News 02 Nov, 2022 War Risks - Waypoints Issue 03 Nicola Cox Head of Defence Claims With the terrible situation in Ukraine a daily fixture on the news and the Joint War Committee including many of the region’s seas and waterways as Listed Areas, suddenly war risk cover is firmly back on the agenda write West’s Suumit Madhu and Nicola Cox. Download PDF Under English law there is no precise definition of what a ‘war’ is and nor does a conflict have to be declared by any international or governmental body in order to be viewed as ‘war’. So what are some of the potential war-related issues for owners and charterers to look out for? War risk cover for owners  and charterers There is generally no ordinary P&I cover for an owner in respect of any liabilities, costs or expenses caused by war, any hostile act by or against a belligerent power, or any act of terrorism.  Cover for those types of liabilities is customarily purchased by the owner through their H&M insurer or specialist war risk insurer, though the International Group Clubs provide an excess war cover with a limit of US$500 million above an owner’s war cover. This contrasts markedly with war risk cover for charterers, where the Club customarily provides ‘ground up’ war risk cover for P&I liabilities, i.e. without any underlying excess point. The limit on this cover per claim is USD100 million. Another difference is that Own ers are required to notify their war risk underwriters in advance if they intend to order vessels to sail through these Listed Areas and for which an additional premium is normally charged, whereas there is no such requirement under the Club’s Charterers’ Cover and no additional premiums payable. Liability for war risks between owners and charterers Since charterers are commonly required by the terms of their charterparty to pay or contribute towards the cost of war risks additional premium, it will often be implied that owners have agreed not to claim against charterers f