Ask the editor

I have recently had a claim intimated against my company. What do I need to do in respect of getting you information?

Thank you for your query. For many members, especially those who have never had a claim before this is a common question. This is actually dealt with in the ITIC Rules and we have produced a guide on how to report and manage a claim which can be found here.

It should be remembered that the earlier you report the claim (or potential claim) the better. This will always put us in the best position going forward. There is a requirement in the policy for you to tell us about a claim or circumstances which may give rise to a claim immediately upon becoming aware of such circumstances.

Furthermore, it is important to remember that you (and/or your employees) should not admit liability or settle the claim without our prior consent. Doing so can prejudice our future handling of the claim. It makes it very difficult for us to deny liability if you have already admitted you were at fault and caused the loss – especially when upon further investigation it turns out that you were not at fault or that if you were, it was not actually causative of the loss claimed.

Then we get onto the actual query, which is what information should you send to us. The easy answer is all of it. However, it is preferable to have it provided in order and with proper explanations as to what the documents are/what they mean, rather than just dumping all documents on us, so that we then have to spend a lot of time sorting them out ourselves.

The ITIC Rules contains the following clause:

14.4 Information and cooperation: You will cooperate at your own expense in the handling of the claim. You must promptly give the managers any information, accounts, or documents relevant to any claim and assist in the availability of any property for survey or inspection of or of any witnesses for interview. Information, accounts or documents must be provided to the managers in good order, properly explained and in a form appropriate for the efficient conduct of such a claim. You will make yourself and your employees available for any hearings (arbitration or litigation) or mediation as requested by the Club.

What is negligence?

In its most basic form negligence refers to the failure of a transport professional, such as a ship agent, broker or designer, to exercise reasonable skill and care in their duties, resulting in financial loss or damage to their principal or client. This could include errors in documentation, mishandling of cargo, or failure to comply with regulatory requirements.

ITIC’s professional indemnity insurance covers claims arising from such negligent acts, errors, or omissions. It also provides financial protection by covering legal defence costs. If you have made an error, there may still be defences available to you i.e. contractual limitations, time bars, damages claimed as being incorrect etc. It is also possible accusations will be made against you when you have not made an error at all, or an error had no causative effect on the loss (for example, there was an error in the design of a yacht, but it was actually lost due to being hit by a large container ship) and these instances will still need to be defended. This insurance is crucial for transport professionals as it helps mitigate the financial risks associated with potential lawsuits, ensuring they can continue their operations without significant financial disruption.

You can read about the difference between negligence and gross negligence under English law here.