Loss of Hire
Loss of Hire (LoH) insurance protects a Shipowner's income and cash flow if a casualty prevents the vessel from earning hire.
Loss of Hire insurance is intended to complement the extensive West Hull coverage but can be tailored to fit the specific needs of an individual.
It provides coverage for daily income loss that results from physical damage to the vessel, as long as the loss can be recovered under the hull and machinery coverage.
What is covered?
Loss of Hire covers loss due to the ship being wholly or partially deprived of income, including:
- Stranding of the vessel
- Physical obstruction (excluding ice) preventing the vessel from leaving a port or a similar limited area
- Measures taken to salvage or remove damaged cargo
- Any event that is allowed in general average pursuant to the 1994 York-Antwerp Rules.
Some exclusions apply that are important to be aware of, such as the Actual and Constructive total loss of the vessel, as well as a Non-physical blocking of a vessel (e.g. by order from authorities).
How it works
Loss of Hire is administered by a world-class Hull and Machinery underwriting team and fully supported by an A-rated panel of reinsurers.
West Hull will utilise the resources and expertise of the Club’s West Partner, Nordic Marine Insurance in Sweden with Jan Limnell leading the team.
Limit and deductible
- Limits of cover are offered based on the number of indemnity days multiplied by the daily earnings or a fixed sum agreed and stipulated in the policy
- The number of indemnity days are usually specified to 60, 90 or 180 days per event and per year
- Standard minimum deductible of 14 days
- For suitable risk profiles we propose an option to lower the deductible to 7 days through Nordic Marine’s Primary Loss of Earnings cover (more info is available on the Nordic Marine website here)
Who can be covered?
All parties who have a financial stake in the vessel's income and would suffer losses if the vessel were out of operation due to an insurable event.