Freight, Demurrage & Defence (in short: Defence insurance) provides cover of shipowners, manager and charterers for legal and other costs incurred in establishing and defending claims which arise out of an event occurring during the period of insurance/entry.
You have been forced to accept an arbitration clause with a not well recognized jurisdiction. You are concerned that the arbitration will not be objective.
Primary Layer Loss of Revenue as a consequence of delays caused by named perils.
A Drug Seizure LOH insurance covers an agreed daily amount of lost revenue up to a maximum of 360 days. A Drug Seizure Total Loss insurance pays the value of the ship if it has been detained for more than 360 days.
Exposure to liabilities where cargo has been discharged to incorrect party due to a faulty bill of Lading.
P&I Insurance provides cover to shipowners, operators and charterers for third party liabilities encountered in the commercial operation of a vessel.
Cargo and Specie Insurance is offered by our specialist team and deals with all our client needs, including Commodities, Project Cargo, Stock throughput & Storage Risks, Fine Art & Exhibitions, General Cargo, Motor Truck Cargo, and Oil & Petroleum.
H&M covers the assured’s economic interest in the ship and its equipment’s capital value by covering total losses and cost of damage repairs. It also contains an element of liability insurance and costs of measures to avert or minimise the loss, including salvage awards and general average.
Hull interest insurance covers the assured’s economic interest in the capital value of the ship. The hull interest insurance also covers excess collision liability.
The freight interest insurance covers the assured’s economic interest in the long term freight interests of the ship.
Loss of Hire insurance covers daily loss of income following a physical damage to the vessel. The loss as a general rule must be recoverable under the H&M cover, but can be extended to respond to war risk, and certain non-physical events.
War risk insurance covers total loss and damages, collision liability, hull/freight interest, loss of hire, owner’s liability (P&I) including occupational injuries, as a consequence of war like hostilities, civil unrest, sabotage, terrorism, arrest, seizure etc.
Charterer default insurance covers counterparty risk on the part of the charterer. It is applicable where the owner charters out his or her ships and where the charter delivers a significant part of project’s cash flow or represents a significant part of the owner’s balance sheet.
Non Delivery Insurance Covers appreciation of value beyond amounts insured under the Builders Risk Insurance and/or the Refund Guarantee, and should be considered in a rising market or on securing of an advantageous charter.
Delay in Delivery Insurance covers a fixed Daily Amount in excess of the deductible period up to a limit that would normally coincide with the shipbuilding contract’s cancellation clause. It should be considered in a rising market or on securing of an advantageous charter, or if required by lenders of equity investors.
Overseas Projects may be exposed to loss resulting from political events, Government action or economic issues causing cessation or interruption of payments. Cover can be arranged to indemnify the Lender for loan repayments falling due under the terms of the Project Loan or Finance Agreement.
Trade Credit Insurance can be a vital tool in securing Trade Receivable exposures as well as playing a crucial role in credit management and in the availability of and access to finance.
Trade Disruption Insurance covers events that does not directly affects your vessel or production unit, but which nevertheless reduces your income due to damage to onshore import or export terminals, pipelines, blockage of ports or waterways, force majeure events, weather, expropriation, change in legislation.
Non Honouring of Refund Guarantee Insurances functions as a backstop to collect stage payments on a shipbuilding contract that has been cancelled following a default event. Should the shipyard not refund the payments, and the Refund Guarantor also fail to respond, then within certain terms this insurance will pay.
A Trade Credit & Political Risk insurance can mitigate emerging market risk affecting revenues and coupon payment allowing Rating Agencies to agree to an enhanced rating of the issuance resulting in significant savings to the issuer and improved attractiveness to Investors.
The Lender’s interest may be jeopardized following a pollution event. Whilst P&I provides cover the Lender is exposed to the risk of loss of collateral should this initial cover prove inadequate. Mortgagee’s Additional Perils Pollution Insurance provides the Lender with protection against this risk.
Effective insurance on risks affecting security or collateral is a vital component in asset financier’s risk mitigation process. Mortagee’s Interest Insurance provides a level of additional comfort to the Lender that a loss will be indemnified in the event of the original insurance proving unenforceable.
Your shipbuilding contract is legally cancelled by shipbuilder, you recover your stage payments through the refund guarantee, but what about appreciation of assets, currency gains or losses, interest and projects costs? This is what an AICOR covers.
In politically unstable areas, there is risk of Expropriation and Confiscation. A London Arbitration Clause assists in managing the facets of these risks. Proceeds of the arbitration award still needs to be collected, the risk of non-collection is covered under A Failure to Honour Arbitration Award Insurance.
You have a loss which is collectible from your LOH policy. However, the market is dreadful and the event causes charterer to lawfully terminate the contract, so you loose the longterm value of the contract and must redeploy at lower rates or at worst lay up. A Contract Termination Insurance protects you against this and other risks.
A Shipbuilders Guarantee Insurance prolongs (on identical terms) the yard’s guarantee to the vessel’s first Special Survey. It also covers consequential damages that may be recoverable from a H&M or LOH policy and most importantly compensates time spent on repairing the error in design.
Shipowners and financiers are exposed to loss resulting from inability to remove or repossess assets or following default under a finance or lease agreement, causing a loss of the value of the underlying asset or the outstanding value of the finance. A Marine Transaction Political Risk Insurance covers this risk.
Trading overseas often brings the expectation of significant revenues and profits; however such rewards can only be realised on the successful conclusion of the contract or on full receipt of an Obligor’s payment. A Contract Frustration Insurance covers trade credit and political risks associated with a trade of this nature
The International Convergence of Capital Measurement Standards, more commonly known as Basel II potentially allows the application of Trade Credit & Political Risk Insurance (TCPRI) to achieve a degree of Regulatory Capital Relief through the use of Non-payment Insurance through its use as an acceptable Credit Risk Mitigant (CRM).
Expropriation Insurance can be an essential tool to protect a globally active corporation’s balance sheet integrity and shareholder value when investments and revenue streams are international.
Actions of Foreign Governments can lead to the loss of mobile assets or equipment held overseas including stocks, inventory, contractor’s plant and equipment or similar leased or mortgaged assets, including loss of rental or lease income. An Expropriation Insurance reduces these risks.
Financial Institutions and their clients are at risk of non-payment under Letters of Credit and other Instruments issued in accordance with UCP 600 and received from overseas Banks. Insurance can be arranged to cover the risk of default by the obligor bank as well as political issues preventing payment.
Under some circumstances insurance products can solve problems related to financing. One such example relates to the Guarantee required from the Bareboat Charterer under a Tax Lease Structure where a Trade Credit Insurance may be the crucial component in a financing package.
A Cyber Attack Buyback Insurance provides cover for cyber attack risks that are otherwise excluded under standard and paramount Cyber Risks Exclusions Clauses such as the Institute Cyber Attach Exclusion Clause (CL380).
Residual Value Insurance helps companies manage asset value risk by guaranteeing that a properly maintained asset will have a specified value at a future date. It is a product suitable for lessors unwilling or unable to take asset risk and from investors wishing to limit their downside.
Blocking and Trapping 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 pays an agreed daily indemnity.
If you are an organisation within the marine industry who handles large amounts of insurance documents and/or has the need to share this with a multitude of parties (banks, shipmanagers, investors, superintendents, fleet managers, accounting departments) our Electronic Client Portal may be the solution for you: “We will do the administration for you”.