Loss of Hire
In the event of a damage to the ship and its consequential idle time without generating any income, certain costs such as crew wages and repayment of loans continue to fall due.
For this scenario it is advisable to buy Loss of Hire insurance, in order to cope with the requirements of money lenders, ensure planning dependability and hedge losses. Loss of Hire insurance is often covered on Scandinavian NMIP terms, but German conditions are also available. Depending on the required amount and duration of the daily compensation, the payment of a fixed and agreed daily amount may be paid to the ship owner, subject to deductibles.The usual deductible period is 14 days and the payment period may be between 60 and 180 days.
The deductible may be limited to only a few days when buying additional deductible insurance.