QBE CONTROL Cover MARINE LIABILITY PACKAGE FOR THE TRANSIT SECTOR

Transcription

1 QBE CONTROL Cover MARINE LIABILITY PACKAGE FOR THE TRANSIT SECTOR for Cargo & Related Liabilities for Marine Professional Negligence Part of the QBE PROPEL Solutions range of specialist marine liability In association with Galatea Underwriting Agencies Ltd (London) The transit industry is a minefield of liability risks. That s why you need to take control.

2 QBE CONTROL Cover MARINE LIABILITY PACKAGE FOR THE TRANSIT SECTOR The Problem Liability Minefield Service providers in the shipping and transport industry face a complex range of liability exposures because they are responsible to others, and for the care, custody and control of third party property. The complexity and unique liabilities of international trade are a threat to every service provider in the shipping and transport industries. And if they do not own or charter the craft used to move the cargo, the risk is often beyond their control. QBE CONTROL Cover can help you take control of how you manage these risks. So Many Claims Getting goods from point A to B usually involves numerous parties in the supply chain. When things go wrong and substantial losses are incurred, who will be held liable? Any number of parties can instigate legal proceedings: The cargo owner your customer Sub-contractors Owners or operators of the vessel, aircraft or truck carrying the cargo Authorities Third parties to whom you owe a duty of care Claims can be made under a contract, standard terms of trade, ocean bill of lading or airway bill. Additionally, third party claims in tort, bailment and statutory liabilities can catch you unaware. It is even more difficult when a customer brings a claim against you. After all, the success of your business depends on customer relationships. Complex Exposures Shipping and transport operators, such as freight forwarders, non-vessel operating carriers (NVOC) and other transport intermediaries, face a complex range of liability exposures. As a professional, if you fail to deliver your service with the required degree of knowledge and skill, the law may say you failed to meet the standard of care. You could be liable for the losses to your client or to a third party who could reasonably have been relying on your expertise. Cargo liability risks threaten those who carry or handle cargo. Depending on how you have contracted, you can be held liable for losses as a result of cargo entrusted to your professional care by your customer, authorities and third parties. You could face liability for breach of contract, regardless of whether your company handles cargo or simply provides an administrative service. Even where there is no contractual obligation to an injured party for example, if you cause an accident during or whilst providing services you may face a claim due to third party liability. High Costs of Defence The mere allegation of liability can have a disastrous effect on your business, even if the allegations are false. Whether you are responsible or not, the cost of investigation and legal defence can quickly mount. If allegations are proven, you may have to meet all damages awarded by the court and the legal costs of the complainant. Would you have the means and the expertise to vigorously defend any actions against you? Or to meet a claimant s legal costs? The Solution Capacity, Experience & Specialist Expertise QBE has the capacity and the expertise to efficiently manage marine liability claims and help protect your company s good name and livelihood. The QBE CONTROL Cover package is tailored for the transit sector, and offers two categories of marine liability insurance cover A. Cargo and Related Liability and B. Marine Professional Negligence. Flexible, Specialist Covers QBE CONTROL Cover is a specialist insurance solution that provides the flexibility you need to tailor the policy to your individual needs. The services your company provides to its customers will determine which QBE CONTROL Cover options are most suitable for you. Your insurance broker or agent can advise you on the exposures you face. Freight forwarders and multi-modal transport operators will be more interested in covers from Policy A Cargo & Related Liability Insurance. This category insures you for loss or damage to cargo in your care, custody and control. It includes comprehensive cover for loss of, or damage to, cargo (such as theft, pilferage, fire, wet damage etc), plus a range of optional liability extensions. Intermediaries who are slightly more distanced from cargo handling will be more interested in the covers available under Policy B Marine Professional Negligence Insurance. This category includes insurance for negligent performance of services. It includes liabilities arising from errors and omissions, fraud by employees, defamation, loss of documents and unintentional breach of warranty of authority. The tables on the far right provide details on the risks that can be covered and suggest how you might tailor the policy to meet your individual needs. The insert provides a brief explanation of these covers. (Your insurance broker or agent can assist you in this respect.)

