Loss
of Hire
Insurance
_________________________________
Physical damage to a vessel can result not only in repair costs but also in significant loss of income while the vessel remains out of service.
Loss
of Hire
Insurance
_________________________________
Physical damage to a vessel can result not only in repair costs but also in significant loss of income while the vessel remains out of service.
Loss of Hire insurance is designed to protect Owners against insured loss of earnings following qualifying physical damage, subject to the policy terms, deductible period and agreed daily amount.
Key Variables
Marasco reviews:
- daily insured amount
- deductible period
- maximum indemnity period
- vessel earnings
- charter arrangements
- underlying H&M cover
- anticipated repair exposure
Why It Matters
For commercially employed vessels, prolonged downtime can materially exceed the cost of some physical repairs.
Loss of Hire therefore forms part of broader balance-sheet and cash-flow protection.
FAQs
Does every H&M claim trigger Loss of Hire?
No. The underlying casualty must meet the policy requirements.
What is the deductible period?
The number of initial loss-of-hire days borne by the Assured.
How is the daily insured amount selected?
It should reflect realistic earning exposure.
Can War Loss of Hire be insured separately?
Potentially, depending on market availability.
