1 We insure you for:

1.1 Physical loss of and damage to insured carrying equipment arising from:

1.1.1 an accident

1.1.2 war/strikes riots & terrorist risks or piracy

1.2 Your liability for general average and salvage contributions in respect of insured carrying equipment (including war/strikes riots & terrorist risks and piracy)

2 We do not insure you under this clause for:

2.1physical loss or damage arising from:

2.1.1 defects in design/manufacture

2.1.2 wear and tear

2.1.3 mechanical/electrical breakdown or malfunction

2.1.4 equipment found to be missing on stocktaking, if you are unable to provide reasonable proof of the accident which caused the loss

2.2 loss/damage to lights, winding handles, tyres/wheels of a chassis/trailer unless due to loss of the chassis/trailer or to an accident also damaging another part of the chassis/trailer  

2.3 risks:

2.3.1 while the equipment is leased to someone else

2.3.2 after you cease to have an interest in the equipment 

2.4 loss/damage - except actual total loss - to equipment valued as at 6 below at less than:

2.4.1       USD 5000:        reefer/tank container; reefer/tank trailer; rail wagon

2.4.2       USD 3000:        trailer (except as specified in 2.4.2)                       

2.4.3        USD 1000:       all other carrying equipment                                  

Qualifications

3 Declaration

3.1 You will show in your declaration the number of items - and aggregate insured value on the adjustment date - of each type of carrying equipment

3.2 You will not reduce the insured value of any item during your account year

4         Container Stowage & Securing System

The Directors may reduce or reject a claim arising from container stowage on a ship which you own or charter to the extent that the claim is incurred or increased by:

4.1      your failure to adhere to the relevant provisions of the SOLAS Convention, IMDG Code or any other IMO Code or

4.2      a stowage/securing system which is deficient unless:

4.2.1 the system:

a. complies with classification society recommendations or
b. has been approved by an organisation which the Managers have approved or

4.2.2 you have taken other reasonable measures to ensure the system was appropriate

5         War/SR&T (Strikes Riots & Terrorist) & Piracy Risks

5.1    CTL (Constructive Total Loss)

If you are deprived by seizure of equipment for a continuous period of 12 months, we will regard this as a constructive total loss for the purposes of your insurance for war/SR&T or piracy risks at the date this period commenced - provided that the equipment:

5.1.1 was insured for war/SR&T or piracy risks on that date and

5.1.2 had not already become a total loss as a result of an insured risk at some time during the period

5.2    We do not insure you for war risks arising from:

5.2.1 hostile detonation of a nuclear weapon

5.2.2 war (declared or not) between permanent members of the UN Security Council

5.2.3 seizure by an authority of your country

5.2.4 seizure under any customs or quarantine regulation

5.2.5 ordinary judicial process, failure to pay a fine/penalty or provide security or any financial cause

5.3      The Managers may at any time decide that we will not insure you for war, SR&T or piracy risks either entirely or in respect of your equipment which is in any country, territory or area (whether of land or sea). The Managers will notify you by Circular as at G2:41 of this decision, which will take effect at 2400 GMT on the seventh day after notice is given

5.4           Our insurance for war risks in respect of equipment which is not on board an oversea ship or aircraft when the loss/damage occurs is subject to a limit of USD 50,000 each accident and in the aggregate each account year.  For the avoidance of doubt, this limit does not apply to piracy or SR&T risks (unless arising from war) and cover is in any case subject to 5.3

5.5           Insurance for war, SR&T and piracy risks will automatically terminate on: 5.5.1 hostile detonation of a nuclear weapon (anywhere - whether your equipment is involved or not)

5.5.2 war as at 5.2.2

6         Amounts Recoverable

Amounts recoverable from us will not exceed:

6.1      Owned equipment:

6.1.1 Loss:                   insured value at time of loss  

6.1.2 Damage:             reasonable repair costs - not exceeding insured value

6.2      Leased equipment:

6.2.1 Loss:                   amount payable under lease - or insured value if no amount specified

6.2.2 Damage:              reasonable repair costs - not exceeding amount payable under lease

7         Constructive Total Loss (CTL)

If the reasonable repair costs of repair of damage sustained in one accident are estimated to exceed the applicable amount specified at 6 above, we will pay this amount as a CTL, less any salvage value

8         Interest in Ship/Aircraft

G1:5 does not apply to this clause

9         Storm Earthquake Flood SR&T

An extended definition of accident, stated at G2:40, applies to storm, earthquake, flood and strikes riots & terrorist risks

1 We insure you for your liability for: 

Physical loss of and damage to cargo, and resulting consequential loss, arising before or after you have carried (or arranged to carry) the cargo and from an item of insured carrying equipment supplied to your customer which:

1.1 is defective or

1.2 otherwise fails to meet the requirements of your contract with your customer

2 We do not insure you under this clause for:

2.1 if your liability arises under your contract of carriage

2.2 for liabilities in respect of bullion, precious stones or cash/securities  

2.3 for liabilities arising from cargo found to be missing on stocktaking, if you are unable to provide reasonable proof of the accident which caused the loss  

2.4 for liabilities excluded at G1:2

Qualifications

3 Limits 

3.1 USD 100,000 each accident and in the aggregate each account year: applies to claims under 1.2

3.2 USD 100,000 each accident: applies to claims in respect of:

a. processed tobacco/tobacco products
b. bottled spirits
c. precious jewellery/precious metal
d. valuable works of art
e. thoroughbred horses
f. computers/handheld electronic products/mobile telephones (and electronic components of these)

