Who is this cover designed for?
This cover is designed for shippers, receivers, and traders who, when entering into a sales and purchase agreement for the import or export of their goods, may be exposed to certain risks and obligations of a maritime nature in relation to the ship that has been nominated for the sea transportation. Some transactions will involve the assured chartering a ship to carry the cargo that is being traded. In such a case, cover can be obtained for Charterers’ Liability P&I through The Charterers Club. Where the assured is not chartering the ship, but still undertakes certain obligations to the seller or buyer under the governing sales purchase agreement, then we are able to offer the Cargo Shippers and Receivers Liability Cover.
What type of contracts are covered?
Contracts for the sale and purchase of cargoes and commodities, although based on standard Incoterms forms which define responsibilities between seller and buyer, can vary significantly. This mostly includes FOB sales and CIF/CFR purchases. By way of example, there is an increasing trend for such contracts (particularly those involving large trading houses) to include an express provision whereby the seller or buyer has to guarantee the safety of the berth nominated for the ship to conduct cargo operations or has to assume responsibility for loading and/or discharge operations. Our Shippers and Receivers Liability Cover is designed to respond to claims resulting from a client’s actionable breach of these type of obligations.
What type of claims are covered?
The cover extends to liabilities relating to the following:
- Unsafe berth
- Damage to the vessel arising from loading or discharge
- Cargo Owners’ Legal Liability arising out of the carriage of cargo on a non- chartered ship
- Wreck removal
- Personal injury
- Liability in respect of third-party property
We can offer significant limits of liability for these risks, which is a key consideration where there is the potential for claims relating to wreck removal, vessel damage, pollution and personal injury.
What is the limit of cover?
It is possible to purchase cover with a limit of up to US$500 million.
Who is the Insurer?
The underlying security in respect of MECO Marine policies is Great Lakes Insurance SE (“GLISE”), a wholly owned subsidiary of Munich Re. Founded in 1880 Munich Re is now the world’s largest reinsurers employing more than 40,000 people across more than 50 countries. GLISE enjoys the same security ratings, which are AA- by Standard & Poor’s and A+ by A.M. Best respectively.