Product · Charterers' Liability
Charterers' Liability for Modern Voyage Risk
Liability cover for charterers exposed to cargo, pollution, personal injury, vessel damage, third-party property damage, salvage, wreck removal, bunkers, demurrage, fines and (where reinsured) war and terrorism extensions.
What it covers
- ◆Liability for loss of or damage to cargo
- ◆Pollution liability arising from chartered operations
- ◆Personal injury and death claims
- ◆Damage to the chartered vessel
- ◆Third-party property damage
- ◆Salvage and wreck removal cost contribution
- ◆Bunker spill liability
- ◆Demurrage and detention exposure
- ◆Fines and regulatory penalties (where insurable)
- ◆War and terrorism extensions where reinsured
Who it is for
- ◆Voyage and time charterers
- ◆Operators of contracts of affreightment
- ◆Commodity traders chartering tonnage
- ◆Brokers placing charterers' covers
Pricing
How Quantica prices it
Pricing combines exposure-based modelling on cargo value and voyage profile with frequency-severity assumptions for liability lines. The engine accounts for vessel age and quality, port risk, cargo type and operator track record.
Reinsurance and capital loads are then layered to produce the technical premium, with commercial pricing reflecting market conditions and rate adequacy.
Underwriting data required
- • Charter type and duration
- • Cargo manifest and values
- • Voyage and port plan
- • Operator history and sanctions screening
- • Claims record on prior charters
Claims examples
- • Cargo damage following heavy-weather voyage
- • Pollution event in port from chartered tanker
- • Demurrage dispute with terminal operator
- • Bunker spill during STS operation
Risk controls
- • Per-voyage limit and aggregate cap
- • Sanctions and trade screening
- • Mandatory referral for high-risk cargo
- • Sub-limits for fines and pollution
Reinsurance
Reinsurance considerations
Charterers' programmes are commonly protected by excess-of-loss treaties with separate war/terrorism reinsurance. Quantica records gross and ceded exposure per voyage and tracks aggregate erosion across the operator portfolio.
This product description is illustrative. Cover, exclusions and policy terms depend on the final wording and applicable regulatory authorisations. No insurance is offered until appropriate authorisations are in place.