Continuation clause. Hull Time policies can contain a “continuation” clause. As a rule, time policies are made for a maximum of 12 months, but obviously it is impossible to judge in advance whether the vessel will be at sea or not on expiration of the policy.
For that reason the following clause is inserted in time policies:
“Should the vessel on expiration of this policy be at sea or in distress or at a port of refuge or port of call she shall, provided previous notice be given to the Underwriters, be held covered at a pro rata monthly premium, to her port of destination” (Clause 2 of ITC (Hulls) 1983).