| Product Line: |
Marine & Energy |
| Class: |
Marine Liability |
| Sub Class: |
Charterer's Legal Liability |
| Contact: |
Robert Palmer |
| Coverage: |
Provides insurance coverage for lessors of watercraft under Charter Parties and other lease agreements |
| Geography: |
Worldwide |
| Paper: |
New York Marine And General Insurance Company
Gotham Insurance Company |
| Typical Insureds: |
Shippers who charter a vessel or space on board a vessel to carry their own cargo or cargo for others
Vessels commonly chartered for corporate entertainment, scientific research, or to support oil and gas exploration and production. |
| Underwriting Concerns: |
Terms of the Charter Party: Charterer’s Legal Liability is primarily a contractual liability, so it is important to review the agreement to determine what liabilities the vessel owner is shifting to the charterer.
Size, Age, Flag, and Classification of Vessel
Duration of the Charter
Cargo to be carried Destination, with special attention to ice- or war-risk exposure
Pollution liability potential and the P&I limits carried by the vessel owner
Charterer’s experience and loss history |
| Tips: |
Many states have passed laws holding the cargo owner or even the cargo receiver liable for pollution under certain circumstances. A cargo owner’s pollution liability endorsement can sometimes be added to the charterer’s legal liability policy to provide the needed protection in these instances. |