ITIC's scheme for members of the Swedish Shipbrokers' Association...
ITIC provides an exclusive and affordable insurance scheme for the ship agent and shipbroker members of the Swedish Shipbrokers’ Association. The scheme is aimed at the type of member, who perhaps does not feel as if they have a great exposure, but would like the comfort that if a claim is made against them that they will have an insurer, who understands the situation and will be able to support and guide them through what could be a very stressful time. Coverage is subject to the approval of ITIC Underwriters and obviously those members who currently have both Swedish Shipbrokers' Association Membership and ITIC insurance have probably had their premium discounted as ITIC does acknowledge membership of certain organisations, as part of ITIC's underwriting system.
This scheme provides a choice of limits of either USD 150,000 or USD 250,000 and an excess of USD 2,500. There is the option to also include in your insurance ITIC's unique and successful debt collection service. This is where ITIC will use its network of worldwide correspondents and lawyers to obtain commissions or disbursements which are owed to you.
ITIC has been insuring shipbrokers and ship agents since 1925. As such, ITIC has an incredible depth of knowledge of the types of situations faced and the solutions required by shipbrokers and ship agents.
Shipbroking errors can be made as fast as negotiations can be conducted. The immediacy of electronic communication can often lead to expensive mistakes since detail may be missed in the haste, often driven by other parties, to close deals. Whilst it may be self-evident that the fail-safe approach to errors is to cross and cross-check; time pressures can often create less than perfect conditions for operational excellence.
Examples of errors that might be encountered include:
- misdirected demurrage statements - letter sent to wrong address; demurrage time-bar missed;
- vessel or cargo wrongly described - incorrect dimensions, specification or quantity;
- negotiation errors - failure to pass on the details of an offer;
- negligent statements;
- offer sent to the wrong email address.
- breach of warranty of authority
- acting for a non-existent principal
In the high-speed, high-pressure business of ship agency, time pressures increase the likelihood of errors. Increasing competition means that you have to provide more services to higher standards, in less time, and for lower levels of remuneration than ever before.
Examples of errors ITIC has encountered:
- misdirection of cargo - containers sent to Santiago in Chile, instead of San Diego in California, USA;
- wrong port information provided;
- bill of lading drafting errors - freight marked ‘prepaid’ instead of ‘collect’; or failure to insert clause for on-deck stowage;
- reefer temperature problems - set to +20° instead of -20°;
- manifest errors - weight shown in kilograms instead of pounds, resulting in customs fines;
- incorrect freight quotations - quote for Bilbao in Spain instead of Balboa in Panama. The line will claim any shortfall in freight from the agent;
- mistaken release of cargo - wrong person, incorrect documents – ship owner's insurances will fail.
Why choose ITIC?
- ITIC provides professional indemnity insurance at cost. ITIC is the mutual insurer of the transport industry with no external shareholders to take a profit from the business.
- ITIC pays dividends annually. Surplus funds have been paid out to the Members in the form of continuity credits for the last 17 years.
- ITIC understands your business. ITIC’s specialist knowledge of shipbrokers and ship agents will make it quicker and easier for you to obtain advice and support on a claim under your professional indemnity insurance.
- ITIC is more than just insurance. As an assured at ITIC you will receive support from a team who understand the unique situations and liabilities that your business faces.
- ITIC will provide a sympathetic approach. ITIC understands that you will often have commercial relationships which will need preserving and will work with you to allow that business association to continue. ITIC's unique "discretionary insurance" cover could support any claim which may not normally be paid by another professional indemnity insurer.
ITIC’s professional advice and experience is available at all times; we can help you avoid problems in the first place. If not, we’ve usually seen the problems before and we are here to help you.