CLASS II
Trade Disruption insurance for Cargo Vessels

Trade Disruption Insurance (TDI) is designed to cover the Loss of Revenue that a vessel may suffer. This covers a large number of perils, including:
Damage to vessel due to Hull & Machinery perils, such as machinery breakdown, collision, grounding etc, berth obstruction, extraordinary weather, stowaways on board.
We can also provide cover for Contractual Penalties where specifically agreed.
PERILS
Fire or explosion on land
A fire in a warehouse or in a loading facility could delay the loading or discharge of a cargo.
Extraordinary Weather
Severe and unseasonal weather conditions could result in a port being closed leaving vessels waiting in the roads.
Earthquake, heave, landslip, subsidence or volcanic eruption
Earthquake, heave, landslip, subsidence or volcanic eruption as was experienced at the port of Kobe in Japan, an earthquake can even shake the very foundations of a port facility, putting it out of action for some time.
Contact with aircraft, helicopters or similar objects
Although perhaps a remote risk this cover is normally given for objects falling and damaging the ship, but here it only has to be proven that there has been a delay to the ship or loading / discharging operations for the cover to respond.
Emergency port closure
This could be following an oil spillage where the port is closed whilst clean-up operations take place.
ITC Hull and Machinery perils
The daily insured sum for this peril is usually covered on a fixed and agreed basis. This is the cover you would expect to find under a traditional Loss of Hire policy.
Abnormal physical obstruction of a berth
Some vessels, like LNGs, require specific berths to operate from. An obstruction of such a berth, for example, a sunken vessel or part of a damaged crane could prevent the vessel from berthing.
Master's refusal
If the master of a vessel feels that entering a port might put the vessel in danger this might result in cargoes having to be transhipped or held up for long periods of time.
Acts of Piracy
Damage caused by pirates would be covered under another section of this cover. But if no damage occurred, but nevertheless the vessel was delayed, the policy would still respond.
Rescuing of refugees
Delays caused by a diversion to rescue refugees or other life saving operations.
Border closure
These perils could loosely be put together as political perils and for operators trading to some regions would give peace of mind.
Expropriation
These perils could loosely be put together as political perils and for operators trading to some regions would give peace of mind.
The imposition of import or export controls
These perils could loosely be put together as political perils and for operators trading to some regions would give peace of mind.
Arrest, restraint under quarantine regulations
A health authority could quarantine a vessel preventing any movement of cargo, thus delaying the vessel.
Infectious diseases or poisoning on board
Infections can be quickly spread through air conditioning or water supply plant and operators know to their cost that this can result in several days of trade disruption.
Illness, death or injury
Crew illness or a fatality on board could lead to the vessel being diverted.
Discovery of stowaways
Severe delays can follow as a consequence of stowaways being found on board.
Detention following actual or alleged pollution
Delays can be significant whilst an authority investigates a pollution incident.
Drug delay
Authorities across the world are clamping down on illegal drug imports, an innocent operator could end up with lengthy delays whilst a vessel is inspected or detained.
Oil or Chemical pollution
A spill in a busy shipping lane could result in the area being closed whilst the clean-up operation takes place.
Blocking and Trapping
This peril relates to warlike acts. This cover, provided on a limited basis, could give operators passing through the Suez Canal some peace of mind.
EXAMPLE OF CLASS II CLAIMS
Grounding damage
An insured vessel had laid by at an anchorage in order to embark some service engineers. Upon departure from the roads she touched bottom. The vessel was able to continue her voyage to her final destination. Sometime later internal damage to the double bottom tanks was found and subsequently an inspection in dry-dock revealed damage to virtually the whole length…
Read More »Steering problem results in grounding
An Assured operated a general cargo ‘coaster’ vessel trading in Northern Europe. Whilst on passage the master reported problems with the steering gear. After the vessel had discharged her cargo she was ordered to proceed to dry-dock for inspection and repairs. The inspection revealed damage to the vessel’s bottom in way of the bow thrusters and forepeak and also in…
Read More »Negligent navigation results in vessel striking a harbour wall
A large freight Ro/Ro ferry operating in Europe was manoeuvring to depart on a scheduled crossing when she struck the harbour wall, causing heavy damage to the starboard side of the vessel above and below the waterline. The vessel returned to the berth where temporary repairs were effected to enable her to sail to dry-dock for repairs. The vessel was…
Read More »Explosion in shipyard
An insured vessel was undergoing maintenance involving hot work in one of the double bottom tanks. An explosion occurred, causing considerable damage to the vessel; this was thought to be as a result of the build up of combustible gases inside one of the tanks. The actual source of the ignition was never determined but the negligence of the ship…
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