§ 441 Pilotage Insurance Exclusion

• •Pilot service fees do not include negligence insurance.
• •The pilot, their employer, or employees can be liable for mistakes.
• •Separate insurance must be purchased if coverage is needed.

A ship needs a pilot to guide it into a harbor. The pilot makes a mistake and the ship crashes, causing damage. The ship owner paid the pilot fee, but the insurance bought for the pilot does not cover the crash because the law says the fee doesn’t include insurance for negligence.

Because the pilot’s fee doesn’t include insurance for negligence, the ship owner must find separate coverage or pay any damages themselves. The pilot or their employer could be held responsible for the crash.