Loss of attraction

Extension to a business interruption policy covering loss of gross profit due to damage to a nearby attraction that draws passing trade to the business. It is an external dependency. Fire damage at the main store in a shopping mall will reduce sales in neighbouring shops.

Loss of documents

Documents vary in nature and value. Material damage policies provide cover only in respect of the cost of the materials and the cost of labour in reinstating the documents. There is no cover for consequential loss. Professional indemnity policies cover ‘all risks’ on the insured’s own documents and those for which the insured is responsible. They also cover the insured’s legal liability for loss of documents. See COMPUTER SYSTEM RECORDS.

Loss of engagements

The marine equivalent of ‘loss of use. A shipowner, who loses the use of his ship through an insured peril insures for ‘loss of engagements’.
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Where a ship owner is deprived of the use of a ship through an insured peril, e.g., collision, the loss consequential on loss of engagements is insurable.

Loss of hire insurance

Insurance for shipowners who may lose a charter as a result of a casualty. The insurance pays an amount per day for a certain number of days per year (e.g. 90, but could be 360) once a ‘time deductible’, e.g. 14 days, has been exceeded. Cover follows the International Hull Clauses but excludes total loss.

Loss of Hire Policy for Marine

This covers loss of hire suffered by the ship-owner if the vessel which is given on charter is laid-up for repairs following a casualty covered under terms of the Hull and Machinery Policy. The conditions applicable are those covered by Institute Time Clauses-Hulls, but excluding Total Loss. It is usual to stipulate that repairs must be commenced within 12 months of the expiry of the policy.