The time occupied by repairs can amount to a significant loss for the shipowner. Freight rates are lost since the vessel is off-hire and capital and operational costs are still due. Loss of Hire cover is designed to reduce this loss. Some casualties may result in a significant period off-hire and loss of earnings in the freight market. These losses can be heavy. If the vessel is on time charter, the charterer will put the vessel off-hire. The owner must still meet crew and capital costs. This exposure represents an insurable loss.