Emergency Contact Towage risks and cover in Latin America Home Latest updates News Towage risks and cover in Latin America 19 Jan 2018 Download Sign up for alerts For almost fifty years, the Club has insured a large number of tugs operating in Latin America, performing a variety of towage tasks including harbour towage (assisting in the berthing and un-berthing of other vessels), coastal towage, and towage of barge convoys through inland waterways. Members operating tugs in Latin America do so under a variety of contract forms and often in the absence of any formal contract, meaning there is no contractual allocation of risk between tug and tow. In accordance with most jurisdictions around the world tug owners operate under contractual terms that incorporate favourable indemnities so the servant of the hirer is not liable for: Loss of or damage to the towed vessel or object or any cargo upon it. Wreck removal of the towed vessel or object or any cargo upon it. Death of or injury to the crew or passengers on board the towed vessel. Claims brought by third parties for damage or injury caused by contact with the towed vessel or object. These terms are widely accepted because they achieve a fair allocation of risk. Tug owners often provide customary towage services to much larger vessels that are worth many times the value of the tug, can be laden with millions of dollars worth of cargo and have many crew or passengers on board. If both parties were to bear the risk of damage or injury to the other, then the tug owner would face a disproportionate exposure. It is for this reason that industry standard towage terms incorporate ‘knock for knock’ allocations of risk, meaning that each party bears their own losses in respect of both property and people. UK Standard Towage Conditions go further to indemnify the tug operator against all risks except where personal failure of the tug owner can be proven. Given the worldwide prevalence of such arrangements, companies operating