The insurance responds if the vessel or vessels are physically blocked or trapped in ports, rivers, waterways, channels or similar due to congestion, accidents or external physical damage caused by civil risks, war risks, nature cats and force majeure events. The insurance can also be extended to include external blocking (the inability to access any of the foregoing). The insurance pays an agreed daily indemnity.
The insurance can also be purchased as a Trade Disruption Insurance or an Extended Loss of Hire Insurance where the catalogue of risks covered is wider and gives better protection where there is a chance that risks may occur outside the precise definition of Blocking and Trapping.
Scope:
Vessel or vessels are physically blocked from trading.
Applies to:
Anyone trading in a geographical area where blockage is possible; and where the trade is crucial to the company's business.
How it works:
The insurance responds if the vessel or vessels are physically blocked or trapped in ports, rivers, waterways, channels or similar due to congestion, accidents or external physical damage caused by civil risks, war risks, nature cats and force majeure events. The insurance can also be extended to include external blocking (the inability to access any of the foregoing). The insurance pays an agreed daily indemnity.
The insurance can also be purchased as a Trade Disruption Insurance or an Extended Loss of Hire Insurance where the catalogue of risks covered is wider and gives better protection where there is a chance that risks may occur outside the precise definition of Blocking and Trapping.
Markets:
London, Norway.
Price Range:
From 0.5% to 1.75%
Self Retention:
From 7 to 30 days, sometimes on a fleet aggregate or event basis.
Time to market:
30 to 60 days.
