Products
GAIC will quote terms for stock mortality either as a result of nominated perils
or on an “all risks” basis according to the nature of the risk and preferred premium
spend of the insured.
Limits of up to GBP 5,000,000 per location are normally available (depending on
technical quality of operations to be insured) and deductibles are within the range
of 10 to 20 per cent of the insured value at risk at the time of loss.
Indemnity is in accordance with an “agreed value” established in the policy and
based on the production cost of fish or shellfish of less than market size and then
market value of larger stock. This may be reviewed during currency of the insurance.
For all but the smallest operations, a deposit premium will be paid “up front” and
the premium ultimately payable calculated at the expiry of the policy according
to the actual stock values exposed.
For larger clients it is possible for the premium to be payable in instalments.
Stock Mortality Policy Coverage
Aquaculture risks cannot be considered in the same manner as high volume, homologous
classes of business such as motor. Each fish or shellfish farm is unique and has
its own risk profile.
Add to this the fact that each owner will have his or her own risk appetite, financial
strength and array of investors and it becomes apparent that the risk management
and transfer strategy of each farm is different. Every risk must be individually
assessed and a policy developed to incorporate the appropriate scope and cost of
cover.
Existing policy wordings in both a “specified perils” and “all risks” format exist
for most species being raised in most systems. However, these may not be appropriate
in all cases and the GAIC team will be happy to work with clients to develop coverage
to suit the needs of particular clients.
Mortality cover indemnifies the insured against mortality or physical loss of stock
and normally includes cover for total loss of market value of stock as a result
of pollution.
Policies are written on an “agreed values” basis where the value of different sizes
of stock is agreed and included in the insurance schedule in advance of any claim.
Insurers do, however, have the right to pay the cost of physically replacing lost
stock rather than using the policy scale in the event that the market value of stock
changes during the period of the policy.
Stock of less than market size is insured for a value based on its production cost
and for anticipated market value once it attains a marketable size.
True “consequential loss” or “loss of profits” cover as is available for manufacturing
industries is not commonly offered for aquaculture operations.
As the values exposed on fish and shellfish farms vary with respect to time, insurance
policies are normally arranged on an adjustable basis with a deposit premium being
paid at the start of the policy and a final earned premium being calculated at the
end of the year, based on the actual exposure as declared in monthly declarations
of the values actually at risk.
GAIC will quote terms for physical loss or damage insurance for service vessels,
feed barges and well boats and for holding cages and associated equipment.
Limits of up to USD 2,000,000 per vessel and USD 2,000,000 per location for cages
and equipment are available.
Associated P and I cover (excluding crew liability) may be included.
This product is offered in conjunction with one of the most experienced Lloyd’s
underwriting teams.
Cover may be offered against Accidental Product contamination during processing,
Malicious Product tampering during processing and Product extortion demand.
Costs of recall including pre-recall costs, increased cost of working, product rehabilitation
costs, incident response costs and loss of income may be covered.