Page 19: of Maritime Reporter Magazine (July 2012)

July 2012www.marinelink.com 19July 27 - On This Day in HistoryPhoto: National Mar-itime Museum1866- The first transatlantictelegraph cable issuccessfully completedCharles Édouard Ar- mand-Dumaresq1929- Geneva Conventionagreement is signedby 53 nationsThis monththe staff of New Wave Media asks our readers to join us in recognizing Gregs 20 year commitment to excellence in maritime publishing.Gregs leadership, dedication and tireless efforts have been reflected in the insight and commentary he has brought to the industry through the pages of our publications. As our Associate Publisher and Editor, Greg man- ages the maritime industrys largest network of print and electronic media, reaching the worlds highest combined maritime circulation - more than 100,000industry professionals. 1992-Greg Trauthwein joins Maritime Reporteras Managing Editorliberate commercial decisions that mustfall outside the ambit of a professional in- demnity policy. These largely relate to the release of cargo without bills of lad- ing. The story normally goes something like this. The consignee is a good customer. He or she explains that the bills of lading have yet to arrive (but are in the post) but they need the cargo immediately (for the Christmas market). The agent allows the consignee to have the goods but the promised bill of lading never arrives ? the real reason the con- signee hasn?t got the bills is because the goods haven?t been paid for. The con- signee goes into liquidation leaving the shipping line and the agent facing a claim.There are a number of similar situa-tions when the agent takes a deliberate risk for commercial reasons. These in- clude misdating bills and mis-describingcargo. Sometimes the risk is known but not properly assessed. Insurance: One Part of a Larger Solution Professional indemnity insurance cov- ers errors not commercial decisions. In-surance is never going to be the whole answer. The result of an error can be the loss of the client, whether or not com-pensation is paid. For many intermedi- aries that is a far worse outcome than an entry on their claims record.Where professional liability insurancedoes have a role it is that the profes- sional?s clients should be able to expect that if the professional makes a mistake there is a reasonable sum available to compensate their losses. Professional in-demnity insurance should protect the in-sureds even if they are not the ones at fault. Insurance can cover an intermediary?s legal liability but not everything the claimant feels it should have received from the transaction that has gone wrong. Professional indemnity insurance can-not provide credit risk insurance for the professional?s clients. Just because you put it in the contract, doesn?t mean it will be insured. Professional indemnity insur- ance covers errors, not commercial deci- sions.Charlotte Kirk is Director at Interna- tional Transport Intermediaries Club Ltd (ITIC). ITIC is managed by ITIM CoLtd, a subsidiary of Thomas Miller &Co Ltd.There is often a large gap between legal liabilities and the aspirations of claimants. Claimant may well feel that they didn?t get what they bargained for and should be reimbursed. This is often the case with claims against yacht sur- veyors. The surveyor will explain that his £200 pre-purchase survey will cover what he can see. The claimant will want a yacht without defects. Surveyors donot guarantee the vessel. The aspirations will always be different. MR#7 (18-25):MR Template 7/9/2012 2:03 PM Page 19