3 Local Knowledge & Service QBE Asia Pacific is a division of the worldwide QBE Group. Our commitment to the Asia Pacific region dates back to the late 1880s, so we have a wealth of local knowledge and a comprehensive network of. Our Specialist Marine Network includes significant marine units in Hong Kong, Singapore, Philippines, Thailand, Papua New Guinea and New Zealand, where we combine our local knowledge with specialist expertise. With throughout the Asia Pacific region, offices in over 40 countries worldwide and a comprehensive network of settling agents, QBE is well placed to provide a local response. And when a claim occurs, local knowledge and the ability to respond quickly can make all the difference. London Calling In association with Galatea Underwriting Agencies Ltd, we specifically designed the QBE CONTROL Cover policy for service providers in the shipping and transport sector. Based in London, Galatea specialises in providing global marine liability underwriting and claims services on behalf of Lloyd s underwriters. The combined expertise of Galatea and QBE gives clients a world of local expertise. Who Can Apply? QBE invites applications from any service providers operating in the shipping and transport sectors, including sea, land, air and inter-modal operators as shown in the table below. Additional Policies In addition to QBE CONTROL Cover, clients in the transit sector will be interested in these policies: Customer s Cargo Insurance This is a separate marine cargo insurance, which can be arranged on behalf of shippers, owners of cargo or consignees. Coverage is not automatic but quotations are available on request from any QBE branch offices. Charterer s Protection & Indemnity The QBE PROPEL Solutions range of marine liability products also includes a specialist insurance solution for shipowners and charterer s protection and indemnity, which is available as a separate policy. You can find copies the QBE MARINE P&I Cover literature on-line, including product brochure and proposal form visit our web site and follow the links. Service Providers in the Transport Sector Sea Land Air Inter modal operators Ship agency Ship management Ship broking Incidental stevedoring Marine surveying Marine consultancy Road haulage Warehousing Railway Packing & consolidating Air freight forwarding Air cargo agency roles Freight forwarding as agent and principal Non-vessel operating carriers (NVOC) who operate services by sea, air, road, rail or river Naval architecture and design Container freight station New building supervisors Trade associations Consult Your Insurance Adviser A brochure like this can only ever provide a summary, so it s important to discuss the policy cover with your insurance adviser. We encourage you to familiarise yourself with all the exclusions before taking up the cover. Please discuss both the general and specific policy exclusions with your adviser. They can obtain a copy of the policy wording from our local QBE office. IMPORTANT NOTICE: The information contained herein is subject to the terms, conditions and exclusions of the policy wording, a copy of which can be obtained from our local QBE office or agent, or your broker.

4 Policy A - Cargo & Related Liability Insurance Available Covers Market Segments Under this policy, the basic package includes: Cargo liability Ocean and Air Freight Forwarders Liability for damage to customers equipment Non-Vessel Operating Carriers Liability for consequential loss Multi-modal Transport Operators Third party legal liability Liability for other financial loss Liability for unintended pollution Costs associated with claims under the policy Plus a range of optional extensions: Liability for misdelivery of cargo Customs Agents Packing and Consolidating Warehouse Depot Operators Global Logistics Managers Road Haulage Operators Incidental Stevedore Operations Liability for misdirection costs Liability for delays Liability to general average Liabilities for fines & duties Extended reporting period for cargo liability * Note: Clients in these market segments should also consider QBE CUSTOMER S Cargo insurance, as a separate policy. Policy B - Marine Professional Negligence Insurance Available Covers Market Segments Liability for negligent performance of insured services plus optional extensions for: Liability for fraud of employees Liability for libel and slander Liability for breach of warranty of authority Third party legal liability Misdirected liability claims (when acting as an agent for a principal) Costs associated with claims under the policy Ship Managers Shipbrokers (Chartering and S & P) Ship Agents (Liner and Tramp) Marine Surveyors and Consultants Naval Architects and Designers P & I Club Correspondents Lloyd s Agents and Marine Adjusters Yacht Brokers and Bunker Brokers Ship Registers Marine Reporting and Statistical Service Providers Additional legal expenses For Ship Agents and Shipbrokers Only

