In addition to a Hull & Machinery policy which covers physical loss or damage to the insured vessel, the Shipowner prefers to insure his Loss of Charter Hire / Earnings.  This policy is designed to mitigate the loss of revenue resulting from a major casualty impairing the vessel’s ability to trade and is akin to Business Interruption / Loss of Profit policy.  The Loss of Charter Hire policy generally follows perils of the Hull & Machinery policy, since coverage is dependent upon it being demonstrated that an insured peril was operational and as a result of this peril the vessel could not trade and earn charter hire.  The claim is for number of days the vessel was under repairs subject to deductible usually of fourteen days’ period.  The indemnity is generally fixed in the policy as a per day charter hire rate.