Debt collection and MARPOL costs cover for ship managers

ITIC is pleased to announce a brand new additional legal expenses and debt collection cover for ship and crew managers. The new product is specifically tailored to assist prevailing challenges faced by ship managers when carrying out their obligations under the ship management contract.

Debt collection insurance is very popular with ITIC’s members. This cover has been offered since 1925 to shipbrokers and ship agents and assists in the recovery of outstanding debts (such as commission, survey fees and port disbursements). ITIC will now extend debt collection cover to support ship managers who often find themselves struggling to recover sizeable debts under their ship or crew management contracts. On the ship agency and shipbroking side alone, ITIC has recovered more than US$272m, since 1992, in unpaid commission, outstanding port disbursements, survey fees and other debts for members.

The new product will cover the costs incurred in respect of collecting any debt owed to the ship manager related to the insured services under their ship manager or crew management contract. This could also include where the ship manager is owed a debt specifically in respect of the EU Emission Trading Scheme (EU ETS) or FuelEU Maritime Regulations.

For debt collection support, ITIC takes into account that tact is often vital to preserve commercial relationships and in most cases a polite reminder is all that is needed to secure payment. If proceedings are, however, necessary and supported by the member, ITIC’s specialist claims team will use whatever legal means necessary to try to recover the monies owed, which can even include ship arrests.

This new cover will not only enable ITIC to support ship managers with the recovery of their debts, but there is also the option to add on further additional cover to support the costs of defending any claim against the ship manager related to an alleged violation of any penal statue or regulation when providing ship management services in relation of MARPOL, or similar convention, regulation or law.

The cover will pay the legal costs of pursuing the debt or defending the alleged violation.

For more information or a quotation on ITIC’s new product for ship managers, please contact your insurance broker or ITIC Account Executive.