A very important component to supplement the insurance cover besides the hull insurance and P&I insurance is concluding loss of hire insurance. Loss of hire means loss of earnings. A shipping accident or damage to machinery may lead to it not being possible to commence a voyage, or that a voyage has to be interrupted. It may be a consequence of the latter that the vessel is out of action for several weeks or even months, because the damage needs to be repaired at a shipyard. A considerable financial loss is incurred to the vessel operator or the shipping company as a result. Such losses may largely be covered by individually customised loss of hire insurance, so that the loss of earnings is minimised.
Such insurance is of very great significance for the operator of vessels, as, in many cases, when damage occurs, the operator is faced with very high financing requirements. In the aforementioned damage cases, the charter revenues lost as a result are normally not insured by the marine hull insurance. Therefore the economic risk is always high for any shipping company. The loss of hire insurance was created for such scenarios.
Individual excesses, as well as the respective compensation per day of lost business based on the range of cover previously determined, can be negotiated for the loss of hire insurance.
The team of HMB Hamburg Marine Insurance Brokers will be happy to give you non-binding and competent advice in any matters concerning the loss of hire insurance.
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