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)
• Other general liability risks associated with the operation of the ship and carriage of cargo (P&I)
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.
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.
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 Charterer with up to USD 500 million of cover per vessel.
EXAMPLES OF LIABILITY (P&I) CLAIMS
Charterer Time Charter Trip Form NYPE Type Cargo Claim Synopsis: 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. Equally it highlights the need to combat indemnity claims where there is merit to do so. This example explains how an Assured is…Read More »
Form: Gencon Type: Damage to Hull Type: Cargo Claim Synopsis: 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 that the exposure could be substantial in the event of a claim typically for breach of a safe berth/port warranty or,…Read More »
Charter: Time Charter Trip Form: NYPE Type: Cargo Claim Synopsis: 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. With the valuable assistance of Club correspondents and local surveyors, the Club is able to establish that the nature of the…Read More »
Charterer Period Time Charter Form NYPE Type Damage to Hull Claim Synopsis: The quality of bunkers stemmed by the vessel has always been a major concern to Charterers who are commonly required by contract to supply bunkers of a certain specification. This example highlights the exposure that a Charterer has to very significant claims for damage to engine caused by…Read More »