Marine Hull & Machinery
Marine Hull Insurance is a cover, which protects the Shipowner from the physical damage to a vessel (the hull and machinery) caused by various marine risks. The most important perils covered by the policy are: perils of the sea, fire, explosion, theft, piracy, jettison, grounding, sinking, and physical damage caused by negligence of the master, officers or crewmembers.
Standard Hull & Machinery Policy is a named-peril cover. The insurance premium depends on a few factors, which mainly are: type of vessel, age of vessel, classification society, cargoes carried, trading area, experience of owners/managers, fleet size and the loss record.
- Hull and Machinery coverage protects the Shipowner in case of physical loss or damage to a vessel, including collision liabilities, which may be excluded from shipowners Protection & Indemnity (P&I) policy, sue and labour expenses, salvage and general average costs.
- Increased Value/Hull Interest coverage protects the Shipowner against actual total loss or constructive total loss of a vessel. This insurance works, where the hull value would be not be enough to cover the costs and expenses necessary to replace a lost vessel or ordering a new vessel.
- Loss of Hire coverage protects the Shipowners and fleet Operators from loss of vessel’s hire revenue as a result of vessel’s damage or breakdown.
- War Risks coverage protects the Shipowners Hull & Machinery vessel’s damage, which is a result of a war peril. Loss of Hire cover can also contain war risks, where shipowners lose their vessel’s hire revenue as a result of physical damage to vessel due to a war peril.