Loss of Hire Insurance

Loss of hire insurance pays the shipowner a fixed daily indemnity for time the vessel is off-hire or out of service because of physical damage that is recoverable under the hull and machinery policy. Cover starts after a deductible period stated in days, runs to a maximum number of indemnity days per casualty and per policy year, and is written on wordings such as the ABS 1/10/83 Loss of Hire clauses. It bridges the earnings gap that hull cover does not address, since hull insures the asset, not its income, and it is distinct from charterers’ off-hire remedies.