‘Be aware of contractual liabilities’

JOY ORLEK READ THE small print and understand your contractual liabilities. This advice is particularly relevant in the relationship between cargo owner and road haulier where it’s critical that all parties understand their liability limits. According to Garth Huggins, director of cargo surveyors Rennie Murray & Co, there’s a misguided notion among many cargo owners that they’re fully covered through the transport operator’s insurance in case of a claim. A number of transport operators, on the other hand, often severely limit their liability in their contracts of carriage. Clearly a recipe for disaster. At the other extreme, clients may use their influence to compel transporters to accept full risk liability. “Currently there are attempts being made to put legislation in place to regulate the liability of road carriers,” says Huggins. And the liability issue becomes more complex and dangerous when subcontractors are used down the line and the contract becomes even more obscure. His best advice is to read the small print carefully, and if you’re unsure, go to a broker. But taking this one step further, a proactive approach can make all the difference Rennie Murray provides marine and cargo surveying and related services to the local and international marine insurance markets, shipping lines and agents, freight forwarders and maritime attorneys in the form of pro-active risk surveying. Underwriters often demand that preventative measures, particularly for high value cargoes carried over long distances, are in place before an insurance contract is agreed upon and this is an area in which Rennie Murray has the expertise to intervene.