Welcome to this 2012 Naval Architecture Claims Special edition of The Wire
The Wire is ITIC’s e-newsletter which is sent to insured members of ITIC and their brokers several times a year. Each issue is specifically targeted to a sector of the membership, which on this occasion is naval architects. The following selection of claims is to provide you examples of what could happen in your business and therefore alert you to any loss prevention measures that you need to take.
Naval architects should ensure that they operate on standard terms and conditions, which clearly set out the scope of work – what you will, and will not be responsible for. ITIC has a draft copy of standard trading conditions on the website : www.ITIC-insure.com. The contract should also limit liability to a specific amount relative to the fee being earned for the project. Choice of jurisdiction and governing law may also help reduce or limit potential exposure. Finally, an exclusion or limitation clause should be included to account for any alterations made after the initial design.
Irrespective of what steps you take to protect your company, sadly we are only human and mistakes will happen. When you are faced with a mistake, you need an insurance company alongside you to strike the balance between keeping your client as happy as possible as well as assisting you with the claim.