POLICIES.
ANY INSURANCE POLICY REQUIRED PURSUANT TO THIS SECTION 13.1
SHALL CONTAIN A STANDARD WAIVER OF SUBROGATION ENDORSEMENT.
UPON REQUEST OF
CUSTOMER, SABINE SHALL PROVIDE TO CUSTOMER SATISFACTORY EVIDENCE THAT THE
INSURANCE REQUIRED PURSUANT TO THIS SECTION 13.1 IS IN EFFECT.
IN ANY EVENT
SABINE SHALL BE REQUIRED TO OBTAIN THE FOLLOWING INSURANCE COVERAGES:
(A)
COMMERCIAL GENERAL LIABILITY INSURANCE /
MARINE TERMINAL OPERATOR'S LIABILITY INSURANCE;
(B)
WORKERS' COMPENSATION / EMPLOYER'S
LIABILITY;
(C)
ALL-RISK PROPERTY INSURANCE;
(D)
WHARFINGERS LIABILITY INSURANCE;
(E)
POLLUTION LIABILITY INSURANCE; AND
(F)
BUSINESS INTERRUPTION INSURANCE PURSUANT
TO SECTION 4.1(B) IN AN AMOUNT SUFFICIENT TO REPLACE THE FEE IN THE EVENT OF AN
INTERRUPTION OF SERVICE DUE TO ANY OF THE CAUSES CUSTOMARILY ADDRESSED BY
BUSINESS INTERRUPTION INSURANCE.
PRIOR TO THE PLACEMENT OF ANY BUSINESS
INTERRUPTION INSURANCE, SABINE SHALL PRESENT ITS PROPOSED BUSINESS INTERRUPTION
INSURANCE POLICY TO CUSTOMER FOR REVIEW AND APPROVAL.
In addition, during construction of the Sabine Pass Facility, SABINE shall cause
the contractor under the engineering, procurement and construction contract to
carry an appropriate level of insurance, including Construction All-Risk
Insurance.
13.2
CUSTOMER'S INSURANCE
(A)
LOSS OF PRODUCT INSURANCE.
CUSTOMER
ACKNOWLEDGES THAT SABINE SHALL NOT AT ANY TIME BE RESPONSIBLE FOR SECURING AND
MAINTAINING LOSS OF PRODUCT INSURANCE COVERING THE RISK OF LOSS OF CUSTOMER'S
INVENTORY AND THAT CUSTOMER SHALL BE RESPONSIBLE FOR INSURING AGAINST SUCH
RISK.
IF CUSTOMER ELECTS TO OBTAIN LOSS OF PRODUCT INSURANCE THAT INSURES THE
PHYSICAL DAMAGE OR LOSS OF CUSTOMER'S INVENTORY, SABINE SHALL, UPON REQUEST OF
CUSTOMER, PROVIDE CUSTOMER ALL DOCUMENTS AND INFORMATION REASONABLY NECESSARY TO
ENABLE CUSTOMER TO OBTAIN SUCH LOSS OF PRODUCT INSURANCE.
46
(B)
LNG VESSEL INSURANCE.
CUSTOMER SHALL ENSURE
THAT INSURANCES ARE PROCURED AND MAINTAINED FOR EACH LNG VESSEL IN ACCORDANCE
WITH THE FOLLOWING PROVISIONS.
IN ALL CASES, SUCH INSURANCE SHALL ESTABLISH
INSURANCE COVERAGES CONSISTENT WITH INSURANCES TO THE STANDARDS WHICH A SHIP
OWNER OPERATING REPUTABLE LNG VESSELS, AS A REASONABLE AND PRUDENT OPERATOR,
SHOULD OBSERVE IN INSURING LNG VESSELS OF SIMILAR TYPE, SIZE, AGE AND TRADE AS
SUCH LNG VESSEL.
IN THIS REGARD:
(I)
HULL AND MACHINERY INSURANCE SHALL BE
PLACED AND MAINTAINED WITH REPUTABLE MARINE UNDERWRITERS; AND
(II)
PROTECTION & INDEMNITY INSURANCE ("P&I
INSURANCE") SHALL BE PLACED AND MAINTAINED AS AN UNLIMITED ENTRY, IF SUCH ENTRY
IS AVAILABLE, WITH AND SUBJECT TO AND ON THE BASIS OF THE RULES OF ANY OF THE
REPUTABLE P&I INSURANCE ASSOCIATIONS EXPERIENCED IN PROVIDING P&I INSURANCE FOR
LNG VESSELS.
(C)
EVIDENCE OF INSURANCE.
PRIOR TO THE
COMMENCEMENT OF DELIVERIES TO THE SABINE PASS FACILITY AND THEREAFTER AT LEAST
ONCE EACH CONTRACT YEAR, CUSTOMER SHALL FURNISH THE FOLLOWING EVIDENCE OF
INSURANCE TO SABINE IN RELATION TO EACH LNG VESSEL: COVER NOTES, CERTIFICATES OF
ENTRY, THE LATEST RULES OF THE PARTICULAR PROVIDER, AND DETAILED WRITTEN
INFORMATION CONCERNING ALL REQUIRED INSURANCE POLICIES.
THESE POLICIES SHALL
PROVIDE SABINE WITH THIRTY (30) DAYS PRIOR WRITTEN NOTICE OF ANY CANCELLATION,
MATERIAL CHANGE OR ALTERATION IN COVERAGE.
THESE POLICIES SHALL ALSO CONTAIN
WAIVER OF SUBROGATION CLAUSE AND NAME SABINE AS ADDITIONAL INSURED.
THE RECEIPT