23 April 2008
Ports and Terminals
Liability Insurance
Port Authority
What is a Port Authority?
A body (corporate or incorporate) which owns and/or runs
the infrastructure of the Port:-
wharves, docks, quays, moorings
terminal buildings and port equipment
road/rail facilities within the installation
Car parks / roads / bridges
May also provide:
security / emergency services / customs
Waste disposal
Bunkering
buoys &/or moorings &/or dolphins
navigational aids, channels, approaches to terminal
pipelines
Electricity / water supply
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Port Authority
What is a Port Authority?
It may in addition
Lease space to terminal operators
Receive revenue mainly from rental charges or
provision of services.
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Terminal Operator
What is a Terminal Operator
Physical operation of a dock / pier
Stevedoring of vessels
Storage of cargo
Loading / unloading of trucks / railcars etc
Stuffing / unstuffing of containers
Mooring of vessels
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Insurance Coverages
Types Of Coverage
Liability
Property Damage
Business Interruption
Hull and P&I
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Liability
Liability
Liability to who / from where
Imposed by Law
Assumed under contract
with vessel owner
with cargo owner
with stevedores
with Port Authority / Terminal
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Customer Liability
Insurance for liability for physical loss / damage to cargo
and consequential loss arising therefrom
Loss / Damage to Cargo
fire
impact damage
operation of handling equipment
failure of equipment
wet damage
contamination
theft (outsiders and insiders - or both)
temperature controlled cargo
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Customer Liability
Loss / Damage to Cargo - CFS Problems
handling accidents
method of stuffing containers
method of securing cargo
minor theft
misdirection
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Customer Liability
Liability for Loss / Damage to Ships and consequential loss
arising therefrom
dropping of cargo
operation or toppling of gantry crane
condition of berth
pilotage / towage
stuffing of container
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Customer Liability
Terrorism
ISPS Code
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Customer Liability
Loss / Damage to Containers
dropping of container
damage by handling equipment
collapse of stack
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Customer Liability
Errors and Omissions (not resulting in physical loss / damage)
delay
wrongful delivery
other contractual breaches
misdirection of cargo
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Third Party Liability
Liability for loss / damage to third party property
Liability for death, injury , illness of third parties
Eg Damage / Injury to Visitor (eg to trucker or crew member)
incorrect operation of equipment
inadequate traffic system
inadequate maintenance of equipment
inadequate maintenance of port property (eg surfaces
causing trip and fall)
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Third Party Liability
CFS
improper stuffing of cargo causing unstable cargo or
leakage
Environmental
water pollution
air pollution
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Employees
Damage / Injury to Employees
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Fines
Loss of Cargo subject to Duty
Pollution fines
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Costs
Legal
Survey
Expert
Disposal
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Other
Removal of Wreck
Advise & Information Risks
Tenants Legal Liability
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Hull
Hull
Hull for owned vessels
P&I (to hull value) port risks
Excess P&I
P&I cover with a specialist P&I insurer eg P&I Club
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Limit selection
Liability Limits
Geographical location?
Amounts imposed by Government regulation
How easy is it to breach statutory limits?
Any contractual obligation to Vessel owners?
Buy excess layers
In theory, cover needed to the highest valued vessel using the
installation, including cargo value
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Controlling Risks by Contract
Need contractual or statutory protection
Typically port only liable for negligence, plus possibly certain specific
exclusions
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Controlling Risks by Contract
Liability for cargo limited by weight or per container or per incident
also reliance on ship operators ability to limit
Liability for container limited by deemed value
Liability for ship limited to specified sum
Aggregate limit
No liability for delay
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Thank you
