Based on the information provided, there are a few potential liabilities that could attach to the port and terminal operator in these real cases:1. Super Typhoon Maemi (Korea): Potential liability for any damage/injuries caused by inadequate protection/preparation of cargo, vessels, equipment for the typhoon. Failure to follow proper typhoon procedures could result in liability. 2. Fire at Grain Terminal (UK): Potential liability if the fire was caused by any negligence on the part of the terminal operator - e.g. faulty equipment, improper handling/storage of cargo, lack of adequate fire prevention measures. 3. Impact damage by vessel (Taiwan): Clear potential liability for the terminal
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This Marine Liability Webinar aims to cover the below aspects- 1. Introduction to Marine Liability 2. Present various marine liability products such as following and their coverage . Freight Forwarders Liability Ports and Terminals Liability Ship Repairers Liability Other Liabilities (Charterers, P&I etc.)
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Similar to Based on the information provided, there are a few potential liabilities that could attach to the port and terminal operator in these real cases:1. Super Typhoon Maemi (Korea): Potential liability for any damage/injuries caused by inadequate protection/preparation of cargo, vessels, equipment for the typhoon. Failure to follow proper typhoon procedures could result in liability. 2. Fire at Grain Terminal (UK): Potential liability if the fire was caused by any negligence on the part of the terminal operator - e.g. faulty equipment, improper handling/storage of cargo, lack of adequate fire prevention measures. 3. Impact damage by vessel (Taiwan): Clear potential liability for the terminal
Similar to Based on the information provided, there are a few potential liabilities that could attach to the port and terminal operator in these real cases:1. Super Typhoon Maemi (Korea): Potential liability for any damage/injuries caused by inadequate protection/preparation of cargo, vessels, equipment for the typhoon. Failure to follow proper typhoon procedures could result in liability. 2. Fire at Grain Terminal (UK): Potential liability if the fire was caused by any negligence on the part of the terminal operator - e.g. faulty equipment, improper handling/storage of cargo, lack of adequate fire prevention measures. 3. Impact damage by vessel (Taiwan): Clear potential liability for the terminal (20)
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Based on the information provided, there are a few potential liabilities that could attach to the port and terminal operator in these real cases:1. Super Typhoon Maemi (Korea): Potential liability for any damage/injuries caused by inadequate protection/preparation of cargo, vessels, equipment for the typhoon. Failure to follow proper typhoon procedures could result in liability. 2. Fire at Grain Terminal (UK): Potential liability if the fire was caused by any negligence on the part of the terminal operator - e.g. faulty equipment, improper handling/storage of cargo, lack of adequate fire prevention measures. 3. Impact damage by vessel (Taiwan): Clear potential liability for the terminal
- 1. © Zurich INTERNAL USE ONLY © Zurich Marine Liability Presentation 11 May 2023 Harry Taylor – Head of Marine Singapore Amos Ang – Risk Engineering Manager Zurich Insurance Company Ltd Zurich Resilience Solutions
- 2. © Zurich INTERNAL USE ONLY • Who is Zurich? • What is marine liability? • What marine liability products are out there and what do they cover? − Freight Forwarders Liability − Ports and Terminals Liability − Ship Repairers Liability − Other liabilities (Charterers, P&I etc) • Importance of Risk Engineering Contents 2
- 3. © Zurich INTERNAL USE ONLY Zurich Commercial Presence in Asia Where Zurich has no presence such as India, Japan, S. Korea and Taiwan we write business via Singapore Hub, serviced via Country Desks Zurich commercial presence – Australia / NZ, Singapore, China, Hong Kong China niche focus on Casualty and Financial Lines Singapore CI Hub for the region incl. Wholesale (OOT) expertise Hong Kong Market leading composite insurer Australia / NZ Leader in multi-line, complex and alternative deal structures Japan domestic consumer business Zurich composite business with limited Commercial book, cooperating with Singapore to develop CI Accident and Health Helping businesses protect employees and manage risk Casualty Solutions to help protect against a range of liability situations Construction Specialist underwriting and risk management support for construction projects Energy Specialized assistance in onshore property, casualty, and exploration and production coverage Financial Lines and cyber Protecting financial institutions in a complex regulatory world Marine Cargo and Liability Solutions for international and domestic marine exposures M&A Via our MGA partnership with Fusion Property Protecting against loss or damage to buildings, machinery and stock Multi-country, multi-line end-to-end product offering
