Introduction of Charter's liability

There are two main divisions included in charterers liability cover: Defence and Liability

Defence cover

Pursuing or defending a dispute can result in enormous legal costs. Defence cover is the facility offered by the insurance companies to insure Charterers against legal costs and expenses arising from disputes concerning:

• Hire, freight, deadfreight and passage money
• General and particular average
• Demurrage or dispatch
• Detention
• Breach of charterparty, bill of lading etc.
• The proper loading etc. of cargo
• Quality of bunkers supplied

Liability cover

Liability cover is the facility offered to insure charterers liability against disputes arising from shipowner or other claimant, regarding the following aspects:

• Loss of or damage to vessel
• Loss of or damage to cargo
• Oil pollution (except that arising form a tanker in US territorial waters
• Loss of or damage to third party property
• Death or personal injury
• Fine 
• General average
• Liability arising under certain indemnities and contracts
• Quarantine expenses
• Collision
• Wreck liabilities
• Liability under towage contracts