Mainly I’m curious if the insurance of the ship or any other kind of insurance company will be involved + any other source that will pay for this.
Im totally aware that first an investigation must be completed to know the causes in order to determine liabilities and consequences. Hypothetical cases are welcome 🙂
In: Economics
I used to work in homeowner’s insurance. The process might be slightly different with ships, but I imagine it will be something very similar to this.
The ship/shipping company’s liability insurance will jump in immediately and pay for the damages. From there, that insurance company will do something called subrogation. This is a process where they essentially make a determination about who was really responsible for the loss.
Was it a pilot error? Was it a maintenance problem? Was it a manufacturer problem for an engine part? They will do their best to track down the origin of the problem, then they will contact whatever insurance company is responsible for the issue and expect them to pay them back (typically a lot of lawyers are involved in this).
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