The Passenger Vessel Association (PVA) recently distributed the following to advise its members regarding terrorism insurance.
The shocking events that occurred on September 11 took all of us by surprise. Since then, we've all started to ask ourselves some basic questions that will help us to protect our companies, property, and employees from further harmful situations, if they should occur. One of these important protective elements is insurance.
Many vessel operators who need more information about how to protect their businesses have approached the people at Aon Risk Services, the PVA Endorsed Insurance Program. There has been some conflicting information was to whether Terrorism/Malicious Acts are insured under the PVA Insurance Program. This is to confirm that terrorism and Malicious Acts are covered
under the Hull & Machinery and P&I Insurances subject to the terms and conditions of the policy.
The PVA Insurance Program insurer, ACE Insurance Company (formerly CIGNA) also has agreed to offer additional insurance for "War Risks". Generally,
this may be of greater interest to the coastwise operators. However, it is only available to PVA members insured through the PVA Endorsed Insurance
Program. The cost for war coverage is estimated as follows:
Hull War: .05% x Vessel Value (100% value subject to $1 mil)
P&I War: .025% x Limit ($1,000,000)
Minimum Premium: $500
For example: $650,000 Insured Value
Hull War Premium: $325
P&I War Premium: $250
Total War Premium: $575
Questions concerning your current coverage or for a quote, please contact your agent or one of the following Aon/PVA Insurance Brokers (Ginny Cernik, Greg Goodrich, Denis Galterio, Jennifer Bell) at