The Swedish Club’s Charterers’ Liability Cover is available to time or voyage charterers and slot and space charterers. It is particularly appropriate for risk-averse charterers in trades with relatively low claims frequency but high claims severity and who need high limits and flexible terms.
The cover is not suitable for bareboat or demise charterers, who would need to arrange for Owners’ P&I insurance.
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Scope of Cover
The terms of the cover are based on the Owners’ P&I Rules and the add-on for traders and cargo owners.
- Personal injury
- Damage to hull
- Detention and a similar delay
- Charterers’ debunking costs
- Damage to other property
- Freight and bunkers contribution to general average
- War risks (including terrorism)
- Fines (customs, immigration and accidental pollution)
- Wreck removal
Typical Charterers’ risks
Charterers’ liability for damage to or loss of the vessel may arise in a number of ways:
- Damage to or loss of the vessel caused by charterers naming an unsafe port or berth.
- Damage to or loss of the vessel due to shifting of the cargo during the voyage if this is the result of inadequate or incorrect stowage of cargo, contrary to the terms of the charterparty, by stevedores employed by the charterer.
- Damage to tanks caused by the cargo itself, such as corrosive cargo or sediment, or shifting during transport.
- Damage to or loss of the vessel, including winches, derricks, etc., caused during the loading or discharging of cargo by stevedores or other agents or servants of the charterer.
- Damage to the vessel or vessels during STS (ship-to-ship) operations or lightering.
- Damage to the vessel’s engines caused by inferior quality bunkers, which is for the account of and supplied by the charterer.
- Charterers’ liability for salvage of the vessel could form part of a claim against charterers for damage to the vessel. However, there have also been incidents where a vessel has been subject to extensive salvage operations without having suffered damage – for example, following a grounding in soft mud. The Charterers’ Liability Cover would also cover a charterer’s liability for such salvage.The Charterers’ Liability Cover responds to these risks and the liability for related consequential losses (i.e. shipowners’ economic losses resulting from the damage to hull.) This includes, for instance, shipowners’ claims for demurrage detention, loss of hire and loss of use where the vessel is delayed beyond the stipulated loading/discharging time due to damage to the vessel.