Class A

Charterers Liability

Covers Charterers Liability including Damage to Hull under a combined single limit.
Behind nearly every vessel charter is a contract to ship goods. A charterer can be an importer or exporter, a commodity trader or a ship operator, a liner service or a freight forwarding company. On many occasions the charterer is involved in a string of contracts which means that there is a liability exposure to owners, sub-charters and/or cargo interests.

Key features of our covers

Damage to Hull

Charterers can be (held) liable for Damage to Hull following an incident. E.g. a stevedore damage during loading or discharging; a grounding in an unsafe port, or any other accident where a port or berth becomes unsafe; a fire; a damage to the vessel caused by the cargo or stowage; etc. The Charterer is covered for his liability to pay damages to the Owner or Disponent Owner of the insured ship in respect of loss of or damage to the vessel. The cover under this section has been extended to include a Charterer’s liability for the payment of hire, demurrage or damages for loss of use as a result of such a loss of or damage to the vessel.

Cargo Liability

We cover the Charterer against the legal liability for physical loss of or physical damage to or shortage of cargo and other responsibility in respect of cargo intended to be or being or having been carried in the insured ship. This includes liabilities under the Interclub Agreement.

P&I risks

The Charterer assumes similar P&I risks as a shipowner and our policy covers the charterer for his legal liabilities to indemnify the Owner or Disponent Owner of the insured ship in respect of P&I risks such as:

Expenses

Sue and Labour covers the extraordinary costs and expenses, reasonably incurred for the purpose of avoiding or minimising any liability or expenditure.

Removal and Replacement of Bunkers covers the extraordinary costs and expenses reasonably and necessarily incurred by the Charterer in order to avoid or minimize liability for physical damage to the ship or its engines

Fines covers liability for fines imposed by any court, tribunal, or authority of competent jurisdiction upon the Charterer

Stowaways covers legal liability to the Owner under a Charter Party for fines and other expenses incurred by that Owner as a consequence of stowaways