Loss of Hire

Loss of Hire: Loss of Hire provisions covers for the lasting financial loss incurred by you during ship repairs. Downtime results in loss of freight rates, despite the on-going operational costs for the vessel’s maintenance. So, ship owners can use a Loss of Hire insurance cover to bridge these losses by putting vessels on time charters off-hire. You still must manage crew and capital costs but most of it remains an insurable loss.

This cover enables the assured to recover their loss of income as a result of the vessel being unable to operate due to damage or being prevented from trading due to a blockage of the port.

The cover is based on a daily amount reflecting the vessels earning capacity declared and accepted by Underwriters. The policy normally has a maximum of 90 days and a deductible of 14 days.