Marine Consequential Loss Insurance
This type of insurance is usually available only for one-off movement of project cargo, plant/equipment and specifically provides protection in terms of the following losses:
- Actual Loss of Profits
- Anticipated Profits
- Additional Expenses
Note that these losses should be as a result of losses under the existing Marine Cargo Policy. It is rare for underwriters to provide alone standing marine consequential loss insurance.
Australia uses the EC Bruce wording as a market standard, with a few variations here and there. Pioneered by Eric Bruce in 1960 it was designed as a niche product from non-marine protection.
There are variations available for:
- Loss of Contract
- Loss of Market Share
- Delayed start-up Cover (fines and penalties, interest payments or standing costs)
Project or Equipment Financiers may display a appetite for this type of risk mitigation. The business may need alternative protection to shield them from penalty clauses inserted into contract terms.