5 Transit Case Studies Limiting Damage A freight forwarder arranged the shipment of a cargo consignment from Singapore to Italy. The forwarding company used its house bill-of lading. Unfortunately, the cargo arrived in a damaged condition. The claim for US$46,000 was reduced to US$19,000 under the bill-of-lading limitation clause. As the ocean carrier had ceased trading, the subrogated claim failed. Doing It Cold In error, a ship agent instructed a terminal operator to set the temperature for three reefer containers to minus 20 degrees instead of minus 2 degrees. This resulted in a claim against the shipping line under their bill of lading. The claim was settled at US$25,000 and the shipping line subsequently claimed against the ship agent. Defective Judgement Following receipt of a report detailing a potentially serious defect to the hull structure, a ship s superintendent, employed by a ship manager, failed to implement repairs. On the subsequent voyage, the ship encountered heavy weather and had to seek a port of refuge. Cargo was lost and there was considerable damage to the ship s hull. The total claim exceeded US$15 million. Both the hull and protection and indemnity underwriters immediately declined cover on the basis that the ship was unseaworthy. The ship manager was potentially liable and a compromise settlement had to be negotiated. The settlement exceeded US$4 million. Count On The Unexpected At an on-hire survey, a marine surveyor was asked to report on the lashing gear on board a container ship. The surveyor thought he was simply required to count the number of different types of equipment. Cargo was lost overboard during a subsequent voyage. As a result, the surveyor received a claim of US$750,000 for failing to report on the bad condition of the lashing gear. Although the claim was successfully defended, the marine surveyor was not able to recover all the legal costs incurred in defending his professional reputation. The unrecoverable portion of the legal costs exceeded US$30,000. Don t Bank On It A freight forwarder was given specific instructions to release cargo only on instructions from the bank. Instead, the forwarder s agent released the shipment to another party. To make matters worse, on an undertaking from an unauthorised ex-employee of the shipper, the specified delivery address for the shipment was changed. The shipper could not recover the shipment, nor did they receive any payment from their client. The shipper naturally claimed against the freight forwarder. The claims amounted to US$41,000. The Cost of Being Late A forwarder was specifically told to collect a shipment from a warehouse and to immediately airfreight it. But someone misread the instructions and held back shipment. The consignee was a procurement agent, and the goods were required to meet a production deadline. Subsequently, in order to meet their obligations, the consignee had to source other components locally and pay a higher price. When the consignment finally did arrive, it was too late for its intended purpose. The forwarder was made to compensate the consignee for the additional costs incurred. Unbalanced Liability A forwarder collected a consignment of goods from the airport. The goods were collected in good condition and forwarded to the vessel for ship s use. During the process of lifting the goods from a lorry, the ship s lifting equipment tilted because of an uneven balance of weight, and the sling gave way. The goods fell onto the lorry, resulting in damage to both the goods and the lorry cabin. Luckily no one was hurt. But the forwarder had to pay for replacement of goods and cost of repair to the vehicle. He successfully claimed against his insurance policy for the replacement cost of the goods. IMPORTANT NOTICE: The information contained herein is subject to the terms, conditions and exclusions of the policy wording, a copy of which can be obtained from our local QBE office or agent, or your broker.

