Mark Brattman, Claims Director at ITIC. Image credit: ITIC

A marine surveyor has successfully defended a claim exceeding US$5 million following the loss of a yacht at sea after cargo insurers failed to commence legal proceedings within the required time limits, International Transport Intermediaries Club (ITIC) has highlighted in its most recent Claims Review.

The claim arose after a yacht being transported as cargo aboard a heavy-lift ship was lost overboard during heavy weather. Cargo insurers alleged that the yacht's securing arrangements were inadequate and sought to hold the surveyor responsible for the loss.

The surveyor had inspected the loading and securing arrangements before the voyage and issued a certificate confirming that the lashings and fastenings were satisfactory. The certificate also set out several ongoing requirements, including regular inspections and tightening of the lashings during the voyage, as well as avoiding severe weather where possible.

The claim was first presented nearly six years after the incident. ITIC assisted the surveyor in denying liability and defending the claim, providing approximately US$200,000 in legal costs to fund the defense.

Although the cargo insurers were granted an initial extension of time, they failed to commence proceedings before the extended limitation period expired. They subsequently attempted to pursue the claim in another jurisdiction with a longer limitation period, but proceedings were also commenced after that time limit had passed.

The courts upheld the surveyor's time-bar defense, bringing the matter to an end.

Mark Brattman, Claims Director at ITIC, commented: “A marine surveyor may only be involved in an operation for a short time, but the risk of a claim can remain for years. When something goes wrong, their work may come under scrutiny long after the assignment has ended. This is why limitation periods are an important defense even when a claim appears significant.

“This case shows why professional indemnity insurance is about more than paying compensation. Defending a claim can be expensive, even when the claim is unsuccessful. In this instance, legal costs alone amounted to over US$200,000.

“Surveyors need to be clear about the scope of their appointment, document any conditions or ongoing requirements and retain their records. When a claim arises years later, inspection reports, certificates and correspondence can make a significant difference to the defense.”

The case features in the October 2026 edition of ITIC's Claims Review, which examines claims involving marine professionals and what marine professionals can learn from them.