Presented By: Lars Perkins Vice President Environmental Pollution Group 36 Mill Plain Road, Suite 410 Danbury, CT Phone: (203) Fax: (203)

 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 Clause And 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 (9 th 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 (9 th Cir. 2000) American Home Assurance Co. v. Fore River Dock & Dredge, 321 F.Supp.2d 209 (D.Ma. 2004)