Loss of Hire insurance – insurance against the risk of loss of freight/cargo income covers the loss of income on board a vessel due to an insured event, which is covered under Hull and Machinery (H&M) insurance.

The amount of insurance is the agreed daily compensation, which must correspond to the average actual income of the shipowner. An exception is total loss of the vessel, in which case the Loss of Hire insurance does not apply. In this case, the risk of loss of freight/revenue can be covered by Increased Value Insurance.