[08 December 2025] – [London] – A single technical error by an
uninsured subcontractor has resulted in a US$70,000 settlement and
prompted International Transport Intermediaries Club (ITIC) to warn ship
surveyors of the financial exposure they face when relying on
third-party data without contractual protection.
The dispute arose after a marine surveyor was appointed by a prospective
buyer to confirm that a commercial fishing vessel met the requirements
of the relevant maritime safety authority. As part of the survey, the
surveyor instructed a third-party naval architect to provide technical
information needed to calculate the ship’s freeboard. The data
supplied was wrong, which led the surveyor to report the wrong freeboard
and conclude that the vessel’s recorded lightweight in the existing
stability book was inaccurate.
Mark Brattman, Claims Director at ITIC, said: _“Surveyors rely on a
wide range of technical data and much of it comes from third-party
specialists who work on a subcontracted basis. When that information is
wrong, the surveyor may be left carrying the liability, particularly
where the subcontractor has no insurance of their own. This case shows
how quickly a simple error can escalate into a claim that includes
indirect losses.”_
As a result of the incorrect information, the surveyor advised the buyer
that the vessel required a full re-survey before it could enter service.
In reality, the stability documentation was accurate. The buyer
subsequently incurred the cost of the unnecessary second survey and
missed three fishing trips while awaiting clearance, leading to claims
for both the survey expense and the loss of income during the delay.
ITIC assessed whether earnings from those missed trips could be claimed
and considered the possibility that a court might decide the surveyor
was responsible for profit loss that could have been anticipated.
The situation was made more difficult by the fact that the naval
architect responsible for the incorrect data had no insurance and no
formal contract with the surveyor, leaving little chance of recovering
any contribution. The claim was eventually settled for US$70,000,
covering the cost of the second survey and an agreed amount of the lost
income.
_“Many standard trading conditions exclude liability for consequential
losses, such as loss of profits, but in this case, the surveyor was not
operating under any such terms. Surveyors should check the credentials
and insurance position of any subcontractors they work with and ensure
their own terms include a limit on liability, an exclusion for
consequential losses, and potentially an exclusion that states the
surveyor is not responsible for inaccuracies in third-party information
they have reasonably relied upon, all of which should be agreed in
writing. It is also important to take care when advising buyers about
follow-up surveys and the operational impact of those recommendations.
Clear documentation and robust contracts remain central to reducing the
risk of costly disputes,” _Brattman added.
ITIC has recently updated its recommended standard trading conditions
for surveyors and consultants [1] and can assist members in
incorporating these into their contractual arrangements.
About ITIC
International Transport Intermediaries Club (ITIC) is the world’s
leading provider of professional indemnity insurance to transport
professionals across the globe.
As a mutual insurer, it has 100 years of experience providing cover to
companies in the marine, naval architecture, aviation, offshore,
renewable and hydrographic industries. With 3,650 members in over 110
countries and a worldwide network of correspondents, ITIC is the
acknowledged leader in its field.
ITIC’s insurance has been developed primarily to cover claims of
negligence – errors or omissions. Cover can also extend to specialist
areas such as debt collection, loss of commission income, cash in
transit, and directors’ and officers’ insurance. ITIC’s wide
coverage also includes unique discretionary insurance that could support
claims not normally paid by other professional indemnity insurers.
ITIC is managed by Thomas Miller. More details about ITIC and the
services it offers can be found at www.itic-insure.com
