This week marks 107 years since the RMS Titanic sank in freezing waters, reminding today’s shippers that low risk does not equal no danger. Even the most advanced ships are susceptible to disaster. The best approach to prepare for unforeseen losses is to have appropriate insurance.
On April 14, 1912, just before midnight, the Titanic collided with an iceberg and sank to the bottom of the Atlantic, killing over 70% of the passengers and crew on board. Many people are unaware that the ship also carried millions of dollars in mail, packages, and cargo, estimated to be worth $9.5 million today. High-end businesses like as B. Altman & Co., Tiffany & Co., and sporting and leather goods merchant A.G Spalding & Bro. were among the recipients of the products.
The Titanic was built by the White Star Line and represented state-of-the-art shipbuilding for the time, so it’s no surprise that people had such complete faith in her seaworthiness. Indeed, a White Star Line employee is alleged to have famously declared, “Not even God could sink this ship.”
How many businesses today are sure that their goods and cargo will arrive on time and without incident? In the case of a calamity, how many people are prepared? The Titanic’s story is a fascinating tale of enormous expectations and danger, as well as a tale of painful lessons learnt.
The acronym RMS Titanic stands for the Royal Mail Ship Titanic “Titanic, the Royal Mail Ship.” This ship was more than just a luxury cruise liner. Titanic was also allowed to transport mail. 3,500 bags of mail and 750 parcels heading for the United States were among the shipment.
Five grand pianos, 1,500 bottles of wine, 800 cigars, and 50 cases of toothpaste were among the items heading to America. Every item had worth to shippers and recipients, from diamond necklaces to marmalade machines and party costumes.
The Titanic was insured for $133 million in today’s money by the White Star Line. Following the collision, cargo insurance policies covered nearly all of the $9.42 million in property claims. Insurance companies were able to step in and absorb the losses, just as they do now.
There was cargo insurance before there was motor insurance. William Carter, a first-class passenger, and his family escaped the Titanic tragedy, but his car, a Renault Type CB Coupe de Ville, did not. Automobile insurance is necessary for car owners today to protect loss and damage, but there was no such product in 1912. Carter filed a $5,000 vehicle claim against the White Star Line, which was likely the first of its kind. In 2003, a replica of the vehicle sold for $269,500 at auction.
Survivors filed insurance claims for everything from the most valuable cargo to common household items. A hand-bound book of poetry encrusted with 1,500 precious diamonds that took two years to manufacture was among the most renowned artifacts lost at sea. Sotheby’s auction company was shipping it to an American buyer. The owners of the masterwork by Blondel filed a claim for $100,000 against the White Star Line.
Insurance claims were not limited to the rich and famous’s high-priced possessions. Passengers in third class filed claims for the loss of clothing, bags, and other documents that they needed to conduct business or establish a new life in America.
After the disaster, filing claims was an emotional but rather painless process. The New York Times stated two weeks after the tragedy, on April 28, 1912, that insurance had covered practically all claims. Compare this to the Costa Concordia accident in 2012, when a cruise ship struck an undersea rock and capsized off the coast of Italy, nearly a century later. Despite the fact that the majority of the Concordia passengers were rescued, insurance experts were still calculating the total damages weeks after the accident. The overall insurance loss from the Costa Concordia’s disaster and salvage was estimated at $2 billion in 2014.
The Titanic accident was the result of a perfect storm of bad luck that ended in tragedy. Even now, we are enthralled by it. Despite the fact that many people believed the ship was indestructible, the incident shows that even a state-of-the-art ship might face unexpected calamity. Fortunately, maritime rules and shipbuilding procedures were tightened as a result of the disaster. All ships were required to operate wirelessly 24 hours a day, seven days a week, and GPS and tracking systems became increasingly sophisticated.
The legendary Titanic serves as a reminder that even good ships and cargo can be destroyed. Make sure that doesn’t happen to you. Take precautions to reduce your risk.
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Who ensured the Titanic?
On the 9th of January, broker Willis Faber & Co arrived to Lloyd’s underwriting room on behalf of the White Star Line to insure the Titanic and her sister ship, the Olympic.
It was regarded as a prestige risk, with hull insurance costing £1 million (about £95 million in today’s money). Several Lloyd’s syndicates signed the slip, with amounts ranging from £10,000 to £75,000 on the line. Willis was able to secure a favorable premium of £7,500 for this boldly ‘unsinkable’ vessel.
How much was the insurance payout for Titanic?
According to a contemporary story published in The Shore Press, life and accident insurance firms lost $3,464,111 when the ‘unsinkable’ Titanic hit an iceberg and sank in 1912. The disaster resulted in some of the world’s greatest insurance claims, with business magnate John B.
Did Titanic survivors get compensation?
White Star and all of the United States plaintiffs didn’t reach an agreement until July 1916, more than four years after the Titanic sank. White Star agreed to pay $665,000 for each life lost on the Titanic, or around $430 per person.
Did anyone sue the Titanic?
