
Charterers’ Liability Insurance
As a charterer you face many diverse exposures which require careful thought in order to properly align your liability cover with your risk appetite.
For those advising you, it requires a knowledge and understanding of your business dynamic; an appreciation of how the legislative and economic environment impacts that exposure; an awareness of potential risks linked to the credit worthiness of your trading partners; an understanding of jurisdictional peculiarities connected with your trades, including any custom of the trade; and an appreciation of the bargaining parity between you and your commercial counterparts that impact the ability to achieve a balanced contractual allocations of risk.
Our team, with its experience in placing and servicing charterers’ risks globally across wet and dry trades, including offshore, combined with our understanding of the products available, is a guarantee that you will have Appropriate cover, aligned to risk appetite, at the most competitive price backed up by a respected service team capable of providing full claims advice and contractual support.
Typical examples of Charterers’ Risks
• Liability for Loss of or Damage to Cargo
• Damage to Hull Liabilities
• Liability for Death and Personal Injury
• Oil Pollution Liabilities
• Wreck Removal Liabilities
• Fines
• Legal Disputes (FD&D)
• Loss of bunkers
Liability for Loss or Damage to Cargo (i.e. P&I type risks)
• Depends upon the terms of the Charter party.
• Time or Voyage Charterers may incur liability for loss or damage to cargo caused by stevedores who are deemed to be the servants of the charterer.
• The NYPE Charter party form will normally contain Inter Club Agreement prescribe apportionment of cargo liability.
• Voyage Charters “FIOS” (free in / out stowed) or “FIOST” (free in/out trimmed) may result in charterer being found liable for loss or damage to cargo during cargo handling operations.
Damage to Hull Liabilities(i.e. DTH risks)
• Caused during the loading or discharging of cargo by stevedores and the like.
• Caused as a result of cargo shifting during voyage due to inadequate or incorrect stowage by stevedores employed by the charterer.
• Due to unsafe port or berth.
• Damage to engines if caused by poor quality bunkers supplied by the charterer.
Examples of Charterers’ FD&D Risks
Covering legal costs and expenses for disputes in connection with:
• Charter party, bill of lading, contract of affreightment, disputes in relation to hire, offshore, set off freight, dead freight, laytime, demurrage, despatch, speed performance, description of vessel and/or damages for detention
• General and/or particular average contributions
• Charges, disbursements and the like from agents, stevedores etc. Typical examples of risks that are not automatically covered under a Standard Charterers’ Liability Policy
• Physical loss of Charterers’ Bunkers.
• Charterers’ liability for pollution in his capacity as cargo owner.
• Freight at Risk.
• Charterers’ P&I liability and DTH liability caused by War Risks.
• Trade Disruption due to delay.
• Liability arising from breach of or deviation under the Contract of Carriage such as cargo carried on deck against under deck BOL’s.
Typical examples of delay (or TDI) issues that are not covered under a standard Charterers’ Liability policy
• Strike, lock-out, stoppage or restraint of labour.
• Rebellion, riots, civil commotions, political protests,action by environmental objectors.
• Fire, explosion or mechanical breakdown on land
• Earthquake, volcanic eruption, heave, landslide or subsidence.
• Loss or damage to vehicles, vessels or aircraft carrying or transhipping cargo or spare parts to or from an insured vessel.
• Closure of a port, berth or sea lane as a result of an order made by an authority.
• Physical obstructions in any port, berth, sea lane or navigable waterway for any abnormal reasons.
• Imposition of quarantine upon an insured ship.
• Stowaways.
• Storm, tempest, flood, sandstorm, snow, ice, fog or lightning.
