Knock-for-knock clause

George Woods, of 4 Pump Court, asks how comprehensive is the TOWCON ‘knock-for-knock’ exclusion?

The BIMCO TOWCON standard form towage contract is widely used in the heavy transport industry. Clause 18 creates a ‘knock-for-knock’ scheme, whereby the tug and tow owner each agrees that ‘loss or damage of whatsoever nature, howsoever caused’ to or by its own vessel shall be for their own sole account, ‘whether or not the same is due to breach of contract, negligence or any otherfault.’