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Consequential loss, in the boat insurance glossary

Boat insurance term, area: Exclusions

Damage to a boat often brings further losses that are not physical damage to her: a repaired boat sells for less, a season is lost while she sits in the yard, charter income falls away. These are consequential or indirect losses. Hull insurance is designed to pay for repair or replacement, and wordings generally exclude loss of use, depreciation in value and loss of earnings. If someone else was at fault, such items may be recoverable from that party, which is a matter for the claim against them and not for your own hull policy.

What to check: Does your hull wording exclude loss of use, loss of market value after repair and loss of charter income, or is any of these included up to a stated amount? If you let the boat out, is loss of hire insured separately?

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