Ship manager’s liability for crew negligence

In this episode of ITIC Insight, Ayşegül Wallis, Account Executive at ITIC, spoke with Ester Toumpouris, Partner at the international legal and professional services firm Ince in Cyprus, regarding the BIMCO "Shipman" contract. Considering the BIMCO Shipman and Crewman contracts, Ester provides information regarding the manager's liability for crew negligence. The contract is widely used and also recommended by ITIC as a balanced contract between the interests of the manager and the shipowner. Ester gives insight into claims made against ship and crew managers that have arisen purely from the crew's negligence. However, Ester says, P&I or hull insurers should cover claims arising from crew negligence. They are not the responsibility of the supplier of the crew, namely the ship or crew manager. If an error (by a fully certified and qualified chief engineer) causes damage to a main engine, the claim should fall against the hull and machinery underwriters. The fact that the chief engineer made a mistake does not mean the ship or crew manager had been negligent. The manager is exempt from any crew negligence even if their actions were negligent unless the manager is negligent in supplying the crew.