Some charterers and traders may be more risk adverse than others and part of the underwriting process is to assess and agree what level of deductible is required as part of the Tailor-Made and flexible cover from North.
Some charterers and traders choose to retain significant risk themselves, by taking deductibles as high as US$250,000, whilst others seek lower deductibles. Clearly, the premium rates which our underwriters seek will be affected by the level of policy deductibles and retained risk.
More typical deductibles for charterers and traders are;
- Cargo $10,000 to $50,000
- Damage to Hull $35,000 to $100,000
- All Other Claims $10,000 to $25,000
- Fees 25% Min $1000 and Max $10,000
Deductible levels and their combination are agreed as part of the underwriting and quoting process and are subject to individual negotiation – premium rating varies accordingly.