Cargo Shippers and Receivers Liability Cover
We have noticed a trend over recent years that sale and purchase contracts for commodities are becoming more complicated. Clauses that many cargo importers or exporters incorporate into their contracts attract similar exposure to that faced by a charterer and, typically, contain an express warranty as to the provision of a safe berth or port, liability for stevedoring operations and also certain responsibilities as a cargo owner to third parties either under the contract of carriage or at law following transfer of title to the cargo, but prior to physical delivery of the cargo.
Liability cover for Cargo Shippers and Receivers
Some sales contract terms such as those relating to selling on CIF or CFR terms or buying on FOB terms will require the client to charter the ship and arrange transportation. However, other contractual terms allow third parties to arrange for the carriage of the cargo with liability for the provision of a safe berth and the stevedoring operations being for the seller or buyer of the cargo. Exposure to these types of claims can run into millions of dollars and could involve significant damage including pollution and the wreck removal of the contracted vessel.
Up to USD 500 Million
We can provide a limit of liability up to USD 500 million for P&I cover.
The deductible and policy terms are structured to suit the charterer’s individual needs.
Cover for risks faced by an FOB Seller or a CIF/CFR Buyer
- Unsafe berth
- Damage to the vessel caused by the stevedores during loading or discharge
- Cargo Owners’ Legal Liability (COLL) arising out of the carriage of cargo on a non-chartered ship
- Personal injury
- Liability in respect of third-party property
We have an experienced claims team who are used to dealing with matters arising out of complex maritime transportation contracts. These range from dealing with cargo issues under bill of lading and charterparties to claims for damage to the vessel due to the alleged unsafety of the port or berth.
Three Hubs, One Team
The London office hosts our main underwriting, claims and finance functions, while we have separate claims teams in Shanghai and Dubai. The geographical spread of our hubs and our network of global correspondents ensures we can provide assistance to any client, anywhere, anytime.