liability: a) War Strikes and Related Exclusions: This policy excludes loss, damage or expense caused by or resulting from: 1) capture, seizure, arrest, restraint, detainment, confiscation or expropriation or any attempt thereat; or 2) Any taking of the Vessel, by requisition or otherwise, whether in time of peace or war and whether lawful or otherwise; or 3) Any mine, bomb or torpedo 4) Any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; or 0115CharterFleetForm - INT 5 All Rights Reserved. May not be copied without permission

6 5) Civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or piracy; or 6) Strikes, lockouts, political or labor disturbance, civil commotions, riots, martial law, military or usurped power; or 7) Any act perpetrated by terrorists or any act carried out by any person or persons acting primarily from political, religious or ideological motive; or 8) Any threat of terrorist activity, actual or perceived, including closure of ports or blockage of waterways resulting therefrom; or 9) Malicious acts of vandalism, unless committed by the Master or Mariners and not excluded elsewhere under this War Strikes and Related Exclusions clause; or 10) Hostilities or warlike operations (whether there be a declaration of war or not), but this subparagraph (10) shall not exclude collision or contact with aircraft, rockets or similar missiles or with any fixed or floating object, or stranding, heavy weather, fire or explosion unless caused directly by a hostile act by or against a belligerent power, which act is independent of the nature of the voyage or service which the Vessel concerned or, in the case of a collision, any other vessel involved therein, is performing. As used herein, power includes any authority maintaining naval, military or air forces in association with a power; b) Nuclear Events: If war risk or other risks excluded by this clause are hereafter insured by endorsement on this Policy, such endorsement shall supersede the above conditions only to the extent that the terms of such endorsement are inconsistent therewith and only while such endorsement remains in force. Any loss, damage, fine, penalty, or liability or expense due to or arising out of, whether directly or indirectly, nuclear reaction, radiation, or radioactive contamination, regardless of how it was caused. However, subject to all provisions of this policy, if this policy insures against fire, then direct physical damage to the goods insured located within the navigational limits by fire directly caused by the above excluded perils, is insured, provided that the nuclear reaction, radiation, or radioactive contamination was not caused, whether directly or indirectly, by any of the perils excluded by a) and b) of the General Policy Exclusions. Nothing in this policy shall be construed to cover any loss, damage, liability or expense caused by nuclear reaction, radiation or radioactive contamination arising directly or indirectly from the fire mentioned above. c) Chemical, Biological, Bio-Chemical and Electromagnetic: Loss, damage, liability or expense directly or indirectly caused by or contributed to or arising from an actual or threatened act involving a chemical, biological, biochemical or electromagnetic weapon, device agent or material when used in an intentionally hostile manner. 0115CharterFleetForm - INT 6 All Rights Reserved. May not be copied without permission

7 d) Extended Radioactive Contamination: Excludes loss, damage, liability or expense directly or indirectly caused by or contributed to or arising from: 1) ionizing radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel; 2) the radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof; 3) any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; 4) the radioactive, toxic, explosive or other hazardous or contaminating properties of any radioactive matter. The exclusion in this sub-clause does not extend to radioactive isotopes, other than nuclear fuel, when such isotopes are being prepared, carried, stored, or used for commercial, agricultural, medical, scientific or other similar peaceful purposes; HOWEVER, subject to all provisions of this policy, if this policy insures against fire, then direct physical damage to the goods insured located within the navigational limits by fire directly caused by the above excluded perils, is insured, provided that the nuclear reaction, radiation, or radioactive contamination was not caused, whether directly or indirectly, by any of the perils excluded by a and b of the General Policy Exclusions. Nothing in this policy shall be construed to cover any loss, damage, liability or expense caused by nuclear reaction, radiation or radioactive contamination arising directly or indirectly from the fire mentioned above. e) Punitive Damages: No coverage shall be afforded for any penalties, punitive, exemplary, or noncompensatory damages or any damages resulting from the multiplication of or compensatory damages, regardless of cause. f) Certified Acts of Terrorism: Any act of terrorism as defined in and certified under the U.S. Federal Terrorism Risk Insurance Act of 2002, or any of its amendments. g) Pollution: Liability Due to Pollution by Any Substance Whether it be Gradual, or Sudden and Accidental. h) Intentional Acts: Personal injury or property damage Loss caused intentionally by a covered person, a person who lives with a covered person or an employee of entity 0115CharterFleetForm - INT 7 All Rights Reserved. May not be copied without permission

