TT Club warning over uninsured assets

TT Club used the example of a rail mounted gantry crane ordered from the Far East and delivered by ship fully assembled to an Asian terminal. Unfortunately, as the ship departed, a large section of the ship’s superstructure got entangled with the boom of the crane, rendering it inoperable.

Because the crane was not in operation at that point, equipment cover for the crane had not yet commenced and the unit was therefore not insured for physical damage. This also meant that business interruption insurance wasn’t valid because the damage wasn’t covered.

Laurence Jones, director of global risk assessment, TT Club, said to Port Strategy: “The larger operators generally have a good process in place for new equipment orders but smaller operators need to be careful not to assume that they are insured by the manufacturer when it comes to delivery and installation. They are often stuck in the middle when it comes to dealing with third parties involved in the process – all of whom look to shift the responsibility for any claim.”

Peregrine Storrs-Fox, risk management director, TT Club added: “Not only might there be gaps in insurance cover or contractual agreement, but operators need to be sure that an insurance company is reputable before they buy cover – experienced advice should be sought.”

They said that operators shouldn’t need to be in the position that it is cheaper to walk away than get caught up in an insurance claim and any resulting litigation.