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ADDITIONAL INSURANCES / PART II / Section H / Clause 1
LIABILITIES ARISING OUT OF SALVAGE SERVICES
in relation to a mutual entry in the Association
This insurance is to indemnify the Assured against liabilities, together with costs and expenses incidental thereto, which may be incurred in connection with any salvage service or attempted salvage service provided to a ship by the Assured or by any sub-contractor of the Assured or any of their respective servants or agents. The following shall be recoverable:
1.1 Salvage ships
Liabilities, together with costs and expenses incidental thereto, arising in respect of the Assured’s interest in an Entered Ship out of events occurring during the period of entry of the Ship in the Association and in connection with the operation of the Ship.
1.2 Oil pollution
Liabilities, together with costs and expenses incidental thereto, caused by an escape or discharge of oil which occurs during such salvage services in accordance with the provisions of Rule 19.12 Pollution, whether or not they are in respect of the Assured’s interest in an Entered Ship (despite the provisions of Rule 3.1 Extent of Cover).
1.3 Salvors’ liabilities
Liabilities, together with costs and expenses incidental thereto, caused by events occurring during such salvage services, and which are not covered under Clauses 1.1 or 1.2 above, whether or not they are in respect of the Assured’s interest in an Entered Ship (despite the provisions of Rule 3.1 Extent of Cover).
1.4 PROVIDED ALWAYS THAT:
1.4.1 Specific cover
there shall be no recovery under this Clause unless cover has been specifically extended in writing by the Managers and the Assured has paid or agreed to pay such additional Call or premium as may be required by the Association;
1.4.2 Risks covered
the cover given under this Clause in connection with any salvage or attempted salvage service provided to a ship shall be in all respects the same as that given under Rule 19.1 to Rule 19.23 inclusive in respect of the operation of Entered Ships, save that in the case of cover given under Clauses 1.2 and 1.3 of this Clause the liability need not have been imposed or incurred in respect of an Entered Ship;
1.4.3 Contracts of indemnity or guarantee
there shall be no recovery against any liability which would not have been incurred but for the provisions of a contract of indemnity or guarantee given by the Assured or the Assured’s subcontractor, or any of their respective servants or agents, unless the Managers shall have approved such contract in advance and the Assured has paid or agreed to pay such additional Call or premium as may be required by the Association (see Rule 19.15 Contracts of Indemnity or Guarantee);
1.4.4 Condition precedent
it is a condition precedent of every insurance under Clauses 1.2 and 1.3 that the Assured and each of the Assured’s Associated Companies, shall at the time when insurance is given under this Clause and thereafter within 30 days before the beginning of each Policy Year, apply to enter for insurance in the Association every ship of which the Assured and each of the Assured’s Associated Companies are then in possession or control, being a ship used or intended to be used in connection with salvage operations, on terms that every such application may be accepted in respect of such one or more ships as the Managers may in their discretion determine.