Posted on 23 Feb 12
Rapid market developments in the growing maritime security industry have led to increasingly divergent requirements that companies in the sector have of their insurance.
To meet the needs of all market participants, Marsh, a global leader in insurance broking and risk management, last week launched a new insurance facility that provides comprehensive insurance coverage for the Private Maritime Security Company (PMSC) industry.
Developed to support the requirements of the Security Association for the Maritime Industry (SAMI), Marsh’s new insurance facility meets the insurance recommendations stipulated by the International Maritime Organization (IMO) and is available exclusively to SAMI members. Marsh has created the facility with additional guidance from leading PMSCs, P&I Clubs, and insurance underwriters.
Marsh’s core package provides coverage across five fundamental areas of insurance: public liability; professional indemnity; maritime employers’ liability; employers’ liability, and personal accident. Additional insurance cover such as kidnap and ransom, hull and machinery, and enhanced limits of liability are available, depending on the risk appetite of individual organizations.
Nick Roscoe, a Managing Director in Marsh's Global Marine Practice, said: “The insurance industry has failed to keep pace with the rapid development of the maritime security sector. Many policies have been ‘borrowed’ from other industries and knitted together to provide cover with little thought of PMSCs’ specific needs in mind.
“Marsh’s new facility addresses the common insurance requirements of all PMSCs with its core product, while lending itself to the personal growth ambitions of individual organizations with its additional services. By accessing Marsh’s facility, PMSCs can secure insurance provision that reassures their clients and supports the wider development of the industry as a competitive force in global maritime security.”
Peter Cook, Director and founder of SAMI, commented: “The private maritime security industry will play an increasingly important role in ensuring safety on the seas, filling the gap left by the anticipated reduction of many national naval fleets. Therefore, the establishment and adoption of the highest professional standards across the industry is paramount.
“Marsh has consulted with SAMI in the creation of this innovative new facility, which is capable of providing effective insurance protection to our members and giving ship owners the assurances they need.”