This insurance provides cover corresponding to a shipowners' P&I and FD&D covers, but customized to embrace the unique nature of charterers' risks in respect of an entered vessel.

Cover may also be extended to a charterer's liability for the loss of, or physical damage to, the entered vessel (typically referred to as "Damage to Hull" (DTH) or "Charterers' Liability to Hull" (CLH) cover). Claims may arise in a variety of circumstances, such as when a charterer instructs a shipowner to load a cargo that unexpectedly damages a vessel's cargo holds, or when a charterer orders a vessel to an unsafe berth which leads to grounding damage.

Charterers' Risk cover is generally subject to an agreed limit of liability, and is typically offered on a fixed-premium basis.

This insurance is referred to as "Class III," and the Class III Rules are the basic contractual terms upon which charterer members are insured. For full details of this cover, please see our Rules.

As with shipowners' P&I and FD&D covers, pro-active and expert service is a crucial aspect of this insurance, especially as the contractual and factual contexts for charterers' disputes are often quite complex.