(i) A risk s said to be held covered when an insurer agrees to insure it temporarily pending completion of insurance arrangements. (ii) A marine insurance policy may provide that some contingency which may or may not arise shall be held covered if it does arise, subject to notice and payment of an additional premium.
Insurance Encyclopedia
Held covered (H/C)
1. Cover granted by marine insurers under the ‘held covered’ clause to protect the insured in circumstances to which the policy does not otherwise apply such as when the vessel navigates in waters not permitted under the Institute Warranties. Cover is conditional upon the insured giving the insurer prompt notice and paying any reasonable additional premium. 2. Insurers may ‘hold covered’ pending completion of the formal arrangements.