6 QBE CONTROL Cover MARINE LIABILITY PACKAGE FOR THE TRANSIT SECTOR Description of Covers Policy A Cargo & Related Liability Insurance Risks Covered Cargo liability Liability to customers equipment Liability for consequential loss Liability for misdelivery of cargo Liability for misdirection costs Liability for delays Liability to general average Liability for fines & duties Third party legal liability Liability for unintended pollution Costs associated with claims under the policy Explanation Liabilities arising from physical loss or damage to cargo in your care, custody or control, provided that liability arises from an international transport convention or under an approved contract. Covers liability for loss or damage to your customers equipment resulting from your legal liability. Covers liability for consequential loss arising from a cargo or equipment claim made against you. Covers liability in the event of an error or omission. Covers liability in the event of an error or omission. Covers liability in the event of an error or omission. Covers liability where cargo interests are required to contribute to general average and salvage and which you are unable to recover from your customer. Covers fines etc for unintentional breaches of regulations relating to cargo, immigration, pollution or work safety conditions. Covers liability for bodily injury or physical loss or damage to third party property resulting from an accident whilst directly performing your insured service. Covers liability for sudden & accidental pollution & clean up costs. Covers the costs of defending and mitigating claims made under the policy. Policy B Marine Professional Negligence Insurance Risks Covered Liability for negligent performance of insured services Liability for fraud of employees Liability for libel and slander Liability for breach of warranty of authority Third party legal liability Misdirected liability claims when acting as an agent for a principal Costs associated with claims under the policy Additional legal expenses (for ship agents and shipbrokers only) Explanation Covers errors and omissions made during the course of providing your insured services. Covers claims arising as a result of fraudulent acts of your staff. Protects the Insured in the event of a defamation claim. Covers intermediaries who may have breached the warranty of their authority. Covers liability for bodily injury or physical loss or damage to third party property resulting from an accident whilst directly performing your insured service. Covers the liabilities of the principal that a third party may attempt to claim from the agent. Covers the costs of defending and mitigating claims made under the policy. Provides legal expenses cover, for example, those incurred to recover outstanding disbursements and commissions. Additional Policies Available for Transit Sector Clients Additional Policies Customer s cargo Marine protection & indemnity Explanation This is a separate marine cargo insurance, which can be arranged on behalf of shippers, owners of cargo or consignees. Coverage is not automatic but quotations are available on request from any QBE branch office. This cover is designed to meet the contemporary needs of vessel operators. It caters to mid-size companies and owners seeking cover up to US$100 million on dry cargo vessels; container vessels and bulk carriers up to 30,000 GT. Claims covered for ship owners can include cargo, collision, property damage, crew claims, illness and injury, pollution, fines & penalties. Claims covered for charterer s liability can include third party liabilities and damage to chartered vessels. Legal costs and expenses can be covered for both owners and charterers. **Covers provided depend on the contractual nature of the vessel s operation. IMPORTANT NOTICE: The information contained herein is subject to the terms, conditions and exclusions of the policy wording, a copy of which can be obtained from our local QBE office or agent, or your broker.

7 Licensed insurers providing QBE Specialist Risks Unit products are: Specialist Risks Unit Markets Hong Kong QBE Hongkong & Shanghai Insurance Co. Limited 6/F DCH Commercial Centre 25 Westlands Road, Quarry Bay Hong Kong Tel: Indonesia PT Asuransi QBE Pool Indonesia MidPlaza 2, 23rd floor Jalan Jenderal Sudirman Kav Jakarta Tel: +62 (21) Macau No , Avenida Da Praia Grande 9 andar B, Edificio Keng Ou Tel: Mainland China QBE Insurance Group Limited Guangzhou Representative Office Unit 1812, South Tower World Trade Centre Huan Shi Dong Road Guangzhou Guangdong Province Tel: +86 (20) Malaysia QBE Insurance (Malaysia) Berhad (J61086-D) (Formerly known as QBE-MBF Insurans Berhad) 15th floor, Bangunan MAS Jalan Sultan Ismail Kuala Lumpur Tel: +60 (3) Papua New Guinea QBE Insurance (PNG) Limited QBE Building Musgrave Street PO Box 814 Port Moresby Tel: Philippines QBE Insurance (Philippines) Inc. 16th floor, Equitable Bank Tower Building 8751 Paseo de Roxas Makati City 1226 Tel: +63 (2) Singapore 65 Chulia Street #36-01 OCBC Centre (West Lobby) Singapore Tel: Thailand QBE Insurance (Thailand) Company Limited 161/1, 11th 12th floor, SG Tower Building Soi Mahatlekluang 3 Rajdamri Road Lumpinee, Pathumwan Bangkok Tel: +66 (2) Vietnam BIDV-QBE Insurance Company Limited 7th floor, North Star Building 4 Da Tuong Street Hoan Kiem District Hanoi Tel: +84 (4) Other Markets Fiji QBE Insurance (Fiji) Limited QBE Centre Victoria Parade GPO Box 101 Suva Tel: New Zealand Level 6, Quay Tower 29 Customs Street West Auckland Tel: +64 (9) French Polynesia Immeuble Galliéni Front de Mer PO Box 283 Papeete, Tahiti Tel: Solomon Islands 1st floor, Centrepoint Building Mendana Avenue PO Box 764 Honiara Tel: New Caledonia 5 Rue Anatole France, BP Noumea-Cedex Noumea Tel: Vanuatu QBE Insurance (Vanuatu) Limited La Casa D Andrea Building Port Villa PO Box 186 Tel: +678 (2) 2299 For literature in use in the other markets listed above, please contact the local office. FC/QBE893/