Professional Indemnity Insurance for P&I Club Correspondents
ITIC insures over 70 P&I club correspondents globally. We are aware that at least one International Group club is considering that all their correspondents obtain professional indemnity insurance. We anticipate that a number of other clubs will follow suit.
ITIC has recently commented on a proposed P&I club contract for its correspondents and highlighted areas where, ITIC believes, the correspondent should not held liable. ITIC has also commented on what it considers is a reasonable limit of liability for a P&I correspondent. ITIC knows that a P&I club correspondent works hard for the clubs and owners that they represent. If you would like advice on any contract sent to you, please do contact us.
Irrespective of whether correspondents are required by the clubs for whom they act to take out insurance, correspondents clearly face an exposure to claims from both their principals and third parties in respect of the work they undertake in investigating and responding to an incident. ITIC has handled, on behalf of its correspondent members, claims arising out of missed time bars and acting without the principal’s authority in conducting settlement discussions.
The following case, handled by ITIC on behalf of one of its correspondent members, illustrates the importance of having adequate insurance in place...