1 We insure you as stated below

1.1 We insure you for your liability for the following, including resulting consequential loss: 

1.1.1 physical loss of and damage to third party property

1.1.2 death, injury or illness of any third party

1.1.3 pollution 

1.2 We insure you for your liability to indemnify a third party for its liability for the following, including resulting consequential loss: 

1.2.1 physical loss of and damage to third party property

1.2.2 death, injury or illness of any third party except as at 1.2.3

1.2.3 death, injury or illness of your employee unless excluded at 2.1

1.2.4 pollution 

1.3 We insure an assured for liabilities directly to an employee of a joint assured and conversely a joint assured for liabilities directly to an employee of the assured or another joint assured 

2 We do not insure you under this clause for liabilities:

2.1 for death, injury or illness of your employee which you incur as an employer or which would normally be insured under an Employers Liability insurance

2.2 arising from ownership, lease or operation by you/your employee of a road vehicle which is required to be licensed

2.3 arising from an accident on a public road in USA/Canada or Mexico involving a trailer or chassis  

2.4 in respect of your owned or leased:

2.4.1equipment leased to someone else - other than to your joint service/venture partner for use in the joint service/venture

2.4.2 carrying equipment which we do not insure for loss/damage

2.5 as owner/lessee of land which is not an insured location

2.6 arising from erection or dismantling of handling equipment - unless for inspection, maintenance or repair (or movement which is not excluded under 2.7)

2.7 arising from movement of handling equipment - other than within the same terminal, port or depot

2.8 excluded at G1:2

2.9 in respect of any risk which is insured at S4

Qualifications

3 Limits of Liability

In the event that it is held in any court or tribunal that anyone, other than the assured or a named joint assured or co-assured, is entitled to be insured under this insurance, then the limit of liability for this insurance for such a person will not exceed the lesser of the minimum insurance requirements under the applicable law and the limit stated in your policy 

1 We insure you for:

1.1 The following, imposed on you by an authority, as a result of breach of regulations listed at 1.3:

1.1.1 Fines and other penalties, including confiscation

1.1.2 Duty and sales/excise tax and similar fiscal charges

1.1.3 Costs  

1.2 Liability for financial loss incurred by a third party as a result of a liability specified at 1.1

1.3 The regulations referred to at 1.1 relate to:

1.3.1 import/export and carriage of cargo, conveyances or equipment 

1.3.2 immigration

1.3.3 safety at work, including corporate manslaughter and corporate homicide

1.3.4 security/anti-terrorism

1.3.5 pollution - but only if arising from physical loss or damage of cargo or equipment:

2 We do not insure you under this clause: 

for liability/confiscation arising from:

2.1 breach of regulations relating to competition or regulation of companies or privacy and protection of personal data, including the General Data Protection Regulation (GDPR)

2.2 ownership, lease or operation by you/your employee of a road vehicle which is required to be licensed

2.3 your owned/leased carrying equipment which we do not insure for loss/damage

2.4 your making your customs bond/guarantee available to another person - unless this arises from:

2.4.1 assistance which an operator provides to you in your insured services 
or
2.4.2 other insured services which you provide

Qualifications

3 Intentional or Reckless Conduct

The Directors may in their discretion reduce or reject a claim if you or your employee have acted (or failed to act) intentionally or recklessly.

4 Illegality

If insurance for any of the matters specified at 1 above is held to be illegal, this will apply only to the matters concerned and will not affect other insurance under this clause or elsewhere in your policy 

5 Enforcement of Reimbursement

If it is held by a court or tribunal that you have no right to enforce reimbursement of a claim under this clause, we undertake to treat the claim as if your right is enforceable unless it would be illegal for us to do so.

6 Limit

Limit for claims under 1.3.5: GBP 1 million each accident and in the aggregate each account year 

1         We insure you for the following costs (subject to S5:3):

1.1      Mitigation

Costs of minimising a claim  

1.2      Investigation & Defence

Costs arising from investigating an accident which may give rise to a claim and protecting your interests in relation to it (including legal and survey fees) - including the costs of recovering a debt if payment is withheld solely because of a claim  

1.3      Disposal

Costs additional to costs which you would have incurred in any event, of disposing of or removing insured carrying equipment or cargo after an accident to it, subject to G1:5

1.4      Quarantine & Disinfection (including fumigation)

Costs other than costs incurred in the normal course of business

1.5      Clean Up Costs

Clean up costs which you incur under compulsorily applicable law or by order of an authority

2         We do not insure you under this clause for:

2.1      costs which are insured under S4:1.1.3

Qualifications

3         Approval/Agreement

We only insure you if:

3.1      the Managers have agreed to the costs or

3.2      the Directors decide that the costs were properly incurred

4         Limits

Claims are subject to limits as below:

4.1      1.1-1.2: as for the claim being investigated/defended, or mitigated, and costs will be included in this claim for this purpose

4.2      1.3-1.4: as stated in your certificate  

4.3      1.5:        USD 1 million each accident and in the aggregate each account year

5         Deductibles

Claims are subject to deductibles as below:

5.1      1.1:        as for the claim being mitigated

5.2      1.2-1.5: nil

6         Interest in Ship/Aircraft

G1:5 does not apply to costs specified at 1.1 and 1.2 if the claim (or possible claim) is under S1

7         Clean Up Costs

We do not insure you under this clause for costs under 1.5 which are insured under any other provision in your policy