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. (a) Except as provided in subdivision (c), the rates and
charges for pilotage services shall not include the cost of primary
marine insurance insuring a pilot, an organization of pilots, or
their officers or employees, from liability arising from negligence
or errors in judgment in connection with the provision of pilotage
service by pilots, organizations of pilots, or their officers or
employees.
(b) A pilot who holds a state license for the Bays of San
Francisco, San Pablo, and Suisun shall arrange to have available,
upon advance written notice, trip insurance, with coverage limits of
thirty-six million dollars ($36,000,000), naming as insureds the
pilot, any organization of pilots to which the pilot belongs, and
their officers and employees, and insuring the named insureds against
any civil claim, demand, suit, or action by whomsoever asserted,
arising out of, or relating to, directly or indirectly, acts or
omissions of the insureds in connection with the provision of
pilotage service, except willful misconduct.
(c) Every vessel, owner, operator, or demise or bareboat charterer
hiring a pilot with a state license for the Bays of San Francisco,
San Pablo, and Suisun shall either defend, indemnify, and hold
harmless pilots pursuant to paragraph (1), or alternatively, notify
pilots of an intent to pay for trip insurance pursuant to paragraph
(2). If a vessel or its owner, operator, or demise or bareboat
charterer does not provide written notice pursuant to paragraph (2)
of an intent to exercise the trip insurance option, then the vessel
and its owner, operator, and demise or bareboat charterer will be
deemed to have elected the obligation to defend, indemnify, and hold
harmless pilots pursuant to paragraph (1).
(1) (A) Except for a vessel electing trip insurance pursuant to
paragraph (2), a vessel subject to this subdivision, and its owner,
operator, demise or bareboat charterer, and agent shall not assert
any claim, demand, suit, or action against the pilot, any
organization of pilots to which the pilot belongs, and their officers
and employees, for damages, including any rights over, arising out
of, or connected with, directly or indirectly, any damage, loss, or
expense sustained by the vessel, its owners, agents, demise or
bareboat charterers, operators, or crew, or by any third parties,
even if the damage results, in whole, or in part, from any act,
omission, or negligence of the pilot, any organization of pilots to
which the pilot belongs, and their officers and employees.
(B) A vessel subject to this paragraph and its owner, operator,
and demise or bareboat charterer shall defend, indemnify, and hold
harmless the pilot, any organization of pilots to which the pilot
belongs, and their officers and employees, with respect to liability
arising from any claim, suit, or action, by whomsoever asserted,
resulting in whole, or in part, from any act, omission, or negligence
of the pilot, any organization of pilots to which the pilot belongs,
and their officers and employees. The obligation to indemnify under
this paragraph shall not apply to the extent that it causes the
amount recoverable from a vessel, its owner, operator, or demise or
bareboat charterer to exceed the limits of liability to which it is
entitled under any bill of lading, charter party, contract of
affreightment, or provision of law.
(C) The prohibition on claims by vessels, owners, operators,
demise or bareboat charterers, and agents imposed by subparagraph (A)
and the obligation to defend, indemnify, and hold harmless the pilot
imposed by subparagraph (B) shall not apply in cases of willful
misconduct by a pilot, any organization of pilots to which the pilot
belongs, and their officers and employees.
(D) A pilot who is the prevailing party shall be awarded attorney'
s fees and costs incurred in any action to enforce a right to
indemnification provided pursuant to this subdivision.
(2) In lieu of paragraph (1), a vessel subject to this subdivision
and its owner, operator, demise or bareboat charterer, and agent may
elect to notify the pilot, or the organization of pilots to which
the pilot belongs, of intent to pay for trip insurance, as described
in subdivision (b). If notice of this election is received, in
writing, by the pilot, or the organization of pilots to which the
pilot belongs, at least 24 hours prior to the time pilotage services
are requested, the vessel, and its owner, operator, demise or
bareboat charterer, and agent are not subject to the requirements of
paragraph (1). The pilot shall take all steps necessary to have trip
insurance coverage in place during the vessel movement for which it
is requested. The pilot shall assess to the vessel the premium for
the trip insurance at the pilot's cost, in addition to any other
applicable rates and charges for the pilotage services provided.
(d) Nothing in this section is intended to limit, alter, or
diminish the liability of a vessel, owner, operator, or demise or
bareboat charterer to any person who sustains loss or damage.