Charterers Liability insurance is a type of coverage which is mainly understood as very complex and probably one of the most overlooked risks. The shipping industry nowadays operates in a world where the liability environment becomes more and more legislative. One of the main reasons for this is an increasing amount of regulation on topics like safety and pollution. Also, a charterer is considered as a carrier under many jurisdictions which involves huge responsibilities and liabilities.
Charterers in all its possibilities (voyage, time, slot, space, etc.) are exposed to huge risks either directly to third parties or through contractual liabilities and indemnities. In some occasions these exposures are large enough to threaten the financial basis of even the most well-established company. That is the reason why charterers of a ship today should recognize the necessity to buy insurance protection. The so-called Charterer’s Liability-insurance provides outcome for the client.
In order to charter a ship, ship owners and charterers will most importantly sign an agreement which is called the Charter Party. A charterer will have an obligation to indemnify the owner for third party liability where this results from a breach of the Charter Party by the charterer or arises out of activities which are the charterer’s responsibility. Most ships are chartered either on a time charter or voyage charter contract. Time charter means that the ship is being chartered for a specific period where it is available to the charterer.
The time charterer (Charter Parties: e.g. NYPE, BALTIME, SHELLTIME) can then further sub-charter the vessel to other voyage or time charterers. Voyage charter (Charter Parties: e.g. Gencon, ASBATANKVOY, AMWELSH) means that the ship is being chartered for a specific voyage from A to B with specific cargo. In both cases the charterer assumes liabilities towards the shipowner for damage caused to the ship during cargo handling, because of damage resulting from an unsafe port or berth, or due to stowage of cargo. Also, charterers can be held liable for damage to, loss or shortage of cargo. In all charter parties charterers have their liabilities for e.g. damage to hull, damage to cargo, P&I, pollution.
Charterama offers coverage for their clients in three main areas and is then further able to provide additional services whenever required. Our portfolio contains the following:
Charterama, with offices in Rotterdam and Hong Kong, is a specialist underwriter focused exclusively on Charterers Liability insurance and Defence (FDD) and related business. We offer a full range comprehensive Charterers P&I cover, able to respond worldwide with an extensive global network of correspondents. We have a dedicated team of specialists who have proven track record and a long-standing experience and reputation in Charterers Liability.
Charterama is committed exclusively to the charterers’ market and offers a dedicated alternative to the P&I market. Charterama has entered into a partnership with leading marine insurer RSA, to market and distribute Charterers Liability and FDD cover on a global basis. This partnership means charterers will benefit from the unique combination of Charterama’s deep technical knowledge and RSA’s financial robustness, as demonstrated through its A rating from Standard & Poor’s.
Please contact your underwriter for any further information about Charterama and/or our product portfolio.
This article is written by Bastiaan Langeveld.
In the day to day hectic of shipping you don’t need problems. Unfortunately, sometimes problems do occur and in that case you need quick solutions and someone who understands you.
Charterama is the Charterers liability solution and understands your business.
With our experience in the shipping industry, on board ships, in ship operation or in commodity trade, you benefit from our hands-on and pro-active mentality and approach.
Claims issues will be picked up without delay; you will speak directly to a specialist who knows who you are. And your quotation and your documentation will be with you within 24 working hours, or even the same day.
Contact our office in Rotterdam, Hong Kong or in Paris.