Charterers Liability Insurance can be arranged either through a P & I Club or in the open market using the market standard wording.  This wording is for all Chartered vessels other than demise or bare boat charters.

Under usual clauses the policy would cover:

• the liability of the charterer for damage to the hull.
• the liability of the charterer for damage to cargo.
• other P & I risks as per the rules of the United Kingdom Mutual Steamship Assurance Association Ltd.

The main exclusions from the policy are the risks of General Average, Salvage and Salvage Charges.  Demurrage is only covered subject to details of the number of days indemnity and daily indemnity required, and then only following a marine peril covered by the policy.

Under Time and Voyage Charter Parties charterers are exposed to substantial area of risk where damages are caused to the vessel itself.  Such damage may occur in a number of ways.