Even the most carefully managed chartering operation will, from time to time, find itself in a dispute. Charterparty disagreements, unpaid claims, contested deductions and performance disputes are part of the commercial reality of shipping – and pursuing or defending them can be expensive. Arbitration and litigation costs frequently run to six or seven figures, and a party without legal cost protection may be forced to settle a good claim, or concede a bad one, simply because of the cost of the fight. Our Charterers’ Cover removes that pressure.
A Valuable Adjunct to Liability Cover
Our Charterers’ Cover provides for legal costs and expenses arising out of a wide variety of disputes in which a charterer may be involved. This cover does not form part of the Charterers’ Combined Single Limit (CSL) liability cover, but is a valuable adjunct to it – ensuring that alongside protection against liabilities, the Member also has the means to enforce its own rights. Liability cover protects you when others claim against you; Charterers’ Cover ensures you can act when you have a claim against others.
What the Cover Includes
The cover extends to legal costs and expenses in disputes with a broad range of counterparties, including: disputes with owners, such as charterparty performance claims, speed and consumption disputes, off-hire disputes, wrongful withdrawal and cancellation claims; disputes with port authorities, including disagreements over port dues, charges, berthing and access; disputes with bunker suppliers, covering quality and quantity disputes, short delivery and contamination claims; and disputes with sub-charterers, shippers, receivers, agents and other parties in the contractual chain.
How It Works
When a dispute arises, the Member has immediate access to our in-house legal and claims team, who will assess the merits of the case and advise on strategy. Many disputes are resolved at this early stage through firm, well-founded correspondence. Where proceedings are appropriate – whether arbitration, litigation or mediation – the cover responds to the associated legal costs and expenses in accordance with the club rules, and our team manages external lawyers and experts to keep costs proportionate to the amounts at stake.
The Benefit to Members
Freedom to pursue legitimate claims without fear of disproportionate legal costs. Early, expert assessment of the merits of any dispute, so that resources are committed only to cases worth fighting. Access to a global network of maritime lawyers, arbitrators and technical experts. And a commercial approach focused on resolution, not escalation – because the best outcome is usually the one that lets you get back to business.
Complete Peace of Mind
Combined with our Charterers’ liability covers, this protection gives charterers complete peace of mind across both their liabilities and their rights. Whatever the dispute, wherever it arises, you will never stand alone.
Why Work With Us
As a specialist marine insurance provider, we combine deep technical knowledge with a genuinely commercial outlook. Our Members benefit from competitive and transparent terms, cover that is tailored to their actual trading pattern rather than a one-size-fits-all wording, and a team that is available around the clock, every day of the year. We measure our success not by the policies we issue, but by the problems we solve for our Members – quickly, quietly and cost-effectively.
Get in Touch
If you would like to learn more about our Charterers’ Cover, request a quotation, or simply discuss your current insurance arrangements with an expert, our underwriting team would be delighted to hear from you. Contact us today by phone or e-mail, or complete the enquiry form on our contact page, and one of our specialists will come back to you within one business day. There is no obligation, and every enquiry is handled in strict confidence.