Shipowner’s right to limit liability

• Include language that specifically reserves this right
• Indemnity or “knock for knock” provisions may be deemed to act
as a waiver of this fundamental right
• To be on the safe side, request the following provision to be
included in PSC contract: “Notwithstanding anything to the
contrary herein, nothing shall restrict, prevent or otherwise
prejudice the rights of owners, insurers, charterers, managers
and/or operators of the vessel from limiting liability under any
applicable law or international convention, including but not
limited to the Convention on Limitation of Liability for maritime
Claims, 1976 (London).”
• If forced to agree onerous terms, contact the Association’s
Underwriting Department and/or your insurance broker to provide
additional cover to plug any gaps