Marine and political risk insurance
War risk insurance: how it works for ships and cargo
What marine war risk insurance covers, why it is separate from standard hull cover, how listed areas and notice of cancellation work, and what 2026 has changed.
Guide
Marine and political risk insuranceLast updated
3 minute read
By Zed Three analysts
Short answer
War risk insurance covers ships and cargo against perils that standard marine policies exclude, such as war, mines, strikes, terrorism, piracy and seizure. Owners buy it separately, and when a ship enters a high risk area listed by the Joint War Committee, underwriters can charge an additional premium for that voyage.
Last updated
What it covers and what it does not
Hull war policies typically cover physical loss or damage from war perils, confiscation and related risks, while protection and indemnity war cover deals with crew and third party liabilities. Cargo owners buy war risk cover under separate cargo clauses. Policies carry exclusions, notably for war between the five major powers and for nuclear perils.
Listed areas and notice of cancellation
The Joint War Committee in London publishes listed areas where ships must notify underwriters. The current list, JWLA-035 of Sept 16, 2026, includes the Gulf states, Iran, Yemen, the southern Red Sea, the Black Sea and parts of West Africa. Underwriters can cancel war cover at short notice, commonly 7 days, to reprice it.
What changed in 2026
Several P&I clubs cancelled war cover for charterers and other non-mutual liabilities in March 2026 and later offered buy back cover. Additional premiums for Gulf tanker transits rose from about 0.25% of hull value before the war to 6% to 10% in early October.
What happens next?
We assess it is likely that Gulf war risk premiums stay well above pre-war levels through the end of the year.
We assess it is unlikely that the Joint War Committee narrows the Gulf listed area before Dec 31.
Likelihood ranges are Zed Three editorial judgments as of Nov 2, 2026, not advice.
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Related chokepoints
Chokepoint explainer
Strait of HormuzThe Gulf's only sea exit, between Iran and OmanRead the explainer →Chokepoint explainer
Bab el-Mandeb StraitThe Red Sea's southern gate, between Yemen and DjiboutiRead the explainer →Chokepoint explainer
Bosphorus and the Turkish StraitsThe Black Sea's only sea link to the worldRead the explainer →Related country risk assessments
Frequently asked questions
Is war risk insurance included in marine insurance?
No. Standard hull and cargo policies exclude war perils, so war cover is bought separately or as an add on.
What is a JWC listed area?
An area the Joint War Committee considers higher risk for war, piracy and terrorism; ships entering it must notify underwriters, who may charge an additional premium.
Who sets war risk premiums?
Individual underwriters and brokers negotiate them. The Joint War Committee lists areas but plays no role in pricing.
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