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