A marine survey claim involving faulty third-party data has led to a US$70,000 settlement and prompted the International Transport Intermediaries Club (ITIC) to warn surveyors about the insurance and liability exposure that arises when subcontractors provide critical calculations without contractual safeguards.
The case began when a surveyor was appointed to determine whether a commercial fishing vessel met maritime authority requirements. To complete the assessment, the surveyor relied on a naval architect for freeboard calculations. The figures supplied were incorrect, leading the surveyor to conclude that the vessel's stability records were inaccurate and required a full re-survey before entering service.
However, the documentation turned out to be sound and the vessel could have proceeded without delay. However, the buyer, acting on the surveyor's recommendation, commissioned a second survey and missed three scheduled fishing trips during the wait. This created a chain of financial consequences that extended beyond technical correction and directly into recoverable loss.
ITIC reviewed whether lost earnings from the cancelled voyages could be included in the claim, noting that in some circumstances courts may consider loss of profit foreseeable. The complexity deepened when it was revealed that the naval architect was both uninsured and working without a formal contract, blocking the surveyor from seeking contribution or indemnity.
With no contractual protection to restrict liability or exclude consequential loss, the responsibility sat primarily with the surveyor.
The claim concluded with a US$70,000 settlement covering the cost of the unnecessary second survey and an agreed portion of lost income.
The case highlights the role of professional indemnity insurance as a financial safety net for surveyors facing claims related to negligence or technical error.
Without clear contract terms, claims can quickly move beyond direct damage into areas such as operational disruption and loss of earnings. In recent years, marine liability underwriters have reported a rise in claims linked to data errors, misinterpretation of technical specifications and disputes over subcontractor responsibility.
ITIC has updated its standard trading conditions for surveyors and consultants, supporting members in integrating liability caps, consequential loss exclusions and subcontractor responsibility wording into agreements.
The organisation also indicated that written terms, proof of subcontractor insurance and careful wording around reliance on third-party information remain key measures for reducing uninsured exposure and preventing similar disputes.
