Shipowners' Limitation of Liability

Shipowners' Limitation of Liability is a legal principle that allows shipowners to limit their financial responsibility for damages or injuries caused by their vessel. Instead of being liable for the total amount of the claim, they can cap their liability to a predetermined sum, often based on the value of the ship and its cargo. This principle aims to protect shipowners from excessive legal claims, encouraging investment in maritime trade while ensuring that victims can still seek compensation, albeit possibly limited. It balances the interests of shipowners and those affected by maritime incidents.