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Cover for Charterer's P&I Liabilities and Damage to Hull

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Cover for Charterer's P&I Liabilities and Damage to Hull June 2015 Charterer's Liability Cover for Charterer’s P&I Liabilities and Damage to Hull Why Buy? A person or a company acting as charterer of a ship assumes responsibilities broadly similar to those of an owner. The contracting parties - normally a cargo owner or sub- charterer - will view the charterer as the “owner” of the ship. The charterer also assumes liabilities towards the vessel owner, including damage inflicted on the ship. Description Charterers liability provides cover for accidents and claims from subcharterers, cargo owners, shipowners or other parties the charterer is liable shipowner, most jurisdictions allow a claimant to in both P&I matters such as cargo, crew, oil the freedom of choice, to sue either the charterer pollution and also damage to the ship, including or the owner. The charterparty will eventually accidents due to unsafe port or berth and bad determine, contractually, who should bear the bunkers. cost, but this may follow a long legal process. Most ships are chartered either on a Time Charterer’s Liability insurance is a fixed premium Charter or Voyage Charter contract. In both cases P&I cover for charterers. the charterer becomes liable as he occupies a Since claims between an owner and a position similar to that of an owner towards the charterer frequently concern hull damage the sub-contracting party (either a subcharterer or cover may also include Charterer’s Liability to cargo owner). His liabilities towards third parties Hull. Even if the contract is a Voyage Charter, are then broadly similar to those of a shipowner, where the shipowner may have an obligation including liabilities for cargo and oil pollution. to ensure named ports are safe for his ship, the Simultaneously, the charterer assumes charterparty may name a range of ports for liabilities towards the party he charters the ship discharge. from - the vessel owner or another charterer. If the loading or discharge port is unsafe, the Primarily, this type of liability relates to vessel charterer may have a liability to the shipowner, damage caused by, for instance, cargo-handling, should damage to the ship occur. Stevedore bad bunkers and unsafe port or berth. damage to vessels is commonplace when loading Charterers in any role, whether as voyage or discharging cargo. This is yet another typical charterers or time charterers, need cover for liability imposed on the charterer. this exposure. Even where the charterparty All charterers, regardless of position in the contractually imposes the liability on the “chartering chain”, require cover for both P&I ` P&I - Charterer's Liability Insurance www.swedishclub.com June 2015 liabilities and damage to hull. As soon there is a binding fixture, whether voyage or time charter, the charterer has an insurable exposure. Space Charter Insurance and Slot Charter Insurance are designed for situations where the charterer only charters a limited space or a number of slots on a vessel. Who can be covered ` Charterers Limits ` Max USD 750 million Deductibles ` To be agreed This note is a general description. For full conditions, premiums, subjects and warranties, please contact your team Underwriter. P&I - Charterer's Liability Insurance www.swedishclub.com.
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