Trade Disruption Insurance for Passenger Vessels


CLASS III is designed to protect the assured against loss of passenger revenue. This may include loss of onboard sales or loss of shore-side excursion revenue and the day-to-day running costs of the ship such as the cost of the crew.

The named perils covered include Hull & Machinery perils such as machinery breakdown, berth obstruction, extraordinary weather, stowaways on board, illness.


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.


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.