- 4. © Zurich INTERNAL USE ONLY Our IPZ capabilities continue to be our key differentiator 4 As of Feb 2021. Counted according to ISO territory definition. One of the largest Networks in the insurance industry, covering more than 210 territories* Zurich presence Direct partners No presence Via IPZ NSC Bahrain Via IPZ NSC Malaysia Via IPZ NSC Mexico Via IPZ NSC South Africa Via IPZ SC Slovakia Via CI Switzerland IPZ Network Service Center Mexico IPZ Network Service Center South Africa IPZ Service Center Slovakia IPZ Network Service Center Bahrain IPZ Network Service Center Malaysia IPZ Service Center Spain
- 5. © Zurich INTERNAL USE ONLY • Marine Liability insures someone for their liabilities towards third parties arising out of their insured operations. This can include the following: • Cargo Liability • Third Party Property Damage • Third Party Bodily Injury • Errors and Omissions • Fines and Penalties • Costs • An insured can be liable under the following ways: − International Conventions (Hague-Visby, Montreal Convention etc) − Contracts (bills of lading, air waybills, standard trading terms and conditions, terminal services agreement or bespoke contracts − Tort (negligence) What is marine liability? 5
- 6. © Zurich INTERNAL USE ONLY Freight Forwarder Liability 6 • What are the activities of the insured: − Freight Forwarder − Road Haulage − Warehouseman − Customs Broker − Cargo Packing and Consolidation − Non Vessel Owning Common Carrier (NVOCC) • Agent v Principle
- 7. © Zurich INTERNAL USE ONLY Freight Forwarder Liability 7 • Cover: − Cargo Liability − Loss of damage to cargo in the care custody and control of the insured − Consequential loss as a result of loss or damage to cargo − Third Party Liability − This could be damage to third party property like a warehouse building or a ship − Bodily injury to third parties or loss of life can be covered under this section − Fines & Penalties − Fines from customer for incorrectly declaring cargo resulting in a low import tax as an example − Errors and Omissions − Misdirection of cargo, for example incorrectly completing a bill of lading with the wrong destination − Costs − Costs to help mitigate a loss
- 8. © Zurich INTERNAL USE ONLY Freight Forwarder Liability Contractual considerations 8 • What type of contract are they operating under?
- 9. © Zurich INTERNAL USE ONLY Ports and Terminals Liability 9 • Types of Terminals – What are the differences − Port Authority − Public Port − Private Port − Landlord Port − Terminal Operator − Stevedore
- 10. © Zurich INTERNAL USE ONLY • Handle the following cargo − Containers / TEU − Reefer container − Breakbulk − Heavy oversized cargo − Project cargo • What is the main risk: − Cargo Damage/Loss − Vessel damage − Bodily injury Ports and Terminals Liability Container Terminal 10
- 11. © Zurich INTERNAL USE ONLY • Handle liquid bulk cargo such as: − Oil & Fuel − Chemicals − Edible oils − LNG − LPG • What is the main risk: − Contamination − Fire / explosion − Pollution − Vessel Damage Ports and Terminals Liability Liquid Bulk Terminal 11
- 12. © Zurich INTERNAL USE ONLY • Handle dry bulk cargo such as: − Iron Ore − Coal − Grain − Other ores and sands − Woodchip • What is the main risk: − Contamination − Vessel damage − Fire / explosion − Pollution − Wreck removal Ports and Terminals Liability Dry Bulk Terminal 12
- 13. © Zurich INTERNAL USE ONLY Ports and Terminals Liability General cargo and vehicle 13 • Handle general cargo such as: − Project cargoes − Break bulk − Oversized/non-standard cargo − Vehicles • What is the main risk: − Cargo damage and loss − Vessel damage − Bodily injury
- 14. © Zurich INTERNAL USE ONLY Ports and Terminals Liability Stevedore 14 • Stevedores' past and present • A stevedore works within the port providing loading and unloading services to the terminal • They can handle a variety of cargo types • What is the main risk − Cargo damage − Vessel damage − Bodily injury
- 15. © Zurich INTERNAL USE ONLY • Third Party Liabilities • If we consider a claim like Tianjin Port or Beirut Port the port could be found to be liability for loss or damage to third party property and bodily injury Ports and Terminals Liability 15 • Fines & Penalties − Occupational Health & Safety − Anti-terrorism and security − Immigration • Pollution & Wreck Removal • Errors & Omissions • Consultancy Services • Costs – investigation, mitigation, defence and clean up
- 16. © Zurich INTERNAL USE ONLY Ship Repairers Liability What is ship repairers liability insurance? 16 • Ship repairers are responsible for watercraft and equipment in their care, custody and control as well as damage to third party property and personal injury arising in the course of the Insured’s operations. • Our ship repairers liability insurance policy provides cover for their legal liability • Who needs ship repairers liability insurance? − Individuals or companies involved in the ship repair industry that provide maintenance or repair services to watercraft including:- − painters; − welders; − mechanics (high risk); − plumbers; − upholsterers; − cabinet makers; plus − many other specialist tradesmen.
