Delay Insurance

The pressure of modern ship operations and the advent of concepts such as just-in-time production mean that delays can be costly for all parties in the logistics chain. For those involved in a vessel’s operations like owners, charterers and managers, every unforeseen delay has a direct impact on profitability. Nordic’s Fixed Premium Delay Insurance products help protect ship operators by providing cover for delays and bridging the gap to where traditional Loss of Hire policies incept.

How does cover for delays typically work?

An operator’s mainstream marine insurance policies will not usually respond to losses caused by delay. Hull and machinery (H&M) covers the costs of repairs following an incident but not the lost revenue whilst those repairs and inspections take place. Likewise, P&I cover responds to the third party liabilities, legal and other costs as well as certain fines but excludes the financial consequences of delay, including time spent waiting whilst security is provided (which may be significant if a bank guarantee is required).

The only kind of insurance available for delays is Loss of Hire cover. But these policies only incept where there has been a H&M claim and typically carry a 14-day deductible as standard so restricting protection to long delays. For quality ship operators this makes recovery under these kinds of policies a very remote eventuality and adds a considerable cost burden of up to of 14 days’ revenue every time they suffer an incident.


The Nordic Solution

Fixed Premium Delay Insurance from Nordic Marine (Nordic) delivers a tailor-made solution by giving ship operators the ability to insure against the loss of revenue suffered during delays falling into the primary layer, i.e. for the first 14 days’ delay following an incident.

Designed by marine insurance experts with many years of experience in the delay insurance market, the Delay Insurance products deliver cost efficient protection against loss of revenue caused by delays following incidents occurring onshore or related to the ship itself. The cover is a specialised, stand-alone product not linked to H&M, P&I or any other policy and responds to a comprehensive list of insured perils - which is customisable upon request - that might cause delay to the ship.

By offering fixed premium together with fixed and agreed Daily Insured Amounts (DIA) plus the comfort of cash flow protection at the primary level, the Nordic solution provides ship operators with complete budgeting certainty around delay. It’s also fully customisable to meet clients’ individual needs and backed by Nordic's comprehensive in-house claims service. nmip.se

Mark Mathews introduces Nordic’s Fixed Premium Primary Delay Insurance products. 


Nordic Marine Insurance

Founded in 2012 and approved by the Swedish FSA as per the Solvency II regulations in Europe as well as an approved Lloyd’s Cover Holder the following year.

Discover Nordic 



The West of England Group

The West of England Group is a leading global provider of maritime insurance and risk management solutions that has been helping to protect shipowners, operators, and charterers since 1870.

Discover West



These fixed premium primary layer products provide cover for loss of earnings arising out of delays caused by a wide range of ship and shoreside perils. The primary layer is typically the first 14 days, but higher limits can be considered. 


Delay - Owners


Delay - Maritime Lien


Delay - Charterers 


Delay - Primary Loss of Earnings


Delay - Scrubbers

Case Studies

We have a number of case studies that involved Nordic and highlights their outcomes as a direct result of a shipowner having Nordic's Fixed Premium Primary Delay product. These studies aim to help understand the scope of cover that can be obtained through Nordic.




Not usually (or are subject a high deductible):

H&M covers loss of tangible assets and the costs of repairing them but excludes loss of earnings.

P&I covers the liabilities arising out of incidents listed in the P&I Club’s rules but excludes loss of earnings.

Loss of Hire covers loss of earnings out of an event covered under the H&M policy but usually applies a 14 days’ deductible to each delay.

Charterers operating vessels on their own trade or on voyage charter basis are exposed to loss of earnings for delays caused by onshore perils. The Nordic Primary Layer Loss of Earnings Insurance for charterers provides cover against delays caused by a wide range of onshore perils, from weather and other natural events, closure of ports, berths or waterways, physical obstructions as well as strikes, lockouts and other labour disputes plus war risks including the use of weapons of war.

H&M-type perils include: collision with another ship, FFO damage, stranding or grounding; fire or explosion involving ship, cargo, stores and bunkers; damage or breakdown of or in machinery on board.

P&I-type perils include: illness, injury or death;  contraband; pollution; desertion; detentions that concern crime, incidents involving other ships owned or managed, misdescription or misdeclaration of stores, stowaways, rescuing of refugees or saving of life at sea, quarantine of crew or passengers.

Primary Layer Loss of Earnings covers a shipowner’s or charterer’s immediate loss of earnings caused by specific named perils, providing a “buy back” option for risks that are excluded from H&M  and P&I policies. Written on the basis of a fixed and agreed daily insured amount (DIA) and on fixed premium basis, the maximum cost for the cover is known at inception to provide complete budget certainty. These “sleep easy” policies are backed by Nordic’s full in-house claims service, meaning external surveyors/adjusters are usually not required.

The main product offered is Nordic’s fixed premium Primary Layer Loss of Earnings Insurance, providing protection against loss of earnings following delays caused by a wide range of both ship-related and shoreside perils in the period before any Loss of Hire cover incepts. This is usually the first 14 days’ delay but higher limits can be considered. Other delay products have been added, such as Scrubber Breakdown and Maritime Lien covers.

West have acquired the shareholding of Alandia in Nordic, although Alandia will remain an important partner of Nordic. This acquisition perfectly reflects West’s strategic objective of increasing the range products and services it offers to support ship owners and others in their operations by partnering with recognised experts who have a proven track record in their respective fields.

Apart from the primary delay covers described in Q3, Nordic also offers:
• Access to mainstream covers such as H&M and P&I
• P&I Crew Stop Loss Deductible Insurance
• Liability to Cargo Insurances
• Marine Yacht Insurances 
• Marine Cyber Insurance

Nordic Marine Insurance (Nordic) was founded in Stockholm in October 2012. It is an approved insurance company by the Swedish FCA and is a cover holder for Lloyd’s.

Nordic is primarily a provider of niche marine insurance products especially around delay but since 2017 they have also be able to provide H&M insurance as well as other more mainstream marine insurance products.

To discuss further please contact:

Mark Mathews
Mark Mathews
Deputy Head of Underwriting (London)
T. +44 20 7716 6123
M. +44 7788 872065
E. Mark.Mathews@Westpandi.com
Greg Franklin
Greg Franklin
Regional Head of Underwriting – European Team, Deputy Head - USA North & Canada
T. +44 20 7716 6041
M. +44 7816 528 917
E. Greg.Franklin@Westpandi.com
Xuanlun Cai
Xuanlun Cai
Regional Head of Underwriting
T. +852 2863 4577
M. +852 9300 3726
E. XL.Cai@Westpandi.com
David Griffiths
David Griffiths
Regional Head of Underwriting
T. +65 6416 4892
M. +65 9666 2683
E. David.Griffiths@Westpandi.com