Insurance covering loss of charter hire when the vessel is off-hire due to a covered H&M peril.
Regulatory detail & full definition
Marine insurance covering the loss of charter hire when a vessel is off-hire because of a covered hull-and-machinery peril. Cover begins after a deductible period (typically 14–21 days) and runs for a maximum of 90, 180, or 365 days. The Norwegian Marine Insurance Plan and the ABS LOH clauses are the standard wordings. LOH is typically taken alongside H&M to protect cash flow when a vessel is in drydock for casualty repairs; bunker costs, supplies, and crew wages during the off-hire are not covered by LOH but by the H&M's sue-and-labour clause if applicable.