’As global trade continues to expand, this new facility offers clients a rapidly available layer of insurance cover,’ says chief executive
Broker Marsh has launched a new port blockage insurance facility covering shipping ports and terminals globally.
The facility has been designed to provide cover for loss of revenue caused by third-party accidents.
This includes a vessel sinking in a channel, a vessel impact resulting in a waterway closure or a natural catastrophe.
It will offer capacity of $50m (£38.4m), with higher limits being available on a case-by-case basis.
The facility is backed by a panel of Lloyd’s of London and London market A+ rated insurers.
Louise Nevill, chief executive of UK marine at Marsh Specialty, said: “As global trade continues to expand, this new facility offers clients a rapidly available layer of insurance cover to protect operations and recovery in the event of port and terminal disruptions.”
Reason for launch
Marsh explained that the facility had been created following the collapse of the Francis Scott Key Bridge and subsequent disruption at the port of Baltimore.
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The broker noted that “port blockage is a growing concern” for businesses operating in the maritime industry.
Port blockages can result in disruptions to global supply chains and loss of revenue.
In turn, the facility’s wording can be customised to meet the specific needs of individual clients, meaning that coverage can be aligned to specific risk exposures and operational requirements.
Nevill said: “Port blockages around the world are increasing with frequency and severity and are resulting in debilitating consequences for businesses involved in international trade.”
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