Marine Hull and Machinery Insurance
Hull and machinery insurance is an important part of overall marine insurance. It is specifically designed to cover expenses arising from damage to a ship’s hull(the main body of the ship) plus any fixtures attached to it.
Hull and machinery insurance helps vessel owners protect themselves financially against physical loss or damage for not only the hull of the ship but also the vessels fittings, its machinery, installed equipment and disbursements. The policy can also be extended to include liability for damage to third parties and third party property.
Why you should consider it.
Just as the comprehensive coverage in auto insurance protects the insured individuals against physical damage to their cars, so does hull and machinery insurance provide physical damage protection for the ships or vessels and the machinery which is part of them.
Since the soundness and normal operation of the hull and machinery of a ship is key to the safe transportation and delivery of any cargo or freight, it is highly advisable that ship owners purchase hull and machinery insurance.
Here are some vessels that should carry this insurance
- Oil and gas tankers
- Container vessels
- Bulk carriers
- Passenger vessels
- Tugs and barges
- Offshore support vessels
- Fishing vessels
- Mega yachts
What can it cover?
Marine Hull insurance protects vessels against damage and destruction of hull, machinery, fittings and freight. The range of risks such as fire or explosion, sinking, capsizing, derailment, burglary, jettisoning, piracy, earthquake, volcanic eruption or lightning is covered by the policy. Damage due to collision with other ships, aircraft or other vehicles on land or sea is also covered.
What isn’t covered?
Marine hull and machinery insurance have certain common exclusions such as wreck removal, wear and tear, malicious damage, damage due to a nuclear attack or radioactive contamination and pollution. Damage due to wilful or intentional activity is also excluded from the policy.
In addition to these, and as with any insurance, there are limits and exclusions that apply and there may also be a deductible, excess or limits on this type of cover so check with your GIBA insurance broker.
Please talk to us about what may or may not be appropriate for your coverage