Norwegian Hull Club (NHC) has launched protection for two high-profile, emerging risks. Its new product is called “Damage To Marine Scrubber Systems: Additional Costs and Loss of Hire Insurance”.
The Club said that the cover was a “direct response” to requests from clients and brokers wanting insurance options as January 1st 2020 approached, “bringing with it the IMO’s global limit of 0.5% sulphur in marine fuels”.
The Club said that the plan would be triggered by damage to a vessel’s scrubber system. If an owner must switch from a cheaper Heavy Fuel Oil (HFO) to costlier, compliant Low Sulphur Fuel Oil (LSFO), the NHC product will cover the difference in fuel costs in the period up to first available repair.
An optional add-on is cover for additional lump-sum costs for the cleaning of tanks and machinery needed to switch fuel, removal of HFO and net deviation to port, plus a limited standard LOH cover for scrubber damages only.
NHC also announced that it had increased the annual aggregate limit from $300m to $500m in its Cyber-Clause 380 buy-back. The Club said that this was in response to the developing needs of its clients regarding cyber risk.