Charterer's Liability Insurance

We can arrange for you, the charterer, an insurance to cover your legal liabilities as a charterer.

The charterer puts himself almost in the same position as the owner of the ship, but while the owner of the ship will usually arrange a P&I insurance ,many charterers do not insure their liabilities.

The charter party puts on the charterer's shoulders a variety of risks which may vary based on:

  • Who appoints stevedores for loading and unloading
  • Who appoints agents
  • Who issues the B/L and in who's name, etc.

Charteres can be divided subject to their position:


  • Operators of liner services

Offers customers regularly scheduled voyages in which the charterer usually uses a local agent to issue the charterer's B/L, thus becoming the Carrier and liable for the safe carriage of the goods.

Operators of liner services usually will charter the vessel on a time charter basis other than on a voyage basis.

  • Owners of goods

Importers / Exporters of goods who ship their own goods from / to their suppliers / customers. Owners of goods will usually charter a vessel on a voyage basis. The main risks the charterer may suffer here is damage to the chartered vessel caused during loading and discharging of the carried goods by stevedores, by the carried cargo or by unsafe port of berth.

If the charterer , subject to the charter party, is liable also to cargo - although he owns the cargo and the cargo is insured by his marine cargo insurance policy, the charterer might be liable to damage for his own cargo. This might happen if the insurers of the cargo pay the cargo owners for loss or damage to the goods, and try to recover from the vessel's owner who will claim the charterer ( the owner of the cargo ).

Clients who will insure their cargo and their charterers liabilities through Atlas , will have a clause in their marine cargo policy which will state that the cargo insurers will stop recovery in such case.

  • Freight contractors

The charterer is a middle man who brings together the cargo owner and the vessel owner. Usually in such cases the cargo's owner does not like to get involved with the chartering of vessels. The charterer will make two contracts- one with the vessel's owners and one with the cargo's owners where he will confirm to bring a suitable vessel available at an agreed port at an agreed time.

Usually the freight contractors will not issue the B/L on their own forms.

We can extend the usual charterers legal liability insurance to include:

  • Freight Demurrage & Defense

To cover the legal cost and expenses which the charterer is bound to make due to dispute under the charter party with third parties.
The dispute may involve an arbitration or legal proceeding concerning freight, demurrage or any other subject relating to the charter party.

  • S.O.L.

To cover the charteres liability for physical loss or damage to the carried cargo on deck ( against under deck B/L ) subject to institute shipowners liability clause (CL 353).