Delving deeper into Charterers’ Liability
Our Marine experts are back with more useful tips and guidance that we hope will prove helpful for you and your customers. This time, we’re taking a look at the world of Charterers’ Liability.
What is Charterers’ Liability?
Charterers’ Liability is a liability cover for anyone who charters a ship, which can mean it affects your commercial and pleasure craft clients alike.
One real life example is a client who moves large pieces of steel which would not fit into a container. They need to charter a vessel to move their goods, and therefore are exposed for charterers’ liability.
What does Charterers’ Liability do?
Charterers’ Liability is there to cover the liabilities that the charterer of the ship accepts under contract and tort. The contractual element comes from the Charterparty document, which is the contract between the owner and the charterer.
These liabilities are a mixture of damage to the ship, and third-party liabilities faced by the charterer.
What could the consequences be of not taking out Charterers’ Liability?
Say for example that the charterer is hiring stevedores who load the ship incorrectly, which causes the ship to sink or other damage to be caused, the charterer could be held liable.
Equally, the charterer could be arranging fuel and bunkers for the vessel, which could cause damage to the engine if incorrect, which could also lead to the charterer being held liable.
The charterer doesn’t have to actually be liable, to be held liable.
Similarly, with any third-party liabilities such as crew, stowaways, collision, or removal of wreck; if it’s deemed that the charterer has been negligent, then they could be held liable.
How can Charterers’ Liability be purchased?
Charterers’ Liability can be purchased through Geo for an individual charter or an annual policy.
Get in touch
Our expert Marine team would be happy to discuss options with you that meet your clients’ needs. We care deeply about the marine sector and many of our team are sailors themselves; with decades of experience we really understand the challenges your clients face.
Please do feel free to pass on this information and remember the team are here to help with any queries: just email at: sales@geounderwriting.com