Section 3 Damage to fixed and floating objects
As described in the comments to Sections 1 and 2 of this Rule, liability cover under the Hull policy has important exclusions which require cover under the P&I policy, to provide the shipowner with full insurance protection.
7.3.2 Cover for FFO when excluded under Hull policy
This section provides the necessary cover for a Member’s ship insured on Hull conditions excluding cover for damage to Fixed and Floating Objects (“FFO”).
7.3.3 “Fixed and floating objects”
Fixed and floating objects are those which do not qualify as ships. Quays, docks, bridges, piers and jetties belong to this category and are indeed “fixed”. Cranes, buoys, dolphins, lightships, fishing nets as well as breeding stations for fish and seafood are also FFO. Oil rigs are FFO if attached to the seabed but “ships” if towed or proceeding under their own power. A barge is a ship even if it has no propulsion of its own. A wreck has ceased to be a ship and qualifies as FFO. Increased concerns for the environment have caused claims to be filed for damage caused to coral reefs following a grounding. Any such collision/allision liability would qualify as FFO. Liability for damage to objects of this nature is covered under this section to the extent that no cover is provided under the Hull policy.
The liability for FFO is different from collisions with ships in that collisions are normally determined in accordance with international conventions. For FFO on the other hand no such international conventions exist and the liability is to be determined by local law and jurisdiction if no contract in place with e.g. a terminal.
7.3.4 Excess FFO collision liability
The second part of this section refers to the situation where FFO is covered under the Hull policy but where the Hull value agreed is insufficient to cover the liability caused. The same cover applies as under Rule 7 Section 2. See the comments under 7.2.4.