8 named as Assured even if the injury or damage is different in degree or type than intended or expected. An intentional act is one whose consequences could have been foreseen by a reasonable person. i) Racing: Any physical damages, losses or third party claims arising directly or indirectly in whole or in part from an occurrence during instruction, testing or participation for or in any race, speed contests, or pre-arranged handling and performance test. This exclusion does not apply to sailboat races or predicted log contests. j) Cyber Attacks: In no case shall this insurance cover loss, damage, liability or expense directly or indirectly caused by or contributed to by or arising from the use or operation, as a means for inflicting harm, of any computer, computer system, computer software program, malicious code, computer virus or process or any other electronic system. In cases where policies have endorsed war risks back onto the policy, then the paragraph above shall not operate to exclude losses (which would otherwise be covered) arising from the use or any computer, computer system or computer software program or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile. g) Medical Payments: Medical, ambulance, hospital, professional nursing, and funeral expenses that would become necessary due to accidental Bodily Injury to persons injured while in, upon, boarding, or leaving the Scheduled Vessel are specifically excluded h) Uninsured Boater: Damage due to Bodily Injury aboard the Scheduled Vessel arising from a collision with an uninsured or underinsured boater are specifically excluded. i) Personal Property and Personal Affects: Loss or damage to Personal Property of you, and guests while on board the Scheduled Vessel are specifically excluded. 0115CharterFleetForm - INT 8 All Rights Reserved. May not be copied without permission

9 Section 4. Coverages COVERAGE A HULL and MACHINERY a) Insuring Agreement: Subject to the deductible amount shown for COVERAGE A Hull and Machinery set forth in Item 5 of the declarations, this insurance covers all risks of physical loss of, or damage to a Scheduled Vessel, registered with GetMyBoat.com, during the policy period and within the Navigational Limits set forth in Item 7 of the declarations up to the amount of the Hull and Machinery Limit of the Scheduled Vessel as shown in Item 4 of the declarations. If the Scheduled Vessel is partially damaged due to a covered loss, We will pay, the lesser of the cost to repair or replace the damaged hull and machinery with hull and machinery of like kind and quality. b) Exclusions: Unless specifically agreed by Us in writing and for an additional premium charged the following losses are not covered by this policy: 1) damage sustained to a Scheduled Vessel while being transported over land; 2) cost of repairing, replacing or renewing any part condemned solely as a result of latent defect, wear and tear, gradual deterioration, fault or error in design or construction, weathering, insects, mold, animal and marine life, marring, chipping, scratching or denting, osmosis, blistering or electrolysis. Further, subject to all provisions of this policy, any resulting physical damage to a Scheduled Vessel directly caused by latent defect is likewise not covered. Latent defect is defined as a hidden fault in material and/or workmanship of an item which may cause failure or malfunction, but is not discoverable through general inspection or ordinary methods of testing; 3) loss caused directly or indirectly by ice or freezing or extremes of temperature; 4) loss caused by electricity, except lightning, whether it be from an internal or external source, unless fire results. We will then only pay loss caused by fire; 5) loss caused by towing any watercraft behind the Scheduled Vessel, including dinghies 6) Loss or damage to any dinghy 7) theft: theft coverage shall exclude theft or mysterious disappearance of Equipment unless occurring in conjunction with theft of the entire Scheduled Vessel or unless there is visible evidence of forcible entry and/or removal made by tools, explosives, electricity or chemicals; 0115CharterFleetForm - INT 9 All Rights Reserved. May not be copied without permission

10 c) Commercial Towing: We will pay up to the $500 for the reasonable expenses a Covered person incurs if a Scheduled Vessel is disabled from a cause other than a loss covered by this policy. a) Towing to the nearest appropriate facility where repairs can be made d) Sue and Labor/Salvage: Reasonable expenses incurred by You including salvage in attempting to avert or minimize a loss covered by this policy shall be recoverable whether successful or not. These expenses do not include the cost of Your own labor or personal expenses. Such expenses will be paid in addition to the limit of liability of a Scheduled Vessel without application of the policy deductible. The maximum amount We will pay for these expenses is up to the limit of liability of the Scheduled Vessel for COVERAGE A Hull and Machinery. e) Insured Values: The insured value for the Schedule Vessel will be Agreed Value as shown in Item 4 of the declarations. Claims for partial loss or damage of the Scheduled Vessel will be paid based on the necessary costs of repair or replacement without any deduction new for old unless stated differently elsewhere in this policy. The reasonable costs of transporting the Scheduled Vessel to and from the closest appropriate repair yard are reimbursed like costs of repairs. e) Machinery Damage: 1) Damage to electrical and/or mechanical Equipment including, but not restricted to engine, shaft, propeller, rudder, skeg and outdrives over 10 years of age shall be settled on the basis of whichever is the lesser of the following at the time of the loss. a) costs of repairs or replacement using like materials and parts in accordance with good repair practices; or b) the Hull and Machinery Limit set forth in Item 4 of the declarations. 2) Damage to electrical and/or mechanical Equipment including, but not restricted to engine, shaft, propeller, rudder, skeg and outdrives over 15 years of age shall be excluded unless caused by: a) fire or lightning; b) explosion from outside such Equipment; c) grounding; d) collision with another vessel or object; or e) sinking of the Scheduled Vessel. 0115CharterFleetForm - INT 10 All Rights Reserved. May not be copied without permission

