WAR Risk Insurance

War risk insurance covers loss from war, civil war, revolution, capture, seizure, mines, and strikes or terrorism, perils that standard hull and cargo policies exclude. The Institute War and Strikes Clauses (Hulls) and the Institute War Clauses (Cargo) 1.1.2009 provide the market wording. Underwriters list high-risk and listed areas (such as parts of the Gulf of Guinea, the Black Sea, and the southern Red Sea) for which an additional premium, the AP, is charged per transit, often quoted as a percentage of the insured hull value for a seven-day call. Cover responds to the actual or constructive total loss of the vessel and to detention beyond a stated period (typically 12 months) under a blocking and trapping clause.