Today marks the 104th anniversary of the Titanic accident, in case you didn’t know. A comment was left on one of the social media posts I saw about the subject “There would be so many lawsuits if the Titanic accident happened now.” While this comment is meant to be a critique of today’s political climate, “It demonstrates a (common) misunderstanding of the civil justice system when it says “litigious society.” We wouldn’t need to file lawsuits if everyone admitted their faults, played fairly, and paid for the harm they caused. Regrettably, that is not how the world operates. A lawsuit is frequently the only method to make a negligent firm pay for the harm they’ve caused.
Does it surprise you to discover that several lawsuits were filed in the aftermath of the RMS Titanic disaster? Survivors and relatives of those who died filed a levy of claims against the transportation business that sold tickets to the giant ship’s first journey after the Titanic sank, resulting in the loss of life and property.
Anna Sofia Sjöblom, a passenger who was lucky to survive after being flung over the deck and into one of the lifeboats as the ship sank, was one of the claims. Due to sea sickness, she had spent the majority of her time on the ship in her bunk. Unfortunately, one of the crew members leaped onto her lifeboat and crashed on her head, injuring her skull and spine severely.
$16 million in claims.
Survivors (and the relatives of those murdered) filed claims totaling approximately $16 million (though some stories state $13 million). The shipping corporation that operated the Titanic at the time, on the other hand, disputed the claims, claiming that a clause in the passenger tickets relieved them of liability. They also argued that the events leading up to the disaster were unforeseen. Finally, it was stated that the judicial system should include factors like as visibility, warning telegrams, and whether or not the Titanic’s safe speed limitations were violated.
On December 17th, 1915, the plaintiffs and defendant reached an agreement for a total value of $664,000. Given that it was designed to be split among all survivors and relatives of those died in the accident, this wasn’t a large sum of money. The sum paid out was less than a quarter of what survivors and families of deceased individuals had requested at the outset.
The legal system then and now.
This case demonstrates that victims had to struggle for compensation from firms who were held accountable for such a tragedy even 100 years ago. The legal dispute was fought in the United States Supreme Court, while the main trial was held in the United Kingdom. Damage caps were declared in favor of White Star Line (the transportation business) by the courts, and the issue was subsequently resolved out of court. Given the absence of evidence and questionable eyewitness reports at the time, I believe claimants would have had a greater chance of retrieving what they were entitled in today’s legal arena.
Was Olympic the same as Titanic?
Olympic, also known as the Royal Mail Ship (RMS) Olympic, was a British luxury liner and sister ship to the Titanic and the Britannic. From 1911 to 1935, it was in use.
Is there an unsinkable ship?
The truth is that there is no such thing as an unsinkable ship, as comfortable as it may sound. Regardless of how advanced the safety mechanisms are or how large the ship is, all ships are vulnerable in the wrong circumstances.
How cold was the water when the Titanic sank?
On April 14, 1912, the largest, most luxurious British passenger ship in history collided with a massive iceberg and sank, killing 1,500 passengers. What a tragic tale! When the iceberg hit, many people were sleeping. Approximately 5,000 miles south of the Arctic Circle, the iceberg was discovered.
What occurred after that? The Titanic was travelling through an area known for big icebergs, and the ship’s crew members were well aware of the predicament. The ship’s crew radioed for assistance right soon, but they were only answered by RMS Carpathia, which was 58 miles (93.3 kilometers) away, meaning it would take them four hours to get to the spot. The Titanic was sinking quickly, and it was evident that many people would perish on board within two hours.
The sinking ship in the North Atlantic claimed the lives of 1,500 passengers. Only 700 passengers and crew members, the majority of whom were women and children, survived. Women and children were able to board the lifeboats regardless of their class. Priority was given to even third-class children and females.
After the Titanic sank to the bottom of the ocean, the Carpathia arrived over two hours late. They boarded the ship with 700 survivors from the lifeboats. When the Titanic sank, the Californian, a Leyland liner, was only 20 miles (32.2 kilometers) away. When the Titanic made its distress call, the radio operator of the Leyland liner Californian was off duty, and they were unable to hear it. Many people would have lived if they had arrived on time.
Was the Olympic bigger than the Titanic?
Olympic, like Titanic, was planned by Thomas Andrews and built side by side with Titanic in Harland & Wolff’s shipyards’ massive Gantries. Olympic was constructed and launched on September 20, 1910, nearly precisely a year before her infamous sister ship, and she had a successful maiden voyage on June 14, 1911.
Despite all of the fuss surrounding Titanic’s superiority over other liners of the time, the Olympic and Titanic are strikingly identical.
The Titanic was only a few inches longer than the Olympic, according to best estimations, but it was almost 1000 tons heavier in gross tonnage than the Olympic.
Who was the richest survivor on the Titanic?
The wealthiest passenger on the Titanic was John Jacob Astor. With a personal fortune of almost $150 million, he was the leader of the Astor family. He was born on July 13, 1864, to William Astor and was schooled at St. Paul’s School in Concord before attending Harvard.