Specialist Operations Cover

The Problem

Specialist Operations are contracted works undertaken by the Member that fall outside the scope of what may be considered as traditional P&I risks common to the Club’s general membership. Rule 17C of the Club’s Class 1 Rules sets out a list of what are considered to be specialist operations:

“Dredging, blasting, pile-driving, well-stimulation, cable or pipelaying, construction, installation or maintenance work, core sampling, depositing of spoil and power generation.”

Liabilities arising out of the above operations fall outside of normal P&I cover. This exclusion is not of the vessel as such but of the specialist operations it is engaged in.

So for example, if a vessel engaged in construction works collides with another vessel or object but the collision was due to an error in navigation rather than as a result of the specialist operation it was engaged in, then the specialist operation exclusion would not apply and P&I cover would respond in the normal way. But conversely, if the  collision occurred as a result of the vessel being unable to manoeuvre or avoid the collision due to the specialist operation she was engaged in then the specialist operations  exclusion would apply.

However, this exclusion does not apply to claims in respect of loss of life or illness to the crew, wreck removal of the insured vessel or pollution claims, which remain covered under normal P&I Rules.

The types of vessels typically requiring such specialist operations cover include those engaged in maintenance and construction projects, pipe and cable laying, dredging, pile driving and dive-support, as well as crane barges.