Overview of WQIS Worldwide Vessel Pollution Policy Form 2011

As part of our continual effort to monitor and stay ahead of the ever-changing marine industry, WQIS extensively reviews its existing policy form, studies current market coverage and thoroughly examines recent case law. As a result of our most recent findings, we are very pleased to announce the new WQIS Worldwide Vessel Pollution Policy Form 2011 for new and renewal business on or after June 1, 2011.
The old WQIS Policy Form 2007 will be optional until September 1, 2011 at which time we will switch over to the 2011 Form. The old form, subject to certain amended conditions, may be negotiated with your underwriter after the August 31st date.
The purpose of the update, which has been in progress for nearly two years, is to enhance coverage where gaps existed, improve organization, provide simplification, enhance competitive position and adjust to recent legal decisions.
“This new policy form represents the current state of the marine industry but more importantly, it really sets up our assureds for the future,” says Richard Hobbie, President of WQIS. “At WQIS we’ve always prided ourselves on being in touch not only with what’s going on today, but also what’s coming up. And this new form accomplishes that in a very effective way.”

Click
here to contact our underwriting department directly with any questions or concerns.
In this new policy form there are numerous changes. Details of the most significant modifications are listed below.
Overall
1. All reference to the subsections of the 5 PARTS of the policy are now referred to as “Sections”.
2. All Sections now have titles which are for descriptive purposes only. PART IV Section J specifies “The headings, captions and labels in this Policy are there for the purpose of organization and are not to be used in interpreting the terms, conditions, limit of liability, warranties, exclusions, endorsements and definitions of this Policy.”.
3. The Policy is now worldwide, there is no trading warranty. We will be requiring the Assured declare to us their trading limits but the policy will stand as a worldwide coverage. Please note that this new policy will continue to be subject to the Terrorism Insurance Coverage and U.S. Economic and Trade Sanction Clauses.

PART I- INSURING PROVISIONS
Section A- Discharges, Releases or the Substantial Threat of a Discharge or Release
The old coverage A,B, E, F, H, J and L, covering liabilities for various types of spills, are now combined into a new comprehensive Section A addressing all covered occurrences.
Section B- Investigation and Defense
1. The old Coverage C provided investigation and defense for Oil and Hazardous Substances occurrences. The new Section B provides investigation and defense for all Sections except Section C (U.S. Fines and Penalties) and Section H (Criminal) where defense is provided separately.
2. WQIS will now have the right but not the obligation to name Counsel.
Section C- U.S. Fines and Penalties
1. Administrative fines and the penalties that were covered under the old “Defense Fines and Penalties Endorsement “are now combined into this Section.
2. The Vessel General Permit (VGP) Policy that was provided separately is now incorporated into this Section and is a standard coverage.
Section D- Additional Public Relations
Public Relations had 40% coinsurance and that has been reduced to 20%. (i.e. we increased cover to 80% rather than the old 60%)
Section E- Automatic Acquisition Clause
No Change
Section F- Mitigation
Mitigation of all policy coverage now falls under this Section.
Section G- Property Damage Ashore
This is a new Section that provides coverage for discharges into the air which causes property damage ashore. This coverage was excluded under the AIMU Pollution Exclusion and Buy back clause (both existing and proposed) and this coverage is being affirmatively expressed in the policy. Please note that property does not include cargo!
Section H- U.S. Criminal Defense
The existing “Limited Fines and Penalties” endorsement is now being included in the new Section C . The old coverage was badly understood. This new Section H has been added to make it absolutely clear what and how much criminal defense is being offered. This new Section has a sub-limit and an annual aggregate. Also criminal defense requires our prior written consent unless it is limited to $5,000.

PART II- LIMIT OF LIABILITY
We are maintaining the each vessel, each occurrence limits that we have been offering, however the investigation and defense costs are included within the limit.
This allows coverage that previously had a sub-limit to have an increased limit, subject always to the occurrence limit. There are sub-limits only for Fines and Penalties and for Criminal Defense. This allows clean and clear delineation of underlying limits for purposes of scheduling underlying

PART III- POLICY EXCLUSIONS
There are numerous small changes to individual exclusions to better reflect intent and meaning. There are no new exclusions except the exclusions for the Vessel General Permit coverage, however they are the same exclusions that were contained in the VGP Policy.

PART IV- GENERAL TERMS, CONDITIONS AND LIMITATIONS
1. Section J- Headings, Captions and Labels: This section was added to simply confirm that headings, captions and labels are not to be used when interpreting the meaning and coverage. They are intended to make the policy more readable and provide a better structure for its organization.
2. No other significant change.

