To mainstream and to Not mainstream? Yes! (2 / 2)

For Your Benefit!

So, whilst mainstream covers will protect the state of your ship or her liabilities at the time of an incident, “not mainstream” will help with the really unexpected, i.e.: the riskiest.

“Not mainstream”, therefore, is not a hugely appealing (euphemism) risk for a provider and therefore avoided through exclusions and limitations, which again is fully understandable given the huge capacity provided for the mainstream operational events.

Through this trickle down process,

the highest risks basically stay with the owner of the ship.

It can be, and usually is, insured against via separate “Not mainstream” policies like war risks, K&R insurance, loss of earnings etc…

But of course, they also have their own exclusions and limitations and leave the most volatile risks to the owner, who will often find comfort from being left with the highest impact risk segment in the huge available capacity he can potentially claim normally up to 90 or 180 days compensation (after 14/21 days deductible).

The available capacity

dwarfs the highest risk layer in quantum.

Does it dwarf the impact in case of a small to medium event, i.e.: the most common type that occurs?

No, of course not.

Both matters, because depending on the market level the first couple of weeks can cause lasting damage to finances and efficiency perception.

"We just wanted to point out the importance of being able to control when your losses stop."

Check out one of our earlier articles on this topic, here.