Aon launches pirate policy

by Richard Kilner

Story link: Aon launches pirate policy

Aon has launched a new insurance policy to protect charterers, shipowners and cargo owners from losses ensuing from a ship being taken over by pirates.

The media have recently taken notice of the increasingly dangerous piracy, particularly off the Horn of Africa where Somalian pirates seize upon ships of ever greater size.

In the first 8 months of the year, over 50 ships were attacked and 32 hijacked, with ships that are captured kept for an average of two months, damaging both charterers and cargo owners.

Aspects pertaining to piracy are covered by differing policies, but there has been a gap in the market which Aon is now seeking to address.

The new policy caters to charterers who pay for a vessel that is detained by pirates, shipowners who may see contracts cancelled due to piratical intervention, cargo owners and any other party who may have an insurable interest.

It is a stand alone policy that is effective from the first day of an attack (with no deductible).

Aon’s Peter Townsend, head of marine hull, has stated that the new policy was formulated to address the insurance needs of those at risk around the Gulf of Aden/Horn of Africa.