Cargo and Specialist Vessels
This is a general cover that indemnifies an owner in respect of loss of earnings and additional losses arising out of delay to vessels carrying cargo or engaged in specialist operations.
How does Transmarine’s TDI cover differ from standard loss of hire insurance?
At the heart of Transmarine’s cover for cargo and specialist vessels is compensation for net loss of earnings as a result of damage to the insured ship’s hull and machinery. In this respect it is similar to conventional loss of hire insurance. However, Transmarine’s insurance also provides recovery for loss of income due to delay caused by up to a further 22 perils, including fire and explosion on land, extraordinary weather and berth obstruction.
An assured can also recover additional costs associated with cargo storage and handling following an incident, including substitute charter hire. Subject to approval by underwriters, an assured who may be exposed to specific contractual penalties could recover such costs following the occurrence of an insured peril.
By way of illustration, a traditional loss of hire policy would not generally cover the following scenarios:
- Extraordinary weather affecting the insured vessel’s itinerary.
- An earthquake or volcanic eruption at a port of loading or discharge which could lead to loss of revenue or additional costs and expenses.
In both of the above scenarios Transmarine’s cover indemnifies the assured for the trade disruption arising from the incident. Our comprehensive cover can be relied upon to support vessel owners and operators in times of crisis.
Diversity of vessels covered
Transmarine provides Trade Disruption Insurance cover for a wide variety of vessels including offshore support, heavy lift, general cargo, containers and tankers.
Understanding your business
We understand the needs of our assureds and in particular their cash flow requirements. Our cover seeks to minimise those cash flow risks by providing substitute income for periods when the vessel is unable to operate.
Up to USD 7.5 Million
We can provide a limit of liability up to USD 7.5 million for TDI cover.
The excess and policy terms are structured to suit the assured’s individual needs.
Hull & Machinery Perils
This is the cover you would expect to find under a traditional loss of hire policy and responds to a vessel’s loss of earnings following the occurrence of a hull and machinery incident.
- an engine breakdown
- collision with another vessel
- the insured ship running aground
- rudder or propellor damage
- fire or explosion on board the insured ship, its cargo or bunkers
These relates to incidents occurring on board the insured vessel or delays arising from the insured vessel.
Crew illness or a fatality on board could lead to the vessel being diverted from its intended itinerary. This is particularly pertinent for vessels operating in more remote areas.
Infections can quickly spread through air conditioning or water supply systems impairing the crew’s ability to operate the vessel.
The arrest or detainment of a vessel under quarantine regulations will inevitably lead to a loss of revenue.
Severe delays in port and additional costs can be incurred as a consequence of stowaways being found on board.
Delays can be significant whilst an authority investigates a pollution incident, which is alleged to have emanated from the insured vessel.
Oil or chemical pollution emanating form any other vessel or property. This could result in a port or waterway being closed.
Authorities across the world are clamping down on illegal drug imports; an innocent operator could end up with lengthy delays whilst the insured vessel is inspected or detained.
If the master of the insured vessel considers that entering a particular port might put the vessel in danger this could result in delays to the vessel’s schedule.
In the Mediterranean this has become an all too familiar event and delays caused by a diversion to rescue refugees or other life-saving operations could result in loss of revenue to the assured.
Severe and unseasonal weather conditions could result in a vessel being diverted to a port of refuge.
If the insured vessel is reliant on the delivery or discharge of a cargo utilising a third-party conveyance which suffers a casualty, the cover would respond to the resultant delay.
Delays suffered by the insured vessel, which are caused by acts of piracy.
The closure of a port or waterway following a warlike act could cause significant disruption resulting in loss of earnings and additional costs and expenses.
These relates to incidents occurring shoreside or delays arising shoreside.
A fire at a load or discharge terminal could result in significant delays to a vessel whilst alternative arrangements are made.
Significant disruptions to shipping have occurred following earthquakes damaging a port’s infrastructure as well as vessels needing to divert away from an active volcano.
By way of illustration, this could be following an oil spillage leading to the closure of the port whilst clean-up operations take place.
The obstruction at a berth or the approaches to it could result in delays discharging cargoes, especially when a vessel cannot use alternative berths that do not have shoreside cranes or the required specialist discharge facilities.
Political actions and actions taken by official authorities could have a serious impact on a vessel’s operations.
The closure of a port or waterway may occur if climate activists blockade a port, this may result in the vessel having to deviate to offload cargo.
We have a global network of external correspondents and suppliers that can assist in dealing with any claim or casualty. We have access to surveyors, loss adjusters and maritime experts and professionals who can be called upon when required depending on the nature of the matter.
Our offices in London, Dubai and Shanghai who provide “round-the-clock” assistance for major casualties where time is of the essence.