We would like to bring the additional Ship Owners Liability (SOL) product to your attention once again. Not because the cover is new, but because situations continue to arise in day-to-day practice where this cover may provide a solution.
In practice, such changes often arise at the last minute: the vessel sustains damage during the voyage and requires repairs, a charterer requests a different port of discharge, the original bill of lading is not available in time, or the cargo must be carried onwards by another carrier after the sea voyage to reach its final destination.
The issue is not so much the operational decision itself, but the potential liability that may arise from it and may fall outside standard P&I cover. A deviation may, for example, affect the defences or limitations of liability available to the carrier. Discharging cargo without presentation of the original bill of lading into storage can result in additional liabilities may result in additional liabilities excluded under P&I cover. In the case of onward carriage, the responsibility of the original carrier may also extend beyond the actual sea voyage.
These are precisely the situations in which additional SOL cover may be relevant.
Complementary to P&I
SOL cover is not an alternative to P&I, but a complementary cover for specific liability risks that, due to the circumstances of the voyage, fall outside the scope of standard P&I cover. That is why, when plans change, it is important to consider not only whether the proposed course of action is operationally feasible, but also how it may affect the insurance cover.
The precise consequences will, of course, depend on the circumstances and the applicable transport documents and terms. NNPC Marine Insurance will be pleased to assist by assessing whether additional SOL cover is necessary or advisable for the voyage concerned and can arrange such cover relatively quickly.
For questions or further information, please contact our Underwriting team at underwriting@nnpc-marine.com.
