The ABC of Charterers Liability
Charterers of seagoing vessels assume in their charter contracts contractual and legal liabilities. When sub chartering a vessel the charterer may even position themselves as ship owner in the contractual chain and can be exposed to similar risks as a ship owner.
Under Time and Voyage charter contracts, charterers can be held liable for damage to hull during loading and unloading of the ship; an unsafe port / berth situation in (the approach of) a port; damage to hull caused by the cargo or by off spec bunkers.
There may be a liability exposure for cargo, especially under the NYPE Inter Club Agreement: Charterers can be held liable and have to put up security for shortage or damage to cargo by e.g. pilferage, stowage or mishandling.
And there is a potential risk to third parties like personal injury, wreck removal, general average, etc. Nearly every chartering of a vessel starts with a sales contract on goods. A charterer can be either a commodity trader or im-/exporter, or a ship operator, a liner service or a freight forwarding company. But in many occasions the charterer is in the middle of a string of contracts which means that there is a liability exposure both ways. Charterers Liability cover protects the charterer both ways against these liabilities.
For some charterers, carrying their own goods, there is the potential risk that the goods itself are reason for a liability claim and brought to charterers in their identity as Cargo Owner. E.g. pollution.
Cargo Owners Legal Liability cover protects cargo Owners against these exposures.
For Legal advice and Disputes under the Charter-Party, your legal expenses can be covered under our Defence (FDD) cover.
Piracy Loss of Hire
|Policy wording 2010||Policy wording 2011||Policy wording 2012|
Policy Wording 2013