+2 votes
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Who pay for Employer's Insurance Liability (EIL) coverage for Workman Compensation Insurance?

asked Jul 2, 2014 in Commercial by esjensen (2,720 points)
Does Oil Operating Company or Vessel's Contractor who owns and operates the vessel pay for Employer's Insurance Liability (EIL) coverage for Workman Compensation Insurance?

2 Answers

+2 votes
answered Jul 2, 2014 by judyp (2,700 points)
Without limiting in any way the scope of any obligations and/or liabilities assumed herein by Operating Company, Operating Company shall procure and maintain at its expense for the duration of the Contract, the insurance policy below, as required by Contractor, and by the laws of the Governmental Authorities, with reliable and mutually agreed commercial insurance companies, and with policy limits and territory coverage sufficient to cover the Work, effective through primary and excess coverage, with limits not less than those indicated:

The Workman's Compensation and Employer's Liability Insurance coverage for

(i) Workman’s Compensation Insurance for U.S. Nationals with minimum amounts in compliance with the state of hire in the U.S.A.;

(ii) Workman’s Compensation Insurance for expatriates from countries other than the U.S.A. and the Governmental Authorities, with the minimum amounts in compliance with the laws and regulations from the country of origin from which hired;

(iii) equivalent worker’s compensation insurance for nationals of the Governmental Authorities, as may be required by statute or regulation in the Governmental Authorities;

(iv) Employer’s Liability Insurance with limits of not less than One Million U.S. Dollars (U.S. $1,000,000) per accident/occurrence;

(v) Coverage for any other benefits as may be set out and required from time to time by laws and regulations of the Governmental Authorities.
commented Jul 2, 2014 by sabdullayev (5,290 points)
So what do other types of EIL(s) that Operating Companies should pay for?
+1 vote
answered Jul 2, 2014 by alsieg (2,780 points)
  • Automobile Third Party and Passenger Liability Insurance covering all owned, hired and non-owned vehicles or automotive equipment used by Operating Company in connection with the performance of the Contract, in accordance with Applicable Laws of the Governmental Authorities in which work is carried out under the Contract. Coverage shall be the greater of statutory regulation or with limits of not less than One Million U.S. Dollars (U.S. $1,000,000) combined single limit per accident/occurrence for bodily injury and property damage.
  • Comprehensive General Liability Insurance with limits of not less than One Million U.S. Dollars (U.S. $1,000,000) combined single limit per accident/occurrence, including but not limited to coverage for public liability including bodily injury and property damage liability, personal/advertising injury, contractual liability for those liabilities assumed by Operating Company herein, cross liability and severability of interest, liability for pollution and cleanup on a sudden and accidental basis, products and completed operations, protective liability/independent contractors/work sublet, and with the “care, custody, and control exclusion” deleted.
  • All Risk (Property) Insurance covering Company’s machinery and equipment for its replacement value and including removal of wreck/debris coverage.
  • Watercraft Insurance. For all vessels owned, operated, chartered, brokered, supplied or borrowed by or for Company in connection with its Work under the Contract, Company shall carry or require the owner or operator of such vessels, as applicable, to carry (including the Umbrella Excess Liability Insurance):
  • Full Form Hull & Machinery Insurance for the full replacement cost value with coverage provided on the Institute Time Clauses Hulls Port Risks including Limited Navigation (October 1, 1983) or market standard equivalent, including but not limited to coverage for Collision Liability, with Sistership Clause unamended, and Tower’s Liability and Removal of Wreck on a voluntary basis or where required by law, regulation or contract. The phrase “as owner of vessel named herein” and all similar phrases purporting to limit the insurer’s liability to that of an owner shall be deleted. Coverage shall be extended to cover war risks, strikes, riots, and civil commotions under applicable London Market Institute forms or equivalent. Any Navigation limits shall be adequate for the operations in connection with the Work. 
  • Protection and Indemnity Insurance for vessels with limits of One Million US Dollars (US$1,000,000) combined single limit per occurrence; such insurance shall include but not limited to coverage for contractual liability for those liabilities assumed by Company herein, liability for wreck, pollution and cleanup on a sudden and accidental basis, full crew coverage, cross liability and severability of interest, Collision and Tower’s Liability, and Cargo Legal Liability. The insurer shall waive its right to limit its liability to the value of the vessel, but only with respect to Contractor Group. The phrase “as owner of vessel named herein” and all similar phrases purporting to limit the insurer’s liability to that of an owner shall be deleted.
  • Company’s Legal Liability Insurance with limits of One Million U.S. Dollars (U.S. $1,000,000) combined single limit per occurrence.
  • Aircraft Insurance. If applicable, for all aircraft owned, operated, chartered, or brokered by or for Company in connection with its Work under the Contract, Company shall carry or require the owner or operator of such aircraft to carry (including the Umbrella Excess Liability Insurance):
    • All Risks Hull Insurance for full replacement cost value, including but not limited to coverage for collision liability.
    • Aircraft Liability Insurance with limits of One Million U.S. Dollars (U.S. $1,000,000) combined single limit per occurrence, including but not limited to coverage for bodily injury, death and property damage, Passenger Liability, and contractual liability for those liabilities assumed by Company herein.
    • The policy listed above shall provide a breach of warranty in favor of Contractor Group.  
  • Umbrella Excess Liability Insurance with limits of One Hundred Million U.S. Dollars (U.S. $100,000,000) per accident/occurrence in excess of the primary liability coverage and limits above.
  • Control of Well Insurance and/or other insurance covering losses resulting from seepage, pollution, blowouts, wild well or other uncontrolled flow and pollution with coverage limits of no less than One Hundred Fifty Million United States Dollars (US$150,000,000).
  • To the extent of the indemnification obligations assumed by Company herein, all of the above insurance shall be endorsed to provide that:
    • Company’s insurers waive their right of subrogation (equitable or by assignment,    express or implied, loan receipt or otherwise) against all members of Contractor Group.
    • Company’s insurers name Contractor Group as additional insured (except for Worker’s Compensation and All Risk Property Insurance).
  • Certificates of Insurance. At the inception of this Contract, annually thereafter, and whenever requested, Company shall furnish insurance certificates to evidence the insurance required herein. Company’s insurance shall be carried with insurance companies reasonably satisfactory to Contractor, and shall contain endorsements stating that insurer will give thirty (30) calendar days’ written notice to Contractor of non-renewal, cancellation, substantial amendment or alteration of such coverage.
  • Premiums and Deductibles. All deductible amounts, premiums, franchise amounts or other charges due with respect to Company’s required insurance herein shall be the sole obligation of Company.
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