Shipowners’ Liability to Cargo (SOL) Insurance is a comprehensive insurance covering various risks related to breaches of the contract of carriage of cargo
Who should buy it?
Shipowners’ and Charterers’ who have taken out an underlying Shipowners’ P&I Insurance.
What does it cover?
SOL Insurance acts as a “buy back” of your full P&I cover for future breaches of a contract of carriage. Normally you, in your capacity as the contractual carrier, will have several defences available under a contract of carriage next to your right to limit liability. In some cases, those defences or the right to limit liability may not be available.
Typical examples of such cases are when cargo is carried on deck, but the Bill of Lading states that it is carried under deck, when a vessel suddenly needs dry docking with the cargo still on board or when a vessel needs to deviate from the contractual agreed voyage because of having to collect spare parts, bunkers, stores etc. or to perform a crew change. More situations are possible, but the common factor of these situations is that there was no prior agreement in the governing contract of carriage. Consequently, cargo interests may argue that the terms of the contract of carriage have been breached, depriving you from your rights under that contract. And on top of that and as a result, the standard P&I cover could be prejudiced. The cover will be precisely tailored to your needs. Full details of this insurance (including applicable limits) can be obtained from the Company on request.