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ACQ 2016-1

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