Loss of Hire and Delay

Whilst Hull and Machinery and War Risks covers will provide protection against physical loss or damage and P&I cover will cover an owner or manager against third party liabilities, they do not offer cover for the loss of income. As part of our role to consult our clients, we analyze our clients’ needs and find the most appropriate cover for them to guarantee their income stream through Loss of Hire and/or Delay insurances which are tailored to protect the differing exposures of Owners, Charterers, Managers and Financiers.


There are three main classes of coverage:


Physical Loss or Damage – the policy responds for time lost by the vessel, as a result of physical loss or damage, so long as the loss has resulted from an Insured Peril. Generally speaking the policy will cover against the perils defined in the vessel’s Hull and Machinery Policy.


Extended Loss of Hire – this cover protects against events either onshore or onboard which have not necessarily caused damage to the vessel, but do nevertheless prevent the use of the vessel. These could include events such as strikes of crew or shore workers, alleged pollution, crew desertion (or detention), stowaways, heavy weather etc.


Primary Delay coverage – This product protects owners against loss of revenue suffered during delays falling into the primary layer for the first 14 days delay following an incident. We have strong relationships with all of the specialist markets who provide this coverage and a wealth of experience working with the products