Charterers' Liability Cover - UK P&I Members Area

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2Charterers’ Liability CoverRisk is increasing, and not only because of aggregations of value carriedon ever larger ships, and increasing commodity prices.The regulatory environment underpins claimsinflation and will look at all connected parties inthe event of a serious shipping accident, not justthe shipowner.You may be a slot, space, voyage or time charterer.You may be a traditional chart-erer with a shipoperating background, or a trading company movingraw materials or finished product, or a trader buyingand selling on a scale that requires chartering.Whichever you are, you will find what you needin UK Club’s Charterers’ Liability Cover facility,which can be adapted to meet your exact needs.You certainly need insurance. It may be that thetraditional product meets your needs well – and itremains available. However, increasingly charterersare seeking something specifically tailored to theirparticular situation – in which case the flexibilityof our new product can provide what you need.• Tailored package of cover and premium• Integrates with hull and other covers• Pure liability protection for non-operationalcharterers• Pollution liability without sub-limit• Most extensive network support• Minimise delay due to arrest/detention• Responds to continual changes in charter fleet• Minimises administrative burdenWhy a UK Club cover?Financial security and service are the twin pillars upon which the UKClub bases all its activities. The cover and service provided to thecharterer member is no exception.The UK Club’s strength as the world's largest P&Iclub enables it to negotiate covers offering greaterscope and limit, and deliver them for a morecompetitive and stable price than charterers mightachieve individually.The resources and economies of scale that the UKClub enjoys as the world’s largest mutual P&Iinsurer confer considerable benefits on its ownedand chartered Members including:ClaimsAs a mutual, the Club takes a positive, co-operativeattitude towards its Members’ claims. The widespread of international offices and staff makes itsensitive to the needs of different regional andtrade areas.Genuine 24 hours claims handling responseThe UK Club possesses the largest internationaloffice network in the P&I industry. Offices inNew Jersey, San Francisco, London, Piraeus,Singapore, Hong Kong, Beijing, Shanghai andTokyo are manned by dedicated UK Club serviceteams. Recruited from a variety of operational,legal and technical backgrounds, they combinein-depth expertise with awareness of commercialrealities – to advise on shipping, liability andinsurance issues.An unrivalled online claims support serviceInnovative web-based technology, including our“ClaimsTrac” system, allows you to access andanalyse your claims data and loss record at yourconvenience – day or night.Commercial underwritingThe UK P&I Club takes a flexible, individualapproach to cover for all Members. Many of itsunderwriters have been longstanding specialists in
3particular sectors or geographical regions.Financial securityThe UK Club’s considerable reserves, prudentreserving policy and comprehensive reinsuranceprotection provide great financial security. TheClub has maintained a Standard and Poors ratingat the highest level of any P&I club since thatagency began reporting on the mutual P&Iindustry.Flexible and innovative serviceThe UK P&I Club continues to pioneer manynew service initiatives such as its “value formoney” system, managing the performance andcosts of all parties in the claims process. Increasedrecent exposure of ship operators to criminalliability and media attention has been met withmore developed specialist expertise andrelationships with the relevant agencies.Loss prevention and adviceThe UK P&I Club is committed to safety. Itshigh-level loss prevention programme – the mostextensive in the industry – aims to offset risingclaims and maintain quality amongst Members.Flexible Charterers’ P&I CoverUK Club charterers’ liability insurance providesthe benefit of access to the broad cover describedwithin the Club’s Rules. However, the uniqueposition of the charterer in the maritime industryrequires an enhanced and tailored cover to ensurethat those exposures which go beyond those of theconventional owner-operator are addressed andfinancially secured.Comprehensive cover with high limits at acompetitive pricesThe flexible charterers’ cover offers variable limitsof cover up to US$750 million any one accidentor occurrence.No sub-limit for pollutionThere are no sub-limits imposed below the overallagreed limit of the cover for either pollution risksor other exposures arising from the ship ownerslimitation clause.Integrates with hull and other coversThe flexible charterers cover is designed to becombined with the Damage to Hull cover as wellas other risks (see below)Pollution liability cover for charterer’sown cargoCover can be extended to include cargo owner’spollution liability where the charterer or anaffiliated/associated company is also the cargo owner.Pure liability protection for non-operationalcharterersCover can also be extended to include theMembers’ legal liability as cargo owners and/orshippers where no charterers interest in thecarrying vessel exists.Flexible range of additional tailored coversMany operators require additional specialist risksto be included to reflect the particular hazardsfaced by their sector or trading pattern. A reviewof some of the key additional covers can be foundon the back page of this brochure.Damage to HullAll risks cover for charterers’ shipsCover extends to include financial loss, liability,costs or expenses arising as a direct consequence ofloss of, or damage to, the entered ship.Associated costs and expensesSue and labour and legal costs in accordance withthe cover provided under the flexible charterersliability cover.General average and salvage exposureCover includes the charterer’s general average andsalvage contributions and salvage charges inrespect of loss of or damage to the entered ship,charterer’s bunkers on board and the freight at riskin relation to the ship.High limits of coverThe flexible charterers’ cover offers variable limitsof cover up to US$750 million on any oneaccident or occurrence. To obtain the full limit ofUS$750 million, cover must be purchased on acombined basis.War RisksStandard cover includes War Risks on a worldwidetrading basis.Additional coversA charterer often requires protection for loss of ordamage to his bunkers arising from an incidentinvolving his ship (see back page for additionalcovers).
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Charterers' Liability Cover - UK P&I Members Area

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