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The Association has a right of recourse against the Member for any amount which the Association has paid on behalf of the Member and for which the Member is not entitled to compensation under these Rules. Most land based insurers write general liability insur- ance on ISO Commercial General Liability (CGL) Form CG 00 01. A typical CGL policy grants insurer's the legal right to subrogation and requires the insured to cooperate with the insurer in its efforts to subrogate. A CGL policy may allow an insured to waive recovery against a third party prior to loss. There is a specific form for waiver of subrogation endorsement named "Waiver of Transfer of Rights of Recovery Against Others to Us". Closely related to ISO CG2404 is the Waiver of Transfer of Rights of Recovery Against Others to Us (CG 29 88) Endorsement, which is attached to an Owners and Contractors Protective (OCP) Liability Policy which allows a waiver of subrogation. WHAT 'STHEBOTTOM LINE?Shipyards, repairers and their insurers surely want to limit their risks to what they typically control. Shipyards do not want to be sued for or be indemnifying or hold-ing harmless owners for owner's crew injuries or con- tractor's injuries or hull and machinery losses. They want to allocate that risk to the vessel owners and their insurers via contract, which is allowed. Likewise, vessel owners and insurers do not want to underwrite every risk of everyone in the shipyard and want to get paid for a loss incurred as a result of the negligence of a yard or their agents.INFORMEDCONSENTRECONCILIATION The shipyard or repairer's contract can peacefully coex- ist with the marine hull and P&I insurance contracts ifthe insurers are well informed and consent to the lan- guage in the repair contract. This will typically require purchase of additional endorsements as previously noted. The vessel insurer will try to limit the scope of the waiver and may require review of the shipyard or repair- er's insurance agreements. Insurers typically will not endorse unlimited open ended risks.Prior to entering into any contract, the shipyard?s and vessel owner's insurance broker and insurer should get involved to obtain the informed consent for properly allocating and covering the anticipated risks though con- LEGALSmith Berger Marine, Inc.builds a full range of Shark Jaws for AnchorHandling Tug Supply vessels. Standard ratings are 100, 200, 350, 500 and 750 metric tons and all units have Quick Release at the rated load.Smith Berger flexibility allows us to customize our equipment to suit theoperating characteristics of your vessel. Third party certification, loadtests, release tests and load monitoring systems are available options. Rely on the 100 year history of Smith Berger to outfit your vessel with our rugged and dependable equipment.SMITHBERGERMARINE, INC.OFFERSA COMPLETELINEOF SHARK JAWS ? TOWING PINS ? STERN ROLLERS Smith Berger Marine, Inc.7915 10th Ave., S., Seattle, WA 98108 USA Tel. 206.764.4650 ? Toll Free 888.726.1688 ? Fax 206.764.4653 E-mail: sales@smithberger.com ? Web: www.smithberger.com SAFE - RELIABLE - ECONOMICALMN#1 (18-31):MN 2011 Layouts 1/6/2012 11:07 AM Page 22
