Canadian risks treated as marine
“Marine” insurance has a very narrow definition under Canadian legislation and is limited to:
“.....insurance against liability arising out of;
(a) bodily injury to, or the death of, a person, or the loss of, or damage to, property, or
(b) the loss of, or damage to, property,
occurring during a voyage or marine adventure at sea or on an inland waterway, or during a delay or a transit other than by water that is incidental to a voyage or marine adventure at sea or on an inland waterway......."
"marine adventure" means any situation where “….insurable property is exposed to maritime perils,...”
"maritime perils" means “.....perils consequent on or incidental to navigation….”
Canadian risks treated as non-marine
The following risks should be treated as non-marine (please note this list is not exhaustive).
- risks relating to vessels or waterborne objects such as rigs or platforms not navigating but still exposed to the perils of the sea ;
- construction risks;
- ship repairer's liability;
- general liability insurance on shipyards, physical plant and all other risks relating to shipyards (with the exception of hull construction risks); marina operators' liability; workers' compensation; wharfingers/stevedores' liability;
- wharves; docks; wells; pipe-lines; fish farms and their equipment (pens and barges);
- cargo stored awaiting shipment;
- logs on shore (ie felled or stockpiled) (note; log booms in storage alongside the plant or being towed in transit are classified as a marine risk);
- contract frustration.
Please note that if the risk relates to property situated outside of Canada then the risk will not be subject to provincial tax regimes.
Treatment of non-marine risks in marine 'package'
Where the above risks are included in marine 'package' insurance, particular attention should be paid to their secregation to ensure they are treated as non-marine.