TT CLUB WARNS THAT PORT OPERATORS RISK INADEQUATE COVER

TT CLUB WARNS THAT PORT OPERATORS RISK INADEQUATE COVER    Port operators face significant liability risk unless they have a structured port and terminals liability policy written with specific exposures to risk in mind, warned Dan Negron, vice president, Through Transport Mutual Services (Americas).
   “The greater the number of services offered by a port, the greater the operator’s exposure to risk,” Negron said.
   “The devastation caused in New York in the September 11 terrorists attacks have inevitably led to repercussions in the insurance markets,” he explained. “Reports from market analysts contain the sobering conclusion that reinsurance capacity will diminish significantly in the foreseeable future.
   “Consequently, many weaker insurers will either restrict their coverages, or consolidate with others. In simple terms, the average purchaser of insurance is likely to pay higher insurance premiums for similar or even lesser coverage. A purchaser with unique insurance needs, such as a port operator, may well be unable to obtain coverage at any price,” Negron said.
   “The contractual undertakings that ports and terminal operators effect with their premises providers, equipment providers and subcontractors will have a direct impact on the quantum of insurance they will be required to maintain. In no event will a liability policy indemnify a port operator for claims resulting from the improper actions of unrelated third parties, unless that cover is specifically endorsed onto the policy,” he explained.
   Port operators should try to obtain structured liability policies “written with specific exposures in mind,” Negron said.
   The TT Club provides varied insurance coverage for transportation providers, including transport subcontractors, freight forwarders, stevedores, and port and terminal operators worldwide.