Nowadays, some vessel owners elect to outsource partly or wholly management functions of their vessels. Such managers have a potential exposure against owners, including liabilities arising from negligent acts or omissions in performing their duties under standard management contracts, such as the various editions of Bimco's Shipman or Crewman. In this context, it is noted that cover may be provided to managers for third party legal liability and claims expenses to investigate, minimize or defend a claim. Here below you shall find brief examples from A) to D), where underwriters have responded positively to claims;
A) situations of failure to maintain the ship at the contractually agreed condition, where extra costs might be incurred for reinstating her to an acceptable standard or, even worse, in the event the failure results in a detention and subsequent off-hire losses;
B) error in fixing a charterparty of a ship flying a Cyprus flag and subsequent failure to discharge in Turkey;
C) negligence in failing to arrange adequate insurances for the vessel;
D) Supply of crew not being certified to perform his or her duties, which ultimately led to detentions and delays.