Charterers can face significant liabilities to cargo interests, other third-parties and the shipowner. They can be either contractual (eg breach of the charterparty) or non-contractual (eg pollution).
A new section is now on our website to emphasise the liability exposure faced by charterers and to provide guidance on dealing with those risks through specialist cover, loss prevention and other guidance.
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. It provides high levels of cover to react to both operational and catastrophe liabilities.
A review of the key charterers risks has been written by our legal director, Dr Chao Wu. Her article assesses the risks in three main areas - charterer's direct liability to third parties, indemnification of owners and damage to hull.
Our new section on charterers liabilities also seeks to break down the risks and cover into sections that aid understanding. A separate web page addresses the
The issue of incorporation of charterparties into bills of lading is debated by the English courts on a fairly frequent basis; most recently in the Anna Bo (2015) and the Magellan Spirit (2016). So what's all the fuss about really and how do you avoid getting caught out?
