Charterers’ Liability

Who and what we cover

This cover protects charterers against liabilities to shipowners during the charter period, including damage to or loss of the owner's ship, loss of hire following an incident, and where you're unable to use the ship but continue paying for its hire.

These can include:

• Grounding at an unsafe port

• Cargo shift causing severe listing

• Port authority investigations causing delay

• Quarantine restrictions or port closures

• Arrest of the ship following cargo disputes

• Piracy or seizure of the ship

• Refused entry to a port or place of refuge

Key features and benefits

• Protection against non-damage loss of hire claims

• Loss of use extension

• Clear limits and structure

• Expert claims and legal support

• Global support network

• Responsive, member-focused service

What your cover includes

Charterers' cover is designed to give you clear, reliable protection, with defined terms that reflect the risks of each operation, your insured ship, and each claim's circumstances.

Charterers' Liability cover

• Protects against liabilities under standard charterparty terms

• Can be extended to include additional contractual liabilities, subject to our previous agreement

• Excludes non-standard risks such as illegal activities, wilful misconduct, or unapproved contractual exposure

Loss of use cover (optional)

• Available as an add-on to the Charterers' Liability cover (not available as a standalone product)

• Provides financial protection for loss of use after an initial waiting period – typically seven days – certain charterparty clauses apply

• Pays an agreed daily amount for a defined period

• Limits available up to US$1m per ship and US$5m annual aggregate for the chartered fleet

Where cover does not apply

Charterers' Liability cover

• Illegal activities, including drugs or contraband onboard

• Wilful misconduct or reckless behaviour

• Contractual liabilities that go beyond standard charterparty obligations without our prior approval

Loss of use

• Strikes

• Discovery or suspicion of drugs, contraband, or illegal goods onboard

• Owner's failure to pay a legally enforceable debt

• Credit risk, financial failure, or insolvency within the charterparty chain

Terms and conditions, and specially agreed terms

Cover applies according to our terms and conditions, and the terms specially agreed when we first cover a charterer.

Risks covered elsewhere

Some risks are usually insured separately, such as war risks or certain specialist activities.

Experts in Charterers cover

Our underwriting, claims, legal and loss prevention specialists bring deep experience of the shipping industry for practical support at every stage.

With teams in London, Hong Kong, Piraeus, Limassol, Seoul and Shanghai, and a trusted global network of local expertise, we’re available wherever and whenever you need us.

Loss and incident handling

When an incident happens, getting early personal support can make all the difference. You can contact us straight away for guidance.

You'll speak directly to experienced people who understand your business and can help you decide what to do next - without unnecessary delays or handovers.

We'll work with you to coordinate the response, bringing in local experts, surveyors, or specialist legal support where needed, so you stay in control at all times and can move forward with clarity.

Claims handling

When you make a claim, our claims team will guide you through the entire claims process and support you from start to finish. Our focus is on resolving claims quickly and fairly, so you can focus on your operations.