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www.marinelink.com MN21procure the insurance, they can be deemed the de facto insurer and be liable directly for failure to provide insurance while simultaneously void- ing their own policy. Adding the ship- yard and holding it harmless also may limit the amount of insurance avail- able by all parties in the case of a cat- astrophic loss in excess of a vessel pol- icy. HIGHRISKFOR EVERYONE Shipyard time is a time of higher risk for vessels, crews, owners, ship- yard employees and technicians. Hot work, gas freeing, work in enclosed spaces, trip hazards, sand blasting and asbestos removal, welding and cut- ting, crane and heavy machinery work and the use of subcontractors are just a few of the risks involved. Marine insurers may utilize the American Institute of Marine Underwriters (AIMU) Hull and P&I Forms, which could include or exclude shipyard repairs. However, the typical P&I form may exclude coverage for liability assumed under a shipyard repair contract or Knock- for-Knock clause. The AIMU form states: "Notwithstanding anything to the contrary elsewhere herein the Underwriters will not indemnify the Assured in respect of any of the fol- lowing matters: (A) Any liability assumed under contract or other-wise." Similar language can be found in the ship repairer's policy. Most Commercial General Liability, Property, Workers Compensation, Hull Insurance and P&I Club Rules have a right of sub- rogation and/or no waiver of subroga- tion type language. When an insurer decides to pay a claim, they have a right to go after those at fault to getreimbursed. Most insurers and P&I Clubs have a provision in the insur- ance contract that a claim may beexcluded if the insured give away or limits the insurer's right to recover against third parties. A typical P&I Club rule may read: RIGHT OF RECOURSE: For any amount paid by the Association to the Member or to a claimant, the Member's right of recovery from third parties is transferred to the Association, which is entitled to collect any amount recovered. MN#1 (18-31):MN 2011 Layouts 1/5/2012 2:12 PM Page 21