Charterer’s Liability

In general, the charterer - except for the navigation risks - puts themself in the same position as the owner of a ship.

Based upon the charterer’s agreements, the charterer takes on board various risks regarding their ship, crew and load, as well as towards third parties and the environment. They may also be liable for the commissioned logistic companies, shipping agents and the corresponding activities of loading and unloading, the issuing of freight certificates, etc.

It is universally acknowledged that a ship owner must not move their ship without valid P. & I. insurance at hand (Protection and Indemnity Insurance as a special Liability and Legal Protection insurance).

Therefore, it should always be mandatory for the charterer as well to examine the real risk within the underlying Charterer’s agreements. ATS is happy to assist clients during this phase of examination. We offer adequate insurance solutions to you are fitting for your company and the given risks.

The following types of Chartering and standard contracts (also charter parties) often represent the basis for the Liability and demand of insurance for the charterer

Voyage Charter

When undergoing a Voyage Charter Party, the ship owner provides the ship, including the crew, for a defined voyage. Such a charter usually takes place either as a full charter or as a partial charter, such as part of the cargo area. The underlying charter contract (charter party) is usually issued, based upon the internationally acknowledged standard contracts, such as GENCON94.

Time Charter

In case of a Time Charter Party, the shipping company provides the operable ship to the charterer, including the crew, for a defined period of time. The costs of this are usually settled per day. The charterer also pays the cost for fuel, port calls, etc. The responsibility for the technical condition usually remains with the shipping company. Commonly used types of contracts for this example are NYPE1995 and SHELLTIME4.

Bareboat Charter

A so called Bareboat Charter Party means that the charterer is provided the ship without crew for a single voyage or a defined period of time. Hence, the charterer does not only cover the charter rate, but also the cost for crew, maintenance, repairs and operating supplies. The charterer also takes the risk of an outage resulting from a technical defect. A commonly used base for this example is the BARECON89.

The following insurance products offer solutions to secure your liability as charterer and represent one of our major business focuses.

» Charterer’s Liability Insurance incl. damage to hull
» Marine Legal Protection (Freight, Demurrage and Defence / FD & D)
» Cargo Owner’s Legal Liability Insurance
» Insurance for Risk of War
» Bunker Insurance

» Freight Insurance
» Strikes Insurance
» Detention Insurance
» Piracy Insurance (Kidnap and Ransom / K & R)
» Loss of Hire Insurance