Time-on-Risk Premium

A time-on-risk premium is the war-risk additional premium charged for the period a vessel spends inside a Joint War Committee listed area, rather than as a single flat per-call fee. Underwriters commonly quote the AP for an initial block of seven days, with a further per-day rate for each day beyond it, so a slow transit or an extended stay raises the cost. The premium is a percentage of insured hull value; the seven-day convention aligns with the notice period for declaring a listed-area entry to underwriters under the policy’s held-covered terms.