Believing that piracy will be a continuing problem in 2009, Chicago-based insurance broker Aon Corp. has hoisted a new policy for charterers, shipowners and cargo owners to cover the losses of earnings from ships detained by the scurvy dogs.
The International Maritime Bureau said 199 incidents were reported to its Piracy Reporting Centre in the first nine months of 2008, including 83 in the third quarter. In the same period of 2007, 198 incidents were reported, up 14 percent from the first nine months of 2006.
But pirates are getting more aggressive.
Thirty-one vessels have been hijacked in the 2008 period, more than double the number in 2007. And 581 crew members have been taken hostage, up from 172 in last year's period.
Physical loss and damages to the ship by pirates have been covered by hull and war clauses, and seafarers' ransom can be dealt with by specific coverage.
But there has been a void in coverage for the financial impact of business interruption or loss of earnings, said Peter Townsend, executive director for marine operations for Aon in London.
"What's not covered is the time delay," he said. "Anything that's time critical, our policy will cover."
Take a hijacked oil tanker. The price of oil might have changed from the time the vessel was captured until it was released, and the policy that Aon arranges will cover the difference in prices.
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