We offer a comprehensive P&I package at fixed premiums, which can be tailor made to suit the needs of every type of Shipowner, no matter how small. As ‘niche player’ we target Shipowners with cargo carrying vessels up to 10,000 GT and any other non-cargo carrying vessels, such as fishing vessels, tugs, supply vessels and other special crafts operating at sea or in ports.

Shipowner's liabilities are the contractual and legal liabilities arising from owning and operating a ship.

There are two things a Shipowner does to earn an income. He may decide to operate the vessel in the freight market on a voyage-by-voyage basis or contract the vessel for a period of time. In both cases the Shipowner has an absolute obligation to keep the ship seaworthy and to employ a competent crew. The Charterers of the vessel will use the ship as a means of transport for the contracted goods. The liabilities between the Shipowner and the Charterer are laid down in Charter Parties and Bills of Lading. A variety of liabilities will stay with the Shipowner, especially because of the nature of the Bills of Lading. Even if the Shipowner can argue that the Charterer has taken over the full control of all cargo handling, the Shipowner is exposed to liabilities from third parties, either as Carrier under the Bills of Lading or as bailee of the goods during the voyage, which may lead to claims in tort.

Unlike Charterers, a Shipowner has an increased burden of risks they can be potentially exposed to. They must therefore seek insurance to protect them from threat of financial insecurity arising from exposure of these risks.

It goes without saying that a Shipowner should not consider to sail his ship without P&I cover. There is a wide range of liabilities: crew liabilities as per the crew contracts; cargo liabilities as per B/L and C/P; third party liabilities, such as damage to property, collision liabilities, wash damage; mandatory liabilities, such as pollution, fines, wreck removal; special liabilities, such as stowaways, GA contributions, towage, life salvage and special expenses, such as quarantine, sue & labour and enquiry expenses.

It is paramount to understand the nature of a P&I cover and even more so, it's restrictions and exclusions.

Cover is being provided in the following sections:

• crew claims

• third party injury claim

• cargo claims

• collision

• loss of or damage to property

• wreck removal

• fines and confiscation

• quarantine expenses

• towage

• pollution risks

• general average

• costs of formal investigations

• sue and labour costs

• fines

• enquiry expense

• life salvage

• risk incidental to ship owning

The main risks are:

1. Contractual Liabilities to Cargo

These are liabilities under a contractual relationship between the Shipowner and a Shipper or Consignee under a bill of lading or waybill and a Charterer under a charter party or other form. Shortage, non-delivery and damage to cargo claims are covered under this heading. Our cover includes implied and written terms i.e. it is an implied term that vessel is cargo worthy and seaworthy.

2. Liability to Crew

These are liabilities to care for the crew during their employment and include medical, repatriation, and substitution expenses should the crewmember fall ill or get injured. The Shipowner may also be held liable for any compensation payable arising from illness or injury rendering the crewmember incapable of returning to work or for loss of any limb. Cover is also being provided for death compensation to the family arising from death of a crewmember.

3. Liability to Third Parties

Third Party liability is simply responsibility to an individual or a company for any errors caused by the Shipowner resulting in financial loss to that individual or company wherein these losses do not fall within the scope of any contract between the parties. Examples of this type of liability can be seen in pollution and collision claims, as well as personal injury claims.

4. Liability for Costs

All costs, which have to be made to defend a liability claim as per our policy wording, are covered. The costs that are regularly incurred are survey expenses and lawyer fees. Even if the Owner is not liable, but a party is pursuing a claim, the costs for such unwarranted liability claims are also covered, unless the claim is not covered.

Restrictions and Exclusions

The most important restrictions and exclusions of a P&I cover are as follows:

1. It is not allowed to waive any rights of legal limitation sums, which will apply in any legislation or convention.

2. Cover for loss or damage to cargo is subject to Hague Visby Rules. Any rights or immunities may not be waived. In countries where the Hamburg Rules apply compulsory cover will be extended accordingly.

3. P&I insurance will give subsidiary cover, which means that any other policy, which will cover certain liabilities, will prevail.

4. Loss or damage to owned or leased containers or other owned or leased equipment is not covered.

5. Loss of freight, hire or bunkers is not covered.

6. Loss of time as a result of cancellation of a vessel is not covered.

7. Financial losses resulting from bad debtors are not covered.

8. Insolvency or fraudulent acts of agents are not covered.

9. On carriage of goods the following occurrences are excluded from cover:

a) issuance of "ad valorem" bills of lading

b) carriage of jewelries and banknotes, unless agreed in writing with the insurer

c) deviation of the contracted voyage

d) delivery of goods without original bill of lading

e) issuance of ante- or post-dated bills of lading

f) issuance of bills of lading with intentionally wrong description

g) carriage of goods on deck

For the items under a, b, c and g additional insurance can be obtained.

Letters of Indemnity (L.O.I.)

We are aware of the fact that L.O.I.'s are negotiated to find solutions for irregularities (clean Bs/L, change of destination, delivery of cargo without original B/L). It should however be noted that the above restrictions and exclusions remain fully in force, even if a letter of indemnity is negotiated through our recommended wording. At all times, we would recommend that L.O.I's are backed by a first class bank.