ITIC and ASG launch new surveyors’ indemnity wording

International Transport Intermediaries Club (ITIC) and the Admiralty Solicitors Group (ASG) have launched a new surveyors’ indemnity wording designed to address the imbalance between owners’ and surveyors’ responsibilities typically encountered under existing indemnity agreements.

Surveyors are invariably asked to sign a waiver and indemnity by the master of a vessel before they are given approval to board. Such documents will frequently stipulate that surveyors must waive all rights to make a claim against the owner and the vessel in respect of any personal injury or loss of or damage to their equipment which they suffer, even if it is caused by the fault of the owner. Conversely, surveyors are also asked to indemnify the owner if any of the vessel’s crew suffer death or personal injury, or if there is any loss or damage to the vessel itself or its equipment. Occasionally, the indemnity will even extend as far as claims made against the owner by third parties.

Mark Brattman, ITIC’s legal director, says, “These waivers and indemnities are usually presented to surveyors as they are climbing aboard the vessel. Surveyors therefore do not have a realistic opportunity to read such documents and invariably just sign them, in order to gain access to the vessel to perform their jobs.

“ITIC has seen many owner-produced wordings over the years, all of them unfavourable to the surveyor. The ASG had a wording which was a significant improvement on the owner-produced documents, but ITIC felt that this could be made more balanced. With the agreement and co-operation of the ASG, a new wording, the ASG/ITIC 10 has been produced.

“Under the ASG/ITIC 10 wording, the owner will have the usual responsibilities of any occupier to any visitors, unless the vessel is considered a casualty, in which event the surveyor will acknowledge that the master cannot guarantee the safety of visitors, and the owners’ liability will be restricted to losses specifically caused - or contributed to - by the negligence, recklessness or wilful misconduct of the owner. Discussions about what constitutes a casualty can take place after the event, thereby allowing the surveyor to avoid the need to negotiate on the steps of the vessel.

“Both ITIC and ASG agree that the new wording represents a far more equitable apportionment of liability when surveyors are asked to attend a vessel, whether by a P&I club on behalf of an owner or by charterers, cargo interests or insurers.”


ITIC is managed by Thomas Miller. More details about the club and the services it offers can be found on ITIC’s website at www.itic-insure.com

The Admiralty Solicitors Group promotes and preserves standards in the practice of maritime law in England. As well as Admiralty Law issues, its interests also embrace dry matters, including the carriage of goods, sale and purchase, insurance and all other aspects of shipping law in which member firms play a prominent part.

For more information:
Charlotte Kirk
ITIC
Tel. +44 (0)20 7338 0150
Fax. +44 (0)20 7338 0151
charlotte.kirk@thomasmiller.com

ITIC launches cyber liability insurance extension

 

International Transport Intermediaries Club (ITIC) has launched a cyber liability extension to ITIC policies to protect its existing professional indemnity members against the growing threat posed by hackers.   ITIC has always provided cover for damage arising from the loss of or damage to computer records in its members’ custody. But it says that a new threat has emerged in the form of third parties misusing the systems of its members to cause damage to data held by others. Hacking into systems operated by service providers, says ITIC, can be used by criminals as a gateway to gain illegal access to information systems.   ITIC Underwriting Director Alistair Mactavish says, “The use of information technology and electronic communication is a central feature of the activities carried out by ITIC’s members. Any business can be the subject of an attack by hackers. For example, hackers could use a liner agent’s system to obtain the release of cargo which they then steal. In covering their tracks, the hackers might destroy all data relating to rates, container numbers and dates and places of loading”.   “In another example, a shipbroker’s computer system might be accessed by fraudsters who use it to send messages to charterers, altering the banking details for hire payments. Or malware could be inserted onto a ship manager’s network, disrupting operation of the ship and resulting in claims for delay.”   It is in response to such threats that ITIC has developed an extension to its existing cover, which will protect against liabilities arising from the unauthorised use of its members’ computer networks. This will provide insurance to cover, among other things, misuse of computers operated by ITIC’s members, together with any software and peripheral devices necessary to make those computers function - including servers, networking equipment and data storage devices.   The cover will respond in respect of acts by people who gain access to members’ computer networks without their permission, or people who are granted access for a legitimate purpose but misuse that access to cause harm. The policy will cover a member’s liability to pay compensation to a third party damaged by the unauthorised use of the member’s computer network and all associated legal and experts’ costs incurred by that member.

ITIC is managed by Thomas Miller. More details about the club and the services it offers can be found on ITIC’s website at www.itic-insure.com

 

 

 

For more information:                             

Charlotte Kirk                                              

ITIC                                                               

Tel. +44 (0)20 7338 0150                          

Fax. +44 (0)20 7338 0151                         

charlotte.kirk@thomasmiller.com