Main Risks for Charterers

Our Charterers’ Liability Insurance is designed to cover both the contractual and the legal liabilities that you may face as the charterer of a ship. This insurance can be divided into three main areas:

■ Liability to cargo – The insurance covers both loss of, and damage to, cargo resulting from bad stowage or mishandling, shortages as a result of theft or mismanagement, or non-delivery (through loss, arrival at the wrong port, etc.)

■ Liability to the vessel – As a charterer, you may be held liable for any damage to the vessel occurring during the contracted period. Damage to the vessel may include damage caused by stevedores, by the cargo carried, by the supply of defective fuel oil, or by an unsafe berth. If the vessel has to be repaired, you may also be liable for compensating any time lost as a result

■ Costs – The insurance covers any costs incurred by mounting a defense against a legal liability claim – typically including survey expenses, lawyers’ fees, formal investigations and ‘sue and labor’ costs. You are also covered against unwarranted liability claims in cases where you are not liable, but a party chooses to pursue a claim independently

The cover also provided in the following cases:

■ Death and personal injury
■ Damage incurred by a third party
■ Collision
■ Wreck removal
■ Quarantine costs
■ Pollution
■ Fine