Cover for Property on Board – Clause 15 of the Aurora Policy


As part of a series of articles regarding the cover we offer under the Aurora P&I policy we are looking at areas of the Aurora P&I Policy. In this article we look at Section B, Clause 15. 

We can provide cover for property on board the insured ship and the purpose of this article is to clarify the scope of the cover and provide some general guidance to insureds and brokers. We set out below the relevant clause of the Aurora P&I policy.


What’s covered?

The purpose of this clause is to provide cover for loss or damage to property carried on board an insured ship. Examples of what might be covered would be containers belonging to a third party, fuel carried on behalf of others or equipment, either carried between ports for commercial purposes, or third-party equipment used to assist with cargo operations e.g. grabs or spreaders.

Clients who have, or think they may need, cover under this section are reminded that they should speak with the Aurora P&I Underwriting team to ensure they are fully covered.


What’s Covered Elsewhere?

Under the clause we specifically exclude liabilities to cargo and to personal effects of the crew, passengers or others. This is because there is cover available in other sections of the Aurora P&I policy for these risks.


What’s Excluded?

Property owned, controlled or leased by the Insured is not covered.

We provide a third-party liability policy and equipment such as cargo equipment owned by the Insured should more correctly be covered under the Hull and Machinery policy.



Often equipment used in specialist operations offshore might be of high value or a specific indemnity or agreement may be in place regarding  the equipment  on board the ship and, in which case, specific terms  will need to be agreed by the Underwriting team in advance.

Insureds and brokers should contact the Aurora P&I Claims or Underwriting teams in London if they have any questions or need any clarification regarding this article.


Clause 15 reads as follows:

15   Loss of or Damage to Property on board the Insured Ship

Risks Covered

Liabilities of the Insured to pay for loss of or damage to any containers, equipment, fuel or other property on board the Insured Ship.


15.1   There will be no recovery under this Clause 15:

15.1.1   where such property is within the scope of the following Clauses:   Clause 6.7, Clause 8.5 or Clause 9.4 relating to liabilities for loss or damage to the personal effects of Members of the Crew, Passengers and Third Persons;   Clause 22 (Cargo Liabilities);

15.1.2   in respect of liabilities within the scope of any proviso, limit, condition, exclusion or deductible applicable to any of the Clauses listed in Clause 15.1.1 above;

15.1.3   where such property forms part of the Insured Ship and is owned or leased by the Insured, or by any company associated with or under the same management as the Insured;

15.1.4   in respect of any liabilities arising under the terms of any contract or indemnity entered into by the Insured that would not have arisen but for such contract or indemnity unless:   the Insured has obtained appropriate special Insurance by written agreement with the Insurer, and the Insured has paid or agreed to pay such additional Premium as required by the Insurer.