- 17. © Zurich INTERNAL USE ONLY Ship Repairers Liability Scope of Cover 17 • The policy covers the Insured’s legal liability arising from:- • Loss of and/or damage to watercraft in the Insured’s care, custody or control; • Third party property damage and personal injury; • Products liability; • Ownership, tenancy or use of premises (including car parks); • Ownership, tenancy or use of berths, jetties, pontoons or moorings; • Pollution including clean up costs; • Consequential loss and loss of use of the damaged watercraft • Work away from premises (Traveling Workman) • Use of subcontractors; • Removal of wreck; • Damage to temporary hire equipment; and • Hot work liability. • Optional additional benefits • The policy can also be extended to cover liability arising from:- • Extended hot work; • Other work outside of ship repair operations • Storage of watercraft • Warranty / maintenance guarantee obligations; • Worldwide services for ship repair work undertaken outside of where the insured is domiciled
- 18. © Zurich INTERNAL USE ONLY • Marina Operators Liability • Marine Salvors Liability • P&I • Offshore Energy Liability • Cargo Owners Legal Liability Other Marine Liability Classes 18
- 19. © Zurich INTERNAL USE ONLY • Type of port/terminal or shipyard or logistics company • Services offered • Type(s) of cargo handled (directly or through tenants) • Risk management approach • Workforce and workplace practices • Contractual terms • Loss history • Geographic location(s) and legal jurisdiction • Covers required • Limits and deductibles • Risk engineering How do we assess a risk & what do we look for 19
- 20. © Zurich INTERNAL USE ONLY Zurich’s Appetite 20
- 21. © Zurich INTERNAL USE ONLY © Zurich Importance of Risk Engineering Amos Ang – Risk Engineering Manager Zurich Resilience Solutions
- 22. © Zurich INTERNAL USE ONLY •
- 23. © Zurich INTERNAL USE ONLY • Super Typhoon Maemi 2003 lashed SE coast of Korea. • Killed 62 & missing person 25 • Resulted claim into Millions with Operation destruction Typhoon Destruction Real Case 1 23
- 24. © Zurich INTERNAL USE ONLY • July 2014 - Tilbury Docks Grain Terminal in Essex, English • Originated from loading conveyor belt. • No injuries – Terminal remain operational Fire to Grain Terminal Real Case 2 24
- 25. © Zurich INTERNAL USE ONLY • On 03rd June in Kaohsiung, Taiwan Pier 70 • MV ‘OOCL Durban’ struck a Quay Crane • The claims are set to significant as the crane valued at tens of millions of US dollars • It will also result in delays to container trade • This incident occurred not long after the Ever Given grounded and blocked the Suez Canal. Impact damage by vessel going alongside Real Case 3 25
- 26. © Zurich INTERNAL USE ONLY What constitutes a Liability to Port & Terminal Operator? 26 Cargo Liability Damage to Vessel ❑ Third party property damage ❑ Error in documentation ❑ Fine and Penalties ❑ Third party injuries ❑ Pollution
- 27. © Zurich INTERNAL USE ONLY Your understanding 27 Q: Do you think any liability attach to the Port & Terminal? A: Yes and No YES • If the port & terminal provide the lashing stevedoring service • Then, if it evident due to poor or insufficient lashings then there is liability attached NO • If the port & terminal do not provide any lashing service • Or the port & terminal can clearly quantify that even they provide the service with the ship’s crew duly to check before commence of the voyage then they may not to be held liable subject proven otherwise.
- 28. © Zurich INTERNAL USE ONLY • Allow the stakeholders the assured (customer), broker, insurers, reinsurers etc. to better understand the risk • On areas like Operations, Safety, Security, Maintenance, Subcontracting etc. • Evaluate the Risk, Hazard, Exposure and Control • Apply the insurers risk factors to assess the risk • Any recommendations raised will help the prevent a potential risk turn into a loss • Have a full concise report in hand from an insurer’s RE • It helps to raise risk awareness • Adopt good practices that meet the international standard • Benchmarking among the peers • In short, such risk assessment is just like your personal health check Why we need risk assessment survey 28
- 29. © Zurich INTERNAL USE ONLY Climate change & natural hazard solutions Add-on assessments (e.g. Supply Chain /Cyber/ ZRS Engage) ZRS PT360 A holistic risk management product for Ports and Terminals Port and Terminal Liability Assessment Property and fire risk assessment Nautical services Maintenance Contract management Cargo handling Natural hazards Contractors' management Security Property fire Road & rail infrastructures Health & safety Management & leadership Business interruption Environmental exposures & Controls Ship-to-shore operations
- 30. © Zurich INTERNAL USE ONLY 30 Thank you
- 31. © Zurich INTERNAL USE ONLY © Zurich End of Presentation Port & Terminal Risk – Marine Liability Zurich Insurance Company Ltd