Shipowners and operators enter into many commercial contracts each year, but sometimes these can expose them to liabilities that are beyond or prejudicial to their P&I cover. At the UK P&I Club, we understand that the effective management of risks is critical to ensure the smooth running of our Members’ business. 

The Contract Review team, headed by Director Karolina Mentz brings together the knowledge and experience of the UK Club’s claims management teams with the extensive industry expertise of the underwriting team. They offer a comprehensive P&I review of a Member’s existing and proposed contractual arrangements.

The aim of the Contract Review is to identify any contractual provisions or undertakings that may:  

• have unclear definitions of responsibility and liability
• expose a Member to uninsured risks 
• prejudice their existing P&I cover

The Contract Review team will then provide the Member with guidance on how their contracts can be amended to bring them into line with existing P&I cover. Working closely with the underwriting team, the Contract Review team will also suggest tailored insurance solutions to provide extended cover for any remaining contractual risks identified where possible. 

Members are also reminded that certain contractual arrangements require pre-approval by the Club as a condition of their P&I cover. These include:

• passenger tickets and other passenger contracts
• crew contracts or contracts of service or employment
• pollution risk agreements
• certain towage contracts (non-customary)
• indemnities or liabilities assumed under contract
• wreck removal contracts
• certain cargo contracts
• contracts giving rise to liability for property on the entered ship
• fines assumed under a contract or indemnity.

Please refer to the Club’s Rules and terms of entry for further details. 

Should you have any questions regarding the Contract Review service, please do not hesitate to contact either Anna Macdonald or your usual Club contact.