Marine Surveyors Hit With $70,000 After Subcontractor Errors

A single technical error by an uninsured subcontractor has resulted in a $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.

“Surveyors rely on a wide range of technical data and much of it comes from third-party specialists who work on a subcontracted basis," said Mark Brattman, Claims Director at ITIC. "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