American Club tightens Russia-Ukraine exclusions as reinsurers cancel

Reinsurers called it quits on a slew of war risk exposures for policies to the  American Club, forcing the mutual marine insurer to kick the cancellation down the line to its own member-insureds.

New policy exclusions, effective with the turn of the year, cover the full swath of possible losses and liabilities stemming from Russia’s war with Ukraine, tied to territories tied to the conflict (Russia, Ukraine, Belarus, Moldova) or stemming from any related action vis-a-vis vessels.

Exclusions affect non-mutual business, including charterers liability, fixed premium P&I cover, and non-poolable extensions and ancillary covers to mutual entries. They do not apply to mutual entries for P&I and freight, demurrage and defence (FD&D) cover.

The club has given itself 72-hour cancellation rights for a broad swath of risks tied to any armed conflict or terrorism and set automatic cancellation for nuclear events or first-world armed conflict.

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