An insured event occurs and triggers payment of a declared daily amount, up to an agreed limit either expressed in USD or in number of days.
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Scope:
Whole or partial deprival of income following events (physical and non-physical) that take place away from the operator’s asset (vessel, rig or otherwise) for example, the closing of a waterway or port, failure of an onshore facility to deliver, the inability or extra cost of discharging, reduction of charter hire following force majeure events, weather, expropriation and confiscation, quarantine, arrest or detainment as covered by P&I, the introduction of new legislation or reinterpretation of existing legislation.
The product generally comes in two formats: a high limit high retention program individually tailored to the client's needs and contracts; and a low limit, (e.g. USD 5 million) low retention (e.g. 7 days capped at 15 days per event involving several vessels) more generic cover.
Applies to:
Operators who deliver marine transportation or production services integrated in the wider value chain and with income dependent on all components of this logistical chain delivering as scheduled, e.g. on a Contract of Affreightment. Traditional buyers of the product include operators in LNG/LPG, Chemical, Automobile,or Energy fields.
Recently more generic products related to a wider part of the marine industry has become available.
How it works:
An insured event occurs and triggers payment of a declared daily amount, up to an agreed limit either expressed in USD or in number of days.
Markets:
Lloyd’s, Norway.
Price Range:
0.4 - 5% depending on scope and stretch.
Self Retention:
7 - 15 days, or higher USD retentions in return for significant limits.
Time to market:
Up to 60 days depending on scope.
