Marsh launches Charter Default cover for ship owners
With ship owners becoming increasingly concerned about the financial consequences of a rise in ship charterers filing for bankruptcy, Marsh has announced the launch of Charter Default.
Backed by insurers and a leading investment bank, the offering provides a mix of fixed recovery guarantee and credit insurance, tailored to the shipowner’s requirements.
The product covers both outstanding debt at the time of an insolvency and the loss of future revenue, for a set period.
It can therefore de-risks important revenue streams, allowing ship owners to attract better terms from lenders by reducing counterparty credit risk.
Marsh’s global marine practice managing director, Nick Roscoe, comments: “This product provides a secure framework for owners to grow their business with new clients and in new economies.”
He adds: “Our Charter Default product is a real financial market innovation … it not only will protect owners’ balance sheets but will also provide additional comfort for their key business stakeholders.”
Category: Business Insurance News, Marsh News
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