Loss of Hire Claims
A significant casualty will impair the vessel’s ability to trade with the result that its revenue stream will be adversely affected, perhaps seriously so in the event of lengthy repair.
The specialist policies designed to mitigate the effect on cash flow provide that coverage is dependent upon it being demonstrated that an insured peril has operated in terms of the standard wordings of a hull and machinery policy. This, together with the fact that complex issues can arise in quantifying the liability of loss of hire insurers, means that it is often preferable for an adjuster to state the claim in tandem with the hull claim.
RHL has a wealth of experience in dealing with loss of hire claims and the policy wordings available. Services include:-
• Investigation on cause of loss
• Analysis of the time recoverable under the policy and how the deductible period is to be calculated
• Recommendations for interim funding by insurers
• Provision of loss reserves
• Clear and concise reporting
Allied to our work in this field is our expertise in specialist passage money covers for cruise ship operators.
