If you charter (a part of) a vessel from a third party in order to transport goods and/or persons.
Yes. Every charterer faces operational/financial risks no matter the type of charter party.
It depends on your role in the logistic chain and the type of charter party you work with. But you will face a number of operational risks, such as:
the breach of a safe port or safe berth obligation under the charter party, which may lead to a damaged vessel;
liability as a carrier to cargo interest under a contract;
liability for personal injury claims from crew members/stevedores or other third parties.
It can have a big impact on your business because:
most professional ship owners require an insured position under the charter party so you simply have to comply to be in business;
your balance sheet is unprotected: you are exposed to unforeseen liabilities that threaten the continuity of your business;
you have a responsibility to your shareholders and other stakeholders.
You cannot always avoid all risks, and actually you don’t want to, because taking risks generates returns. That’s your business. However you want to manage your return by transferring those risks you cannot or don’t want to run yourself by buying our tailor made Charterers Liability protection.
This depends on your role in the logistic chain and the type of contracts you work with.
In general we protect you against:
liability for damage to the vessel: the owner of the vessel demands compensation for damage to his vessel or his operation (returning the vessel too late);
liabilities to cargo: cargo interests demand compensation for lost or damaged cargo or for delivering the cargo too late;
special marine liability risks such as death, injury or illness of crew stevedores or other third parties, collision or contact damage, pollution, and removal of wreck.
Backed by the worldwide recognized security of Lloyd's of London DUPI Charterers Liability provides first class security, excellent service and a smile.
Notify your insurance broker as soon as possible and he or she will call us immediately. We will do a first assessment of the claim and appoint a local claims correspondent or surveyor and/or attorney to investigate further. They will collect facts and provide immediate help and assistance when necessary and make sure we are informed. We will open up and manage the communication line with you, your insurance broker and the service providers involved.
There is no direct answer to this question. Important factors however are: type of vessel and operation, type of charter party and type of Bill of Lading issued, cargoes involved, trading area.
To think that the insurance of the Ship Owner or cargo interest will cover your risks being a Charterer. This is not true, you are not insured. Last but not least: to think that these risks can be for 100% avoided because of operational excellence. ‘It can’t happen to me’ is never true.