Specialist global insurer Hiscox has introduced a new security product in response to what it sees as a growing threat.
Called “Malicious Vessel Seizure,” the single-peril policy is designed for ships taken by a foreign government and will cover loss of hire costs as well as provide services from consultancy Control Risks. These include government liaison as part of the offered crisis management support.
“In recent months, we’ve seen growing political tension between the US and Iran which has recently culminated in the seizure of a British flagged tanker in the Strait of Hormuz,” noted Stuart Bisson, head of Guernsey and Europe for Hiscox Special Risks.
“We have developed Malicious Vessel Seizure to respond directly to incidents like this where a ship owner or charterer has their vessel seized by a nation state who may have taken the ship as a retaliatory measure.”
Meanwhile, Hiscox said no ships trading with Iran will be considered.