Standard armed guards contract nears, to stress need for more insurance

COPENHAGEN's Baltic and International Maritime Council (BIMCO) is working on a draft of a restrictive standard contract for the employment of shipboard armed guards, reports London's TankerOperator. The contract will require security contractors follow the the UN's International Maritime Organisation's (IMO) guidelines for owners on the use of shipboard armed guards under MSC Circular 1405. What will be demanded is that security contractors pay for much more liability insurance. While the contract will also deal with operational aspects, liability insurance is of prime importance, said the report. BIMCO has given this project the highest priority so that the standard contract can be published as soon as possible - most likely within the next two months, the organisation said. The new contract is being drafted by a team of experts from shipowners, lawyers and underwriters, plus with the assistance of the International Group of P&I Clubs to avoid fears of second-rate security firms taking advantage of the piracy situation off Somalia. BIMCO is an independent international shipping trade association, claiming a worldwide membership of 2,720, including shipowners, managers, brokers, agents and others involved in the shipping industry. It has observer status with a number of United Nations organisations.