The offshore and hydrographic sector

ITIC’s involvement within the offshore sector has continued to grow, with the number of members categorised as working within the offshore business increasing from 24 in 2011 to 52 at present.

ITIC has wide experience in assisting companies working in the offshore environment to minimise the financial impact arising from mistakes such as:

• Negligent design of subsea equipment
• Failure to update a chart when new information is available
• Failure to conduct a harbour survey correctly, causing the grounding of a vessel
• Producing a chart with an incorrectly marked rock
• Failure to notify interested parties on the laying of a submarine cable

Offshore and hydrographic surveyors and consultants have traditionally held the belief that their professions entailed no great need for professional indemnity insurance, given the extremely rare incidence of claims and the often research-based nature of the services they offer. As the offshore industry continues to expand, however, the range of services demanded grows in complexity and diversity. Clients of the offshore professional are also increasingly prepared to claim for negligence wherever investment may be compromised and delays or losses incurred.

Professional indemnity cover is now often a prerequisite to the contract. ITIC can offer your client cover on a contract by contract basis, however it is recommended that annual professional indemnity cover is taken out. It is often more cost effective to purchase on an annual policy than by contract. For more information, please contact Robert Hodge the Senior Account Executive responsible for offshore business.

On the Rocks

The Swedish Hydrographic Office produced a navigation chart with an incorrectly marked rock. A Russian tanker struck the rock and filed a claim against the organisation. The Swedish Supreme Court held that the Hydrographic Office was liable to the tanker owners for the consequences.

This included the damage to the ship. Additionally, the Court held that because the chart was defective, the owner had a valid defence to any claim for the clean-up costs of the resulting oil spillage and any pollution claims.

Subsea power cable

A major survey company was contracted to survey the seabed for the routing of a power cable. This cable was used to connect to an offshore wind farm to the power grid via a substation ashore. Unfortunately, the routing was not carried out correctly, and the cable could not reach the intended landing point.