Risk & markets
War-risk premium
Extra marine-insurance charge for sailing through a designated high-risk or war zone.
What is War-risk premium in shipping?
An additional premium — quoted as a percentage of a vessel's insured hull value, per voyage or per seven-day call — that owners pay on top of standard hull cover when transiting an area the insurance market lists as a war or high-risk zone (for example the Red Sea or the Strait of Hormuz during a crisis). Rates move quickly with the threat picture and are a real-time barometer of perceived danger.
Educational reference only — verify operational guidance with UKMTO, MSCHOA, your flag state, P&I club and legal counsel.
Related terms
- Chokepoint — A narrow, strategically critical stretch of water that concentrates global shipping.
- P&I (Protection & Indemnity) club — A mutual association that covers a shipowner's third-party liabilities.
- Sanctions / SDN list — Government measures restricting dealings with named entities, vessels or cargoes.