Good Contractual Risk Management
- Date: 04/03/2015
As the world becomes more litigious, ITIC has seen Members in the Middle East, and beyond, focusing more on their contractual risk management. ITIC always encourages Members to use standard terms and conditions in their dealings with customers.
Standard template contracts and details of how these terms can be incorporated can be found on ITIC’s website: http://www.itic-insure.com/rules-publications/standard-trading-conditions/
In the absence of clear contractual provisions Middle Eastern law can be unpredictable. Important relationships should be governed by formal contracts.
The contract should provide details of how you limit your liability and how both parties agree to resolve disputes. This is as important to a major ship manager, responsible for 100+ ships, as it is for a one man surveying company. If you fail to limit your liability, then you expose the assets of your company.