Charterers

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Charterers

Post & Co early recognized the necessity of a dedicated cover for Charterers’ Liabilities. For more than 25 years we have been operating our Charterers’ Liability facility with 100% Lloyd’s security. Combining this first class security with the long term expertise of Post & Co has resulted in a Charterers’ Liability package that can accommodate any type of chartering activity.

Owners and Managers take out P&I insurance to cover the liabilities resulting from operations of the vessel, like cargo damage, pollution, loss of life, personal injury, etc. Operators can also charter vessels, instead of owning or managing them, whilst cargo owners and commodity traders hire vessels to carry their own cargoes. These Charterers face similar liabilities. If they desire to cover these liabilities, we advise them to take out P&I cover to protect their position as Charterer.

In addition to these P&I risks, the chartered vessel may get damaged during the charter period. Examples such as stevedore damage by loading or discharging, bottom damage as a result of unsafe port or damage to the engines resulting from off-spec bunkers, supplied by Charterers are abundant. All these damages can result in liability of the Charterer towards the Owner of the chartered vessel.

P&I insurance does not cover damage to the vessel. Charterers therefore have to take out a so-called Damage to Hull insurance, covering the liability of the Charterer for damage to the vessel. We emphasize that this concerns a liability insurance. It does not replace the Hull and Machinery insurance of the Owners.

Division of liabilities between Charterers and Owners of the chartered vessel is laid down in contracts, the charter parties. Standard charter parties like Gencon, Baltime, Supplytime and NYPE charter parties are acceptable for P&I and Damage to Hull insurers. However, in most cases charter parties are amended and additional clauses are being added. This can drastically influence the division of liability between the parties involved and where possible the Charterers’ Liability insurance has to be adapted accordingly.

In addition to the above-mentioned P&I and Damage to Hull insurance, Post & Co provides a full range of additional covers such as: “Freight, Demurrage and Defence” (F. D. & D.) insurance for legal costs in connection with a dispute not covered under the P&I and Damage to Hull insurance, damage to or loss of charterers’ bunkers, various contractual liabilities, including so-called deviation aspects.

Post & Co readily advises on any kind of Charterers’ package. Various combinations are possible, depending on specific needs and wishes. Please contact the charterers team for more information.

Products

Just like Owners and Managers, Charterers should take out insurance to cover their liabilities resulting from the operations of the vessel.

P&I insurance covers Assured’s liabilities such as (but not limited to):
• Personal injury of seamen, passengers and others on board
• Loss or damage of cargo
• Pollution
• Wreckremoval
• (Excess) collision with other vessels and property
• Towage
• Property on board
In addition to the Charterers’ P&I risks, Charterers may be liable for damage to the vessel, occurring during the charter period. P&I insurance does not cover damage to the vessel. Charterers therefore have to take out Damage to Hull insurance, covering liability of the Charterer for such damage.
Freight, Demurrage & Defence covers the legal expenses of the Assureds to defend their position in disputes which do not fall under the P & I insurance. These can be disputes in respect of Charter Parties, Bills of Ladings, Contracts of Carriage and disputes related to demurrage, freight payment, etc. The insurance covers the legal expenses in respect of these proceedings, not the actual amounts under dispute.
The F.D. & D. insurance will have a deductible to be borne by the Assureds themselves. Such a deductible can be covered under the Legal Expenses cover, subject to the condition that also F.D. & D. cover has been taken out.
The conventional P&I insurance covers the legal liabilities of the assured. Legal liabilities arise from national laws and international conventions and depend on the trade and the operation of the vessel.

The Clubs / insurers expect their members / assureds to conclude contracts based on unaltered conditions for certain trades and operations such as:
• The Hague / Hague Visby Rules for the international carriage of goods
• The Athens Convention for the international carriage of passengers

Furthermore, unaltered standard BIMCO contracts like supplytime 2005, NYPE, Baltime etc. are generally accepted.

Any amendment to the standard accepted conditions need special attention and where necessary additional cover has to be arranged. Post & Co will be pleased to assist in arranging cover for such contractual liabilities.
This is a commonly used abbreviation for the so-called “Ship Owners Liability” cover, which responds in case of a geographical deviation or breach under the contract of carriage. Assureds should realize that such a breach or deviation can deprive the carrier from the usual defences and limitations under the contract of carriage and prejudices the standard P&I cover. The S.O.L. Insurance covers the liability for loss of and/or damage to the cargo in case of such a breach or deviation.
Bunkers provided and owned by Charterers can represent a substantial value. The Charterers’ Bunker insurance covers the loss of or damage to the bunkers. If in case of General Average the value of the bunkers contribute to the General Average award, the Charterers’ Bunkers insurance covers such contribution.
This insurance covers the daily hire amount if the vessel is detained as a consequence of an act of piracy and the vessel cannot be put off hire under such circumstances. Cover pays up to the agreed limit subject to the daily hire in the Charter Party.
Covers loss of revenue, additional costs, expenses and contractual penalties resulting from a range of perils including machinery breakdown, political risks, strikes, earthquakes and other incidents resulting in delay of the vessel.
Traders, manufacturers or other Owners of goods chartering vessels to transport their cargoes will of course face the same Charterers’ Liabilities as is the case for other Charterers. In addition however cargo Owners may also be confronted with liability claims in their capacity as cargo Owners instead of Charterers. The majority of cargo insurances does not cover liabilities resulting from transport of the products. To cover these risks, Post & Co’s covers can be extended by separate agreement to include cargo Owners’ Legal Liability.
Covers the extra costs that Charterers may incur due to delays resulting from marine perils. For instance, if a Charterer operating under a Contract of Affreightment (C.o.A.) has to charter replacement tonnage as the initial Charter cannot be continued due to a covered risk, this can result in substantial, additional costs for the Charterer. These extra costs fall under the Charterers’ Interest insurance.
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