Loss of Management Fee Insurance
Loss of management fee covers the non payment of management fees as a result of the termination of a ship management contract through actual or constructive total loss of the ship under management. Some ship management contracts will provide payment for a short period of continued employment for the manager but will not replace the lost fees beyond that work, which is what the ITIC loss of management fee insurance has been designed to cover.
High and dry
A ship under management ran aground off the coast of the UK during bad weather. Salvors and other industry experts spent several weeks trying to refloat the ship, however in the end the ship was declared a total loss by the hull underwriters. The ship manager, who had ITIC’s loss of management fee insurance had their fees re-imbursed by ITIC.