Page 21: of Maritime Logistics Professional Magazine (Q1 2011)

Maritime Risk

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www.maritimeprofessional.com Maritime Professional 21 was concerned about the fire load in the vessel, but accepted the regulatory con- sultant’s recommendation to place alu- minum plates over the fuel tanks to reduce the fire load in lieu of adding the insulation.

The same regulatory consultant also helped a construction company get an uncertified barge temporary certifica- tion so that available space could be used to carry commercial cargo to help defray the cost of moving the barge and construction equipment to a remote job site.

What does this have to do with insur- ance? Well, if the barge had sailed with- out the temporary permit, she would be considered “unseaworthy per se”, and that would have voided her Hull &

Machinery policy. Recognizing the quandary, the broker got the regulatory expert involved with the client and

Coast Guard to make sure the barge could sail with cargo and keep her insurance in effect.

THE BIG PICTURE

In choosing a marine insurance bro- ker, it is prudent to look past what the insurance company provides and meas- ure what the broker brings to the table.

Large, sophisticated businesses with risk management departments “get it.”

They typically choose their broker through a broker selection process where the brokers are not allowed to talk to the insurers. Instead, the brokers have to demonstrate their skills, experi- ence, and in-house resources. From this information, and usually following per- sonal interviews, a broker is selected.

After studying the risks and expo- sures, the selected broker will make rec- ommendations that fit within the com- pany’s comfort and ability to retain risk, and then develop an insurance plan to cover risks that can’t be avoided, trans- ferred, or retained. Once management agrees with the plan, the broker can work with the entire insurance market to develop the most cost effective insur- ance program that brings the greatest value. And the broker should be required to demonstrate how the various insurers compare in price and coverage.

Without a doubt, the best way to develop an effective risk management program is to start by choosing the right marine insurance broker and then inte- grating that selection into your risk management team. Simply stated, that’s “a Partnership for Protection.”

While others are not, we continue to lend!

Independence Bank is pleased to announced the financing of:

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Click on commercial lending

Call Mike Sammartino 401-471-6318

Toll Free: 1-877-252-8583, ext. 318

EMAIL: msammartino@independence-bank.com

Subbase Drydock, Inc. of St. Thomas, USVI

Financing of New 1000 Ton Drydock

May Ship Repair of Staten Island, NY

Working Capital Loan

Love City Car Ferries, Inc. of St. John, USVI

Vessel Refurbishment Loan

USA Island Seafood, Inc. of Saipan,

Commonwealth of the Northern Mariana Islands, USA

Financing of Processing Plant, Fishing Vessels and Working Capital

Borinken Towing & Salvage, LLC of St. Croix, USVI

Financing of two Tugs and two Barges

Velvet Maritime of Hahnville, LA

Financing of Tug Boat

Marine & Fishery Finance

Maritime Logistics Professional

Maritime Logistics Professional magazine is published six times annually.