Battery Performance – Loss of Hire: peace of mind for green-technology investors
Through innovative, enabling insurance solutions, Norwegian Hull Club helps its clients and members make choices for a greener future. Combined with exceptional levels of service and support, The Club’s goal is to be a trusted companion to its clients on their sustainability voyages.
In line with this approach, Norwegian Hull Club has launched a world first to support its clients in their Environmental, Social and Governance (ESG) / sustainability efforts. Battery Performance – Loss of Hire (BP – LoH) cover protects the assured against loss of income arising from time lost due to rectification of a performance issue with a vessel’s battery system. It is subject to the Nordic Marine Insurance Plan of 2013 (version 2023) and, as well as being an optional addition to normal Loss of Hire cover, it is also available as a stand-alone product
With this pioneering product, Norwegian Hull Club’s clients have the reassurance of a cover that will help them if there is a gap between a battery’s quoted and real-world performance levels. Without the BP-LoH cover in place, the negative impact of Loss of Hire situations due to battery repair or even replacement – especially for businesses that rely on battery-powered technology - could be considerable. By protecting against the consequences of such an outcome, BP-LoH helps de-risk the investments necessary for the decarbonization of the shipping industry.
This product is the first in a planned series of covers from Norwegian Hull Club specifically designed to enable owners to embrace alternative propulsion methods with confidence.
KEY BENEFITS FOR THE ASSURED
- Peace of mind - BP-LoH protects against the consequences of real-world shortfall in quoted battery performance;
- ESG enabling / sustainability promoting – BP-LoH enables owners to best harness their ESG efforts by de-risking their green-technology investments, necessary for a carbon-zero future and its upcoming regulatory requirements;
- Dependability – clients can rely on a product delivered by their trusted, committed partner Norwegian Hull Club. In addition to the deep technological understanding and extensive underwriting and claims handling experience The Club possesses, this cover has been created in collaboration with Munich RE - one of the world’s leading risk management and marine-risk carriers.
- Committed support through The Club’s Claims department, devoted to handling critical situations and claims in the most professional way possible.
Atle Fjeldstad, Chief Underwriting Officer at Norwegian Hull Club, said: “Battery Performance – Loss of Hire is a unique product, developed in collaboration with Munich RE, a global leader in risk management.
"We know that many owners and operators face ‘unknown waters’ when it comes to meeting decarbonization requirements. That’s why we have leveraged our experience founded upon typically handling over 3,000 claims a year to develop this unique product, while also harnessing Munich RE’s exceptional risk management expertise.
“With Battery Power – Loss of Hire, we are helping to eliminate the uncertainties that come with adopting the new technologies that are needed as the industry – and the world – moves towards zero-emissions. As such, we believe our valued clients and members will be able to navigate the ‘unknown waters’ ahead with confidence, while improving their operations and optimising their ESG efforts.”
Discover more about Battery Performance – Loss of Hire, including key contacts, on the dedicated product page here.