Liability (P&I) Insurance
Cover under the Liability Class breaks down into three main areas.
Liability for loss of/damage to the Chartered vessel (Damage to Hull, DTH), Liability for loss of/damage to the Cargo being carried (Cargo) and other general liability risks associated with the operation of the ship and carriage of cargo (P&I).
DAMAGE TO HULL
Liability for loss of/damage to the Chartered vessel
A DTH (Damage to Hull) claim might arise as a result of the Charterer sending the vessel to an unsafe port or berth, or as a result of damage caused by stevedores during cargo handling operations. DTH claims can also result from damage caused by the cargo itself, for example a stowage breakdown or a cargo fire. Where a Charterer is responsible for a DTH claim then he will normally also be liable for the time lost repairing any damage. There is also a risk of the Charterer being liable for engine damage as a result of supplying off-spec bunkers.
Liability for loss of/damage to the Cargo being carried
Cargo claims typically arise under a bill of lading or similar contract of carriage, or by way of indemnity to a vessel owner under the terms of a charterparty.
Other general liability risks associated with the operation of the ship and carriage of cargo (P&I)
P&I covers the Charterer against any claims that might arise from risks such as death and personal injury, fines or penalties, pollution, wreck removal or stowaways to cover just a few of the ways that a Charterer can find themselves legally liable under a charterparty or bill of lading.
We can provide a limit of liability up to
USD 500 million
for Liability cover.
The deductible and policy terms are structured to suit the Charterers individual needs.
EXAMPLES OF LIABILITY (P&I) CLAIMS
The facts of this recent arbitration award (London Arbitration 1/20) are very common and will be familiar to most of our clients.Read More »
This case illustrates Charterer's exposure to an (implied) indemnity claim by Owners who are able to prove a loss as a result of complying with Charterer's orders.Read More »
There is often the perception that a very limited third party liability risk is attached to a voyage charterer. Whilst to some extent this is accurate, the reality is...Read More »
This claim example illustrates the exposure of a time charterer to cargo claims in the first instance when trading with bills of lading on its own form as carriers.Read More »