Liabilities

Even though a shipowner will have its own P&I cover, the charterers can face huge liabilities themselves. The UK Club charterers’ product provides high levels of cover to react to both operational and catastrophe liabilities.

The UK P&I Club charterers’ cover includes both those risks which are covered by conventional P&I insurance, and additional risks which are specific to charterers.

P&I risks include:

  1. Pollution
  2. Cargo
  3. Personal injury
  4. Fines
  5. Wreck removal

Additional risks include:

  1. Damage to hull
  2. Detention
  3. Contribution to General Average & salvage
  4. War & Terrorism

Liabilities can be to cargo interests, other third-parties and the shipowner. They can be either contractual (eg breach of the charterparty) or non-contractual (eg pollution).

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