PART V—DEFINITIONS
1. Discharge and Responsible Party added as new definitions.
2. Vessel General Permit added as a new definition.
The Declarations Page has been simplified as has the Vessel Schedule based on the new premium and limit structure. The Immediate Report Warranty is added to the bottom of the Declarations Page.

About WQIS

WQIS is the largest U.S.-based underwriter of pollution liability insurance for marine vessels. With over 40 years in the industry, no one has more marine pollution insurance and spill response expertise, or offers more innovative coverage to the marine community. WQIS is dedicated to providing the broadest coverage and creating the most responsive organization to serve the needs of their clients.

Historic Winter Fuel Delivery to Nome

A 10-minute film has been made about the historic winter fuel delivery to Nome, Alaska, which required the cooperation of the American icebreaker Healy and the Russian tanker Renda. WQIS is proud to say that we insure this vessel, and we insured it for this voyage.

Watch the video on youtube.com.

WQIS Participates in the 11th International EOW Conference

Tri-State Bird Rescue & Research, Inc, a non-profit organization with the goal of rehabilitating injured, orphaned, and oiled native wild birds, presented the first Effects of Oil on Wildlife (EOW) Conference in 1982. Thirty years later, the conference is even more relevant and necessary than it was at its inception. This year’s theme, “Global Impacts: Many Species, One Response” will be especially important, following several major spills around the world.

WQIS is acting as both a participant and a sponsor in this year’s conference, which will be held January 24–28 in New Orleans, Louisiana.  For more information or to register for the event, please visit: www.eow2012.org.

WQIS PLEASED TO ANNOUNCE NEW BOARD CHAIRMAN

James Nawojchik Brings Established Marine Industry Leadership

January 3, 2012 (New York, NY)—On Dec 1, 2011, James Nawojchik became the 18th Chairman of the Board for the Water Quality Insurance Syndicate (WQIS), succeeding Robert Gallagher in that top post.

James began his career at Great American Insurance Company in New York in 1987, joining a three-year Underwriting Management training program that concluded with his appointment to Ocean Marine Underwriter.  In 1991, he accepted a position at Switzerland Marine Managers, division of Swiss Re, as Senior Marine Underwriter in New York, responsible for the cargo and hull underwriting of this MGA. James was then recruited by and joined the Home Insurance Company as Senior Marine Underwriter in 1992, where he was later appointed Assistant Branch Manager. In June of 1995, Zurich-American acquired the marine portfolio of the Home Insurance Company and James was named Branch Manager.

In 1999 James was named Eastern Regional Manager and Assistant Vice-President, responsible for managing the Atlanta and New York Ocean Marine books and the Chicago branch of Inland Marine consisting of Fine Art and Jewelers Block.  In January of 2001, he assumed the role of Vice President, Chief Operations Officer and in 2005, Nawojchik was named Senior Vice President and appointed to lead the marine practice nationally. Today, he leads marine branch underwriting operations in eight cities across the U.S. and Canada for all lines of marine.

Mr. Nawojchik earned a Bachelor of Science in Marine Transportation and Business Management from SUNY Maritime College, Fort Schuyler, New York. He has also completed post-graduate management programs with The College of Insurance, the Insurance Institute of America, Inc, and most recently, Northwestern University.

The team at WQIS welcomes this distinguished and capable leader in his new role and looks forward to much continued success under his tenure as Chairman.

WQIS A Mandate to Cover Shipowners

Perhaps no other maritime organization has its finger closer to the pulse of marine environmental protection than the Water Quality Insurance Syndicate (WQIS), the syndicate formed by 15 major insurance companies to specialize in marine pollution insurance coverage for ships. Greg Trauthwein, Editor of Maritime Reporter and Engineering News, visited Richard Hobbie III, President & CEO, WQIS, at his Manhattan office for his unique insights.

To understand the present it is helpful to know the past, and Richard Hobbie is a treasure-trove of maritime history in regards to water quality and pollution matters. According to Hobbie, the history of WQIS far transcends its founding in 1971, and in fact dates back to the mid 1940s, the end of World War II and the return of soldiers to the United States. Read more

This article was originally published in Maritime Reporter and Engineering News, July 2011, page 32. Click here to download a PDF version of the article.

New Policy Form Taking Effect – 9/1/11

The WQIS Policy Form 2007 will be switched over to the WQIS Worldwide Vessel Pollution Policy Form 2011 on September 1, 2011. The new form was released on June 1, 2011 and will be applicable to new and renewal businesses on or after that date.

Since 1971, WQIS has continually evolved and adapted its policy form to make certain that assured’s needs and interests are protected in this ever-changing marine environment. One thing that hasn’t changed is WQIS’ unwavering focus on providing effective products to ensure the broadest coverage possible for its clients.

The new 2011 form was developed to better reflect the current state of the industry – enhancing coverage where gaps existed, improving organization, providing simplification and adjusting to recent legal decisions. Read more about the specific changes in the new policy.

