We are one of the leading independent providers of advice and services in respect of products and insurances available to ship finance institutions. Our experience encompasses design of bespoke insurance products to suit the varied circumstances and structures utilised in asset finance today.

Our objective is to facilitate marine and aviation finance by identifying insurance solutions such as refund and residual value guarantees. We are familiar with all existing risk transfer products and are constantly adapting these policies to address the range of exposures faced in asset finance transactions. We are a market leader in this field and have arrange for the placing of many circumstance specific contingent insurance policies for financiers through London Special Risks Limited, the Lloyd’s broker.

We also offer the service of reviewing the insurance arrangements of Borrowers on behalf of Mortgagees. The review includes vetting and approving that all insurances meet the Insurance covenants contained in the Loan Agreement and that the policies are underwritten by insurers with the necessary credit rating.

In essence the review seeks to confirm that the insurances that securitize the ship finance transaction provide cover against all loss or damage, not only to safeguard the security interest on the sound value of a vessel but also to ensure that all potential liabilities of the vessel are insured to sufficient limits so as to prevent a maritime lien being attached in favour of third party plaintiffs ahead of a Mortgagee.

The review will establish that endorsements are made to the policies in respect of Notices of Assignment and Loss Payable Clauses on the marine insurance policies with a commitment by the Borrowers placing brokers that such policies shall be maintained, giving due notice of renewal.  The P&I clubs within the International Group do not grant assignments but they must acknowledge mortgages on entered vessels and they do give a limited Loss Payable Clause.

LSR Consulting will undertake these responsibilities and issue formal reports.  This service is used by many shipping banks for all new loans, often for renewals and invariably by the lead agent for syndicated loans.