Ship Repairers’ Liability Claims

 

Where a vessel is damaged during the course of repairs, our role is to provide an independent view on the liability of insurers under the Ship Repairer’s Liability policy. 

 

Depending on the cause of the damage and the terms and conditions under which the repair work was undertaken, the ship repairer may be wholly or partially liable for the cost of rectifying the damage.  Whilst the question of liability under the contract may be a legal issue requiring the advice of lawyers, the quantification of the claim is an area in which we can assist.

 

This will involve:

 

  • Consideration of the proximate cause of the loss and its’ application to the coverage under the policy.  We can obtain independent consulting engineering advice where required to assist in identifying the potential causes of damage or areas for further technical investigation.

  • Reviewing the expenses incurred and advising the ship repairer and insurers with regard to the amounts which may be claimed.  The role is independent and the aim is to ensure that the ship repairer receives the correct indemnity in accordance with the terms of the policy and be able to explain the result to the satisfaction of both the shipbuilders and their insurers.

 

Our early appointment on a case can assist both insurers and ship repairer.  Ship repairers are often faced with choices as to how to undertake repairs to the vessel and we can provide timely advice as to how the policy should respond so that informed decisions can be made. 

 

For larger claim, we may be able to recommend a payment-on-account from insurers to ease the cash flow issues which a large casualty can present to the ship repairers.

 

We will prepare an adjustment which will clearly deal with the questions of policy liability and the correct allowances which can be included in the claim.

 

Our fees traditionally form part of the claim (regardless of whether the initial appointment comes from the ship repairers or the insurers) and are fully recoverable from insurers.

 

​© 2014 Willum Richards

Fellow of the Association of Average Adjusters