One of the conditions in almost every mortgage contract between financiers and ship owners is that the latter are obliged to have at all times in place at least the following insurances: Hull and Machinery (H&M), H&M War and Protection & Indemnity (P&I). Since the mortgagees are not participating in the every day business of the ship owner, a breach of contract or gross negligence on the part of the ship owner could invalidate these insurances in place. In an attempt to cover this exposure, normally mortgagees insist in having an extra level of cover, known as MII, which covers the above risks, whilst the premium is usually for ship owners' account with a limit of liability amounting to the outstanding loan. There are also circumstances, where mortgagees’ claims are subordinated to maritime or priority liens in favour of plaintiffs. In such instances, MII underwriters shall respond and indemnify financiers for the loss they have realised due to such subordination. Normally, MII underwriters would exclude legal costs and insolvency and may decline claims that have not been presented to H&M, H&M War and P&I underwriters first. Additionally, the lawful termination of ship owners' policies or P&I club entries due to non payment of premium shall not trigger remuneration from the MII underwriters. In this context and in order to some extent protect their interests, mortgagees usually insist in including in all insurances undertaken by ship owners a notice of cancellation to the mortgagee which obliges underwriters and/or insurance brokers to provide fourteen (14) days written notification prior to exercising their right to terminate covers due to non premium payment.