Loss or damage caused by an act of war including civil war, revolution, rebellion, riot, hijacking or detention whereas normally these risks are excluded from the usual coverage. Such cover is given under other standard clauses like the Institute War and Strikes Clauses. It is also now common place for the War Risk policy to cover such risks as terrorism, piracy and hijacking.

War risks insurance is designed to cover risks that standard hull insurance and P&I insurance choose to exclude. This typically includes damage or loss caused by:

– war, civil war, revolution and rebellion
– capture, seizure, arrest, restraint or detention
– mines, torpedoes, bombs or other weapons of war, even when derelict
– damage or loss caused by strikes and labour disturbances
– terrorists, people acting maliciously or from a political motive
– piracy or violent theft by people from outside the ship

In addition to the physical damage that may be caused to the ship from an act of war, most marine war risk policies will incorporate the primary cover that would otherwise be given by the vessel’s P&I Club for any third party liabilities. This cover is normally limited to an amount equivalent to the vessel’s hull value, thereafter the P&I Club provides cover on an “excess” of hull value basis. This covers the legal liability and expenses that a charterer may face as a result of war or terrorism risks.

Islamic P&I Club’s War Risks, we work with brokers all around the world to provide comprehensive international war risks cover for ships of all size and type. Our aim is to provide the best possible insurance for the clients, while making it faster and simpler to organize cover, manage changes and oversee any claims that may arise.