If I’m a state pilot with limited liability, why should I consider purchasing a license insurance policy?

While there is frequently a limitation on the fine that a pilot may be required to pay as the result of a marine casualty/incident, this will not prevent them from being named in a civil suit. If the pilot is involved in a major casualty involving loss of life, significant pollution, or significant monetary damages, it is likely that they will be brought in on the subsequent lawsuit(s) and will be required to provide a defense. We experienced this recently when one of our policyholders was named in a suit brought forth by the vessel owner’s P&I club after a casualty. The judge ultimately removed the individual from the suit, but not before several hundred thousand dollars in defense costs were incurred, all of which was covered by the “Civil Defense” section of their license insurance policy. In the unlikely event that the respective state’s limitation is broken, the “Civil Liability” section of the policy (if purchased as an optional coverage) would respond. Loss of Income coverage is also available in the event the policyholder’s pilotage credential is suspended or revoked. For any claim where representation is required, we would look to use a local admiralty attorney with expertise in the applicable state’s pilotage law, and, at the request of the pilot association, we frequently work with attorneys that they have an existing relationship with.