Charterers Risk Overview

By the nature of the contracts they sign, the vessels they charter or the cargoes they operate, often across a multitude of different markets and legal jurisdictions, all charterers are exposed to a diverse array of risk.

Whether as a time, voyage, slot or space charterer of a vessel, or the actual owner of cargo, commercial charterers and traders can face a myriad of potential exposures and 3rd party liabilities during the period of any shipment or charter. These typically can range from cargo liabilities or contractual indemnities, liabilities in respect of certain fines, claims for damage to the vessel or sometimes the need to contribute towards general average or salvage expenses. In extreme situations, a charterer's liability might even extend to the total loss of the vessel itself or ultimate responsibility for a major pollution incident.

With one of the largest and most established programs, the UK P&I Club is proud to offer market-leading Charterers & Traders liability cover shaped around the specific needs of the Assured to cater for these risks and provide the most comprehensive insurance & risk management solution.

Who should buy the cover?

Whilst cover will be tailored around the needs of each Assured, the insurance is suitable for all charterers and is bought by a wide demographic consisting of commodity traders, container lines, grain houses, project cargo specialists, dry bulk operators, cruise providers, energy majors, shipping pools, petrochemicals corporations & mining companies to name but a few.


As part of the product, bespoke cover can be arranged for the standard charterers P&I risks (with market-wide limits available) as well as extended to include additional risks & insurances where required.

The standard risks comprise liabilities arising from cargo (either on a direct, indemnity or non-contractual basis), pollution, personal injury, Damage To Hull (“DTH”), fines, damage to property and wreck removal as well as contributions in general average and/or salvage where freight or time charterers’ bunkers may be at risk.

Additional insurances are also available and may include cover for war risks, contractual deviation from the standard terms of cover, detention of the vessel, cargo owners’ legal liabilities and P&I exposures faced by NVOCCs. Cover for the loss or damage to charterers bunkers can also be arranged.

Tailored risk solutions or cover extensions may additionally be discussed upon request.

For more details on the risks a Charterer faces on a day to day basis and our comprehensive Charterers Liability cover, please download the Charterers Brochure.


With a global network of offices and personnel, the Club can offer round the clock technical, legal and claims assistance as well as emergency response & casualty management depending on the Assured’s preferred time zone or the location of any incident.

For more details on our training options, please download the Charterers and Traders Training Menu

Furthermore, and where requested, the Club can also provide technical support and traini
ng on a number of topics and issues tailored around the specific needs, or trading exposures, of the Assured.


  • Charterers Terms and Conditions 2022 (538 KB)


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  • UK Charterers Liability Brochure 2021 (4 MB)


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  • Charterers and Traders Training Menu (69 KB)


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  • Offshore Additional Cover for Charterers 2021 (997 KB)


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T&C pre 2022

  • Charterers Terms and Conditions 2021 (2 MB)


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  • Charterers Terms and Conditions 2020 (7 MB)


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Our expert

Alec Kyrle-Pope

Charterers Risk Specialist
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Our expert

Kwan Tang

Charterers Underwriting Specialist
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UK Defence Club

The UK Defence Club is the leading and most influential provider of legal costs insurance to the maritime industry. In uncertain times, we give shipowners and operators the confidence that, if a dispute arises, they will have support for legal and related costs as well as in managing any litigation that arises.