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Member, Beacon International Group, Ltd.
MONTREAL—A cargo ship that ran aground and spilled fuel, closing a section of the St. Lawrence Seaway near Montreal, has insurance coverage written by the Standard Steamship Owners' Protection & Indemnity Assn. (Bermuda) Ltd.
The M/V Richelieu, a Canada Steamship Lines vessel carrying wheat, lost power Monday and spilled 50 to 200 tons of fuel when the ship hit a canal bank and punctured a fuel tank, according to the St. Lawrence Seaway Management Corp.
Cleanup is expected to last into next week, Montreal-based Canada Steamship Lines said in a statement.
The Standard Club, a protection and indemnity club insurer, confirmed Wednesday that it provides coverage for the shipowner, but did not provide details. P&I clubs provide third-party legal liability and other insurance.
The Standard Club is a member of the International Group of Protection & Indemnity Clubs. Members of the group participate in a pool that allows them to share claims larger than $8 million. For claims that exceed $50 million, the clubs have reinsurance up to $2.05 billion. Oil pollution claims are reinsured to $1 billion.
Divers were installing steel plates to seal the breach in the Richelieu's hull, which will allow the vessel to sail by the end of this week to Quebec City to unload its cargo of wheat, Canada Steamship Lines said Wednesday.