INSURANCEMarine Insurance “Human Factor”& theBY BRIAN BRATAGER, SECOND VICE PRESIDENT, TRAVELERS OCEAN MARINEnsurance underwriters of diversi- es. We are all fallible and prone to er- insurance costs most effectively. retaining crew is one of the more expen-? ed maritime exposures see a wide ror. It is often easier and more tangible Underwriters typically see some com- sive and time-consuming aspects of any variety of approaches taken by to focus on risk management priorities, mon recurring themes in operations that type of vessel operation – and a process Ivessel operators to manage human ranging from equipment maintenance have built and continue to improve upon that all companies would prefer to repeat error to control risk. They have found and improvements to physical assets. best practices in human factor manage- as infrequently as possible. In today’s through experience that the majority of Compared to the bene? ts of ? eet man- ment. The areas identi? ed below are environment, there is ? erce competition hull and liability claims can be traced to agement, the time and money spent on representative of observed practices of for both licensed and unlicensed crew-a breakdown in preparedness and deci- promoting a culture of safety, improving some of the best operators in class – op- members. Vessel operators who are able sion-making. Maritime operators that emergency preparedness and creating erators who have successfully managed to recruit good crewmembers and man-set a high bar and build well-constructed a thorough training approach to opera- human element risk and have bene? ted age them within well-designed programs methods of managing the human ele- tional procedures and incident manage- in the form of reducing claims and insur- can reduce their exposures and also im-ment of risk – and those that monitor it ment might be viewed as less impactful. ance costs. prove retention of their most valued em-closely – can save signi? cantly on insur- However, real world experience tells us ployees. While each individual operator ance costs due to lower frequency and otherwise. Operators who understand Best-in-Class Practices determines the particulars of salary, rota-severity of claim activity. the human factor and focus on practices All best-in-class practices are inter- tion and bene? ts, it is not just a matter Managing the human factor is the most aimed at building a culture of safety are related to some extent, but begin with of paying enough or offering the best dif? cult of all risk management process- ultimately the ones who control risk and personnel recruitment. Identifying and bene? ts. There are other traits that are commonly found to be present in most superior operations.Key Programs and ConsiderationsAbove all else, great operators main-tain a relentless focus on one key issue: safety. Building a culture based on safety is a substantial commitment. It requires much more than distributing pamphlets and paperwork. In a perfect world, all commercial and passenger vessels would have state-of-the-art safety and risk con-trol programs that begin with hiring practices and never really end – because safety innovations are constant. Opera-tors who promote a culture of safety tend to follow these basic principles: Mike Foster Vice President, General Manager• Demonstrate consistent manage-ment support for and engagement mfoster@senescomarine.comwith each vessel’s captain and crew.(401) 226-1042 cell• Establish and carry out routine com-Kyryll Karayev P.E. munications and meetings with cap-tains and crew to maintain a current Repair Yard Manager, Dry Dock Master understanding of vessel and crew kkarayev@senescomarine.comcondition.(401) 639-9325 cell• Provide incentives to captains and crew to be active participants in the 44 Maritime Reporter & Engineering News • NOVEMBER 2014MR #11 (42-49).indd 44 10/28/2014 10:39:52 AM