Marine Finance & Insurance
bridge alone: $244 million. � In November 2007, with thick fog cutting visibility, the container ship Cosco Busan struck the San Francisco Bay Bridge, spilling 50,000 gallons of fuel oil into the bay. Government agencies have estimated the cost of the damage and environmental cleanup at $60 million. The pilot, who has yielded his license and retired, has been charged with criminal negligence. Although such disasters are infrequent, the cost in human suffering and damages can be quite high. The ripple effect after an accident can leave pilots not only emotionally distraught but also financially threatened through their shared responsibility for damages and the possible loss of their license. Despite this exposure to liability, pilots have not always steered as carefully through the insurance decisions they should be making as they do into the ports they know so well. Often individual pilots may look to coverage by the ship owners/operators or expect their local association's self-insurance to take care of them. But both of these default choices can leave pilots dangerously exposed. Although ship owners/operators retain final authority - and therefore responsibility - when their vessel is being piloted into and away from port, their coverage may not include provisions that extend to contracted services, such as piloting. And if it does, there can still be a conflict of interest over what battles are fought to assign blame. "Self-insurance," unfortunately, can become "no assurance" at all when a small organization of 50 or 60 pilots is expected to share in the massive cost of repairing damages and compensating others for their losses. The Merchant Officers Protection Syndicate (MOPS) addresses some of the concern by offering marine license insurance that provides income protection and unlimited legal defense against licensing actions, as well as offering optional defense coverage for civil and criminal claims and penalties. In addition, a number of insurers offer a full range of coverage that can protect pilots and associations. These include: � Policies that cover the hull, machinery and equipment, including collision liability. � Protection and indemnity coverage that addresses legal liabilities arising out of negligence in the operation of a pilot boat. � Professional liability policies that cover errors and omissions in the performance of professional duties.
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Supporting Locations
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AUTHORIZED DISTRIBUTOR FOR ORKOT MARINE BEARINGS GREAT LAKES REGION - US / CANADA � 440-933-4898 � RHurrell@QBMUSA.com
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BUILDER OF QUALITY ALUMINUM BOATS
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� General liability coverage that addresses the exposures common to all business operations (property, auto, crime, business interruption, etc.). Pilots play a tremendously important role in our economy, assuring that commerce into and out from our ports goes smoothly -- almost all of the time without incident. Their jobs are daring and adventurous, and the danger from nature's elements is very real. However, there is no reason they also have to be exposed to the danger of uncovered risk. By working closely with their associations and knowledgeable insurers, they can create a safety net for those once-in-a-lifetime disasters that are as unpredictable as the sea's storms.
Maritime Reporter & Engineering News
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