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Allocation of Risk in Tug and Tow – Contractual Insurance and Indemnity Clauses

Excerpt:

That 2003 case, Rough Bay Enterprises Ltd. v. Budden, was referred to in a recent court decision – not for its poetic merit – but on an insurance issue relating to another tug and tow casualty. The more recent decision, which is the subject of this article, is Lehigh Hanson Materials Limited v. the Ship “Sea Imp XI” and Catherwood Towing Ltd., decided on September 2, 2022. The case provides an example of how insurance and indemnity arrangements can be structured, and the issues that can arise when the terms are considered when a loss occurs.