Clients who wish to continue on with the 2007 Policy Form, subject to certain amended conditions, may do so by negotiating with your underwriter before August 31, 2011.

CLICK HERE TO DOWNLOAD THE NEW FORM

WQIS Celebrates 40 Years in Style

Forty years is a considerable amount of time anyway you cut it. But for the marine pollution liability industry, it’s an entire lifetime. WQIS, which essentially founded the industry in 1971, is celebrating its 40th Anniversary in 2011 with signature moments taking place throughout the year.

The anchor event was a cocktail party at The Public House in New York’s midtown. Attended by close to 300 industry professionals, it was a veritable who’s-who of the marine industry. “We wanted an event that was simple and elegant, but that really said ‘thank you’ to all of those in attendance as they’re the ones who have helped us reach this milestone,” said Richard Hobbie, President of WQIS.

WQIS 40th Celebration

“This is a big deal for us,” said Russ Brown, Executive Vice President of WQIS. “As a company we’ve been part of the industry since day-one and to this day our leadership role is something we take very seriously. This forty year history is something we take great pride in.”

Another key event of this anniversary year for WQIS has been the release of their policy form 2011. The purpose of this update, which has been in progress for nearly two years, is to enhance coverage where gaps existed, improve organization, provide simplification, enhance competitive position and adjust to recent legal decisions. The WQIS Worldwide Vessel Pollution Policy Form 2011 was first issued on June 1, 2011.

WQIS 40th Celebration
Photos: Taken at the WQIS 40th anniversary party at The Public House in New York, NY.

Introducing the new WQIS Worldwide Vessel Pollution Policy Form 2011

As part of our continual effort to monitor and stay ahead of the ever-changing marine industry, WQIS extensively reviews its existing policy form, studies current market coverage and thoroughly examines recent case law. As a result of our most recent findings, we are very pleased to announce the new WQIS Worldwide Vessel Pollution Policy Form 2011 for new and renewal business on or after June 1, 2011.

The old WQIS Policy Form 2007 will be optional until September 1, 2011 at which time we will switch over to the 2011 Form. The old form, subject to certain amended conditions, may be negotiated with your underwriter after the August 31st date.

The purpose of the update, which has been in progress for nearly two years, is to enhance coverage where gaps existed, improve organization, provide simplification, enhance competitive position and adjust to recent legal decisions.

“This new policy form represents the current state of the marine industry but more importantly, it really sets up our assureds for the future,” says Richard Hobbie, President of WQIS. “At WQIS we’ve always prided ourselves on being in touch not only with what’s going on today, but also what’s coming up. And this new form accomplishes that in a very effective way.”

Click here to contact our underwriting department directly with any questions or concerns.

In this new policy form there are numerous changes. Details of the most significant modifications are listed below.

Overall
1. All reference to the subsections of the 5 PARTS of the policy are now referred to as “Sections”.
2. All Sections now have titles which are for descriptive purposes only. PART IV Section J specifies “The headings, captions and labels in this Policy are there for the purpose of organization and are not to be used in interpreting the terms, conditions, limit of liability, warranties, exclusions, endorsements and definitions of this Policy.”.
3. The Policy is now worldwide, there is no trading warranty. We will be requiring the Assured declare to us their trading limits but the policy will stand as a worldwide coverage. Please note that this new policy will continue to be subject to the Terrorism Insurance Coverage and U.S. Economic and Trade Sanction Clauses.

PART I- INSURING PROVISIONS
Section A- Discharges, Releases or the Substantial Threat of a Discharge or Release
The old coverage A,B, E, F, H, J and L, covering liabilities for various types of spills, are now combined into a new comprehensive Section A addressing all covered occurrences.
Section B- Investigation and Defense
1. The old Coverage C provided investigation and defense for Oil and Hazardous Substances occurrences. The new Section B provides investigation and defense for all Sections except Section C (U.S. Fines and Penalties) and Section H (Criminal) where defense is provided separately.
2. WQIS will now have the right but not the obligation to name Counsel.
Section C- U.S. Fines and Penalties
1. Administrative fines and the penalties that were covered under the old “Defense Fines and Penalties Endorsement “are now combined into this Section.
2. The Vessel General Permit (VGP) Policy that was provided separately is now incorporated into this Section and is a standard coverage.
Section D- Additional Public Relations
Public Relations had 40% coinsurance and that has been reduced to 20%. (i.e. we increased cover to 80% rather than the old 60%)
Section E- Automatic Acquisition Clause
No Change
Section F- Mitigation
Mitigation of all policy coverage now falls under this Section.
Section G- Property Damage Ashore
This is a new Section that provides coverage for discharges into the air which causes property damage ashore. This coverage was excluded under the AIMU Pollution Exclusion and Buy back clause (both existing and proposed) and this coverage is being affirmatively expressed in the policy. Please note that property does not include cargo!
Section H- U.S. Criminal Defense
The existing “Limited Fines and Penalties” endorsement is now being included in the new Section C . The old coverage was badly understood. This new Section H has been added to make it absolutely clear what and how much criminal defense is being offered. This new Section has a sub-limit and an annual aggregate. Also criminal defense requires our prior written consent unless it is limited to $5,000.

