Ship and Boat Charters
Chartering boats and ships for either inland waterway or ocean travel are often excluded under typical General Liability insurance policies. Since Penn State, like most other businesses or universities, has restrictions under its Liability Insurance, the following steps must be followed when chartering such vessels (excluding small watercraft such as canoes, rowboats, or the equivalent):
- All written Agreements (Contracts) fall under Policy FN11 Contracts and Leases. The Agreement for any boat/ship charter must be submitted to Central Procurement as follows:
- For Purchase Order payments, the Agreement should be submitted in the Shop OnLion Shopping Cart.
- Otherwise, submit the Procurement Contract Request Intake Form with the contract attached.
- Advise the prospective charterer that a Certificate of Insurance evidencing the charter’s Marine Liability Insurance (Protection & Indemnity – P&I coverage), showing The Pennsylvania State University as an Additional Insured with a waiver of subrogation included, must be submitted along with any Agreement (Contract). The marine liability/P&I coverage should include Collision Liability unless provided under the vessel’s Hull & Machinery policy.
Note the following guidelines for marine liability/P&I limit requirements of the vessel owner:
|Less than 30 ft||$1,000,000||$2,000,000|
|Over 30 ft||$2,000,000||$3,000,000|
The address of the Certificate Holder and Additional Insured is:
The Pennsylvania State University
c/o Office of Central Procurement
102 Procurement Services Building
University Park, PA 16802
- Central Procurement will verify the coverage meets university guidelines. If the coverage is unacceptable, Central Procurement consults with Risk Management on the next steps and communicates with the unit.
- Charters in which a crew is not included (a bareboat or demise charter) are generally not allowable.
Please note these requirements only pertain to the chartering of a vessel in the name of the university. They do not apply when individuals buy tickets to a regularly scheduled cruise open to the public.