11 f) Sails, Canopies and Protective Covers: In the event of loss or damage, cost of repairs to be paid without deduction new for old, for sails, running rigging, canopies and protective covers of canvas or other like fabric materials up to 5 years from fabrication. After 5 years from fabrication, We shall be not be liable for more than the cost of repairs or the actual cash value of the sails, running rigging, canopies and protective covers of canvas or other like fabric materials. g) Bottom Inspection: In the event of a grounding We will pay the reasonable and necessary costs of inspecting a Scheduled Vessel below the waterline within ten (10) days of the grounding event. These costs are not subject to a deductible unless damage is found. h) Named Windstorm Deductible: It is understood and agreed that if the named windstorm deductible listed in Item 5, Deductibles on Your declarations page is higher than the hull and machinery deductible listed in Item 5, Deductibles on Your declarations page, then that increased named windstorm deductible only applies to loss or damage suffered to the Scheduled Vessel while the Scheduled Vessel is south of 35 degrees north latitude. If the Scheduled Vessel suffers loss or damage due to a named windstorm, and it is located on, or north of 35 degrees north latitude, then the deductible for said loss or damage shall match the deductible shown for hull and machinery in Item 5, Deductibles, on Your declarations page. COVERAGE B VESSEL LIABILITY a) Insuring Agreement: We will provide coverage, for any sum or sums which You become legally liable to pay and shall pay as a result of ownership or operation of a Scheduled Vessel on this policy during the policy period subject to the deductible set forth in Item 5 of the declarations and within the Navigational Limits as set forth in Item 7 of the declarations up to the amount of the Vessel Liability Limit as shown in Item 4 of the declarations. We will settle or defend as We deem appropriate any claims or suits brought against You, using attorneys of Our choice. If You are legally required to raise, remove, or destroy the wreckage of a Scheduled Vessel, We will pay up to the limit of liability for the Combined Single Limit set forth on the declarations under Item 4. Our obligation to settle or defend all third party liability claims under this policy ends when the amount We pay for damages and or removal of wreck relating to this COVERAGE B Vessel Liability, exceeds the limit indicated on the declarations under Item CharterFleetForm - INT 11 All Rights Reserved. May not be copied without permission

12 b) Exclusions: Unless specifically agreed by Us in writing, the following losses are not covered by this policy: 1) liability assumed by You under any contract or agreement except for those necessary by marinas for mooring or overnight stays and those covering charter agreements and contracts; 2) Covered Persons with regard to their liability to You, other Covered Persons; 3) liability which arises while the Scheduled Vessel is being transported on its own Trailer or otherwise, except where the Scheduled Vessel is being hauled out or launched by a Covered Person; 4) fines or penalties imposed by any government agency; 5) Bodily Injury/Property Damage or death benefit to any persons employed by You or which are required to be covered by any State or Federal Act or Statute or any other compensatory statute; 6) liability to persons being towed, or to be towed, or having been towed in the water or in the air, from the time they commence to leave the Scheduled Vessel, until they are safely back on board; 7) liability to Divers operating from the Scheduled Vessel, from the time they commence to leave the Scheduled Vessel, until they are safely back on board; 8) liability for damage to any marine estuary, artificial or natural reef, living or dead coral or other marine organisms, caused by the Scheduled Vessel or its operators or passengers; 9) loss or damage to any other vessel caused by the Scheduled Vessel in so far as the same would have been covered under Coverage A Hull and Machinery of this policy. 10) liabilities, medical expenses, costs, fees or any other related expense whatsoever arising out of illness or injury in any way related to or caused by exposure to the sun or the suns rays either cumulatively or suddenly; 11) any claim directly or indirectly caused by or associated with Human T-Cell Lymphotropic Virus type III (HTLV II) or Lymphadenopathy Associated Virus (LAV) or the mutants, derivatives or variations thereof or in any way related to Acquired Immune Deficiency Syndrome or any syndrome or condition of a similar kind howsoever it may be named; and 12) any claim arising from a vessel, less than 16 feet, propelled by a waterjet pump or other machinery as its primary source of motor propulsion which is designed to be operated by a person sitting, standing or kneeling on, rather than being operated by a person sitting or standing inside the vessel. 0115CharterFleetForm - INT 12 All Rights Reserved. May not be copied without permission