PART II- LIMIT OF LIABILITY
We are maintaining the each vessel, each occurrence limits that we have been offering, however the investigation and defense costs are included within the limit.
This allows coverage that previously had a sub-limit to have an increased limit, subject always to the occurrence limit. There are sub-limits only for Fines and Penalties and for Criminal Defense. This allows clean and clear delineation of underlying limits for purposes of scheduling underlying

PART III- POLICY EXCLUSIONS
There are numerous small changes to individual exclusions to better reflect intent and meaning. There are no new exclusions except the exclusions for the Vessel General Permit coverage, however they are the same exclusions that were contained in the VGP Policy.

PART IV- GENERAL TERMS, CONDITIONS AND LIMITATIONS
1. Section J- Headings, Captions and Labels: This section was added to simply confirm that headings, captions and labels are not to be used when interpreting the meaning and coverage. They are intended to make the policy more readable and provide a better structure for its organization.
2. No other significant change.

PART V—DEFINITIONS
1. Discharge and Responsible Party added as new definitions.
2. Vessel General Permit added as a new definition.
The Declarations Page has been simplified as has the Vessel Schedule based on the new premium and limit structure. The Immediate Report Warranty is added to the bottom of the Declarations Page.

About WQIS

WQIS is the largest U.S.-based underwriter of pollution liability insurance for marine vessels. With over 40 years in the industry, no one has more marine pollution insurance and spill response expertise, or offers more innovative coverage to the marine community. WQIS is dedicated to providing the broadest coverage and creating the most responsive organization to serve the needs of their clients.

VESSEL GENERAL PERMIT REQUIREMENTS TO SEE NEW PROACTIVE LEVEL OF ENFORCEMENT

Nearly two years after the passing of the Vessel General Permit (VGP) requirements the Coast Guard and EPA have come to an agreement on how to enforce it. The two organizations have joined forces under the Memorandum of Understanding, or MOU, to enforce this new law. Under the MOU, the Coast Guard and the EPA agree to cooperate with requests by the other agency for available information, documents, or testimonies useful in carrying out responsibilities under the VGP.

The VGP applies to more than 61,000 commercial vessels in the United States and to more than 8,000 foreign vessels operating in the navigable waters of the United States. Upon implementation in February 2009, the VGP established operation, reporting, and record keeping requirements for 26 types of discharges incidental to the normal operation of these vessels, such as deck run-off, ballast water, and gray water. The VGP also established inspection and monitoring requirements and requires corrective actions be taken to address compliance deficiencies.

The MOU is a signal that federal enforcement of the VGP program will be much more active and aggressive than in the past.

In 2009 WQIS reviewed the matter and concluded that insurance coverage can play a significant role in protecting vessel operators from portions of this new liability.

The WQIS Vessel General Permit Policy 2009 provides:

  • Indemnity for certain civil, administrative and criminal penalties that may be assessed for violation of the Vessel General Permit for insured vessels;
  • Reimbursement for certain corrective action required under thepermit; and
  • Investigation and defense of insured liabilities.

In general the policy excludes:

  • Corrective actions covered by any other insurance policy.
  • Corrective actions arising from wear, tear and gradual deterioration.
  • Knowing violations and false statements.
  • Failure to file a Notice of Intent.
  • Aquatic Invasive Species.
  • Failure to establish self-monitoring, inspection, record keeping or reporting systems.
  • Failure to comply with education and training requirements for maintenance, monitoring and reporting.

About WQIS

WQIS is the largest U.S.-based underwriter of pollution liability insurance for marine vessels. With 40 years in the industry, no one has more marine pollution insurance and spill response expertise, or offers more innovative coverage to the marine community. WQIS is dedicated to providing the broadest coverage and creating the most responsive organization to serve the needs of their clients.

For details concerning the Vessel General Permit requirements visit the EPA website at http://cfpub.epa.gov/npdes/vessels/vgpermit.cfm.

For the full article visit http://www.mondaq.com/unitedstates/article.asp?articleid=125286

IMO Bunker Convention Status

WQIS maintains this IMO Bunker Convention Status for your convenience. Check back for updates as additional States become party to the Convention.

All data is documented from the IMO website, http://www.imo.org.