One of the most significant exposures faced by any charterer is liability for physical loss of or damage to the chartered ship itself. Unsafe port and unsafe berth claims, damage caused during cargo operations, stevedore damage and damage caused by off-specification bunkers can result in claims running into millions of dollars – and unlike a shipowner, the charterer has no hull policy of its own to respond. Our Charterers’ Liability for Damage to Hull cover is designed to meet exactly this risk, protecting the charterer’s balance sheet against one of the largest single claims it can face.
Structure of the Cover
Cover falls into three broad subheadings: liabilities to owners, the Member’s own interests, and the Member’s costs, fees and expenses. Together, these three limbs give the charterer complete protection around the chartered ship – covering not only what the charterer may owe to others, but also what the charterer itself stands to lose.
1. Liabilities to Owners
The first and largest limb of cover responds to the charterer’s legal liability to the owner of the chartered ship for physical loss of or damage to the vessel. Typical claims include damage arising from orders to proceed to an unsafe port or berth; damage caused during loading, stowage and discharge operations, including stevedore damage for which the charterer is responsible under the charterparty; damage caused by the supply of off-specification bunkers; and the owner’s consequential losses, such as loss of hire and drydocking costs, where legally recoverable from the charterer.
2. Member’s Own Interests
The second limb protects the charterer’s own financial interests in the venture. This includes loss of or damage to the Member’s bunkers on board the chartered ship, freight at risk, and other proprietary interests of the Member that may be lost or damaged in a casualty involving the vessel.
3. Member’s Costs, Fees and Expenses
The third limb responds to the legal costs, survey fees, expert fees and other expenses incurred by the Member in investigating, defending or pursuing claims falling within the scope of cover. In a major casualty, these costs alone can be very substantial, and having them covered allows the Member to mount the strongest possible defence of its position.
Extensions and Additions to Cover
Extensions of and/or additions to cover may be available to Members, allowing the policy to grow with the Member’s business. Available extensions include: through transit liability, providing cover for liabilities arising before loading or after discharge, where the Member has assumed responsibility for the through carriage of cargo; extended through transit liability, giving broader protection across multimodal transport legs; consortium and/or slot charterers’ liabilities, covering liabilities arising out of vessel-sharing agreements and slot charter arrangements; extended cargo liability, giving protection beyond the standard cargo liability terms; and containers and container liability, covering loss of or damage to containers and liability arising from their use.
Individually Underwritten, Precisely Matched
Each entry is individually underwritten, allowing limits, deductibles and extensions to be matched precisely to the Member’s trading profile. Whether you charter a single vessel a year or run a fleet of tonnage on period charter, our underwriters will build a cover that reflects your actual exposure – no more, no less.
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’ Liability for Damage to Hull 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.