Charterers’ Liability Insurance 2024/2025 Version 5.00 (February 2024) Page 1 of 50 CONTENTS Page Part I Introductory 3 1Risks Covered 3 2Costs and expenses, Sue and Labour 3 Part II Charterers’ Insurance 4 SECTION A CHARTERERS’ LIABILITY INSURANCE (CSL) 4 1Seafarers 4 2Passengers 5 3Not applicable 6 4Injury to, Illness of or Death of Third Parties 6 5Stowaways or Persons Saved at Sea 6 6Diversion Expenses 6 7Repatriation 6 8Life Salvage 7 9Collision 7 10Damage to Property 7 11Non-Contact Damage to Ships 8 12Pollution 9 13Wreck Removal 10 14Towage 10 15Contracts of Indemnity or Guarantee 11 16Quarantine 11 17Cargo 11 18General Average 14 19Fines 15 20Not applicable 16 21Liability to and in respect of the Chartered Ship 16 22Not applicable 17 23Not applicable 17 24Special Cover 17 25Special Cover for Salvors 17 26Special Cover for Extended Through Transit Risks 18 27Risks Specifically Excluded 18 28Exclusion of Certain Specialist Risks 20 SECTION B CHARTERERS’ BUNKERS 22 1Charterers’ Bunkers Limited Conditions 22 2Charterers’ Bunkers All Risks 22 SECTION C CARGO OWNERS’ LEGAL LIABILITY 24 1 Cargo Owners’ Legal Liability 24 Part III Extensions to Cover 25 1War and Strikes Risks 25 Charterers’ Liability Insurance 2024/2025 Version 5.00 (February 2024) Page 2 of 50 CONTENTS Page Part IV Exclusions, Limitations and Warranties 27 1Excluded Risks 27 2Sanctions 27 3Imprudent Trading 27 4Cyber Risks 27 5Communicable Disease Risks 27 6War and Strikes Risks 29 7Nuclear Risks 30 8Other Insurances 31 9Limitation of Liability 32 10Classification and Condition of Ships 32 11Byelaws 34 Part V Claims 35 1Obligation of the Assured in respect of Claims 35 2Powers of the Managers relating to the Handling and Settlement of Claims 35 3Powers of the Association relating to the Handling and Settlement of Claims on the Association 36 Part VI General Terms & Conditions 38 1Articles of Association 38 2Definitions 38 3Extent of Cover 40 4Sanctions 41 5Insurance Act 2015 41 6Right of Recovery 42 7Application for Insurance 42 8Co-assureds 43 9Period of Insurance 44 10Payment 44 11Mortgagees 45 12Associated Companies 45 13Termination of All Insurances 46 14Termination of Insurance of Ship 46 15Effect of Termination 47 16Premium Due on Termination of Insurance 47 17Reinsurance 48 18Forbearance 48 19Assignment 48 20Delegation 49 21Disputes and Differences 49 22Notices 49 23Jurisdiction 50 Charterers’ Liability Insurance 2024/2025 Version 5.00 (February 2024) Page 3 of 50 Part I Introductory 1 Risks Covered Liabilities, costs and expenses arising out of events occurring during the Policy Period and insured by the Association on the terms set out in the Association’s Certificate of Insurance and incorporating inter alia the following: 1.1 Part I Introductory 1.2 Part II Charterers’ Insurances as referenced in the Certificate of Insurance 1.3 Part III Extensions to Cover as referenced in the Certificate of Insurance. 1.4 Part IV Exclusions, Limitations and Warranties 1.5 Part V Claims 1.6 Part VI General Terms & Conditions. 1.7 Such other terms and conditions as may be agreed between the Association and the Assured as set out in the Certificate of Insurance. 2 Costs and expenses, Sue and Labour 2.1 Costs and expenses Costs and expenses, including legal fees, which the Assured may incur in respect of any liability or expenditure against which the Assured is insured. 2.2 Sue and labour Losses, costs and expenses necessarily incurred by the Assured after an incident in order