Hull & Machinery (H&M) Insurance

What is Hull & Machinery Insurance?

Hull & Machinery (H&M) Insurance is a type of marine insurance that provides coverage for physical loss or damageto a vessel’s hull, machinery, and onboard equipment arising from marine perils and operational risks.

This insurance is essential for shipowners and operators as it protects the core physical assets of a vessel, ensuring financial security against accidents, damage, or unforeseen incidents during operations.

Scope of Coverage

Hull & Machinery Insurance typically covers loss or damage caused by:

• Marine perils

  • Heavy weather, storms, waves, and grounding

  • Collision with other vessels or fixed objects

• Accidental damage

  • Fire and explosion

  • Impact damage and structural failure

• Machinery-related risks

  • Damage to main engines, auxiliary engines, and machinery

  • Shaft, propeller, and steering gear damage

• General Average

  • Contribution to General Average sacrifices and expenses

• Salvage and Sue & Labour

  • Salvage costs to recover the vessel

  • Expenses incurred to prevent or minimize further loss

• Partial collision liability

  • Collision liabilities not fully covered under P&I Insurance

Key Benefits of Hull & Machinery Insurance

• Financial protection against costly vessel repairs or total loss

• Protection of capital investment in marine assets

• Reduced financial impact from accidents and operational incidents

• Support for business continuity and operational stability

• Compliance with contractual and regulatory requirements

Benefits for Shipowners and Operators

• Coverage for high-value physical assets

• Predictable cost management through insurance protection

• Faster recovery after incidents or damage

• Improved risk management and asset reliability

• Enhanced confidence in vessel operations

Why Hull & Machinery Insurance is Important

Marine operations expose vessels to continuous risks from weather conditions, mechanical failure, and navigational hazards. Without Hull & Machinery Insurance, shipowners may face significant financial losses resulting from repair costs or total vessel loss.

Hull & Machinery Insurance serves as a fundamental safeguard, ensuring that vessels remain protected, operational, and financially secure throughout their service life.

Hull & Machinery Insurance vs P&I Insurance

• Hull & Machinery Insurance covers physical damage to the vessel and machinery

• P&I Insurance covers third-party liabilities and legal responsibilities

Both types of insurance complement each other to provide comprehensive marine risk protection.

Our Role in Hull & Machinery Insurance

We assist our clients by:

• Facilitating Hull & Machinery Insurance tailored to vessel type and operation

• Coordinating with insurers, surveyors, and underwriters

• Supporting claims handling and technical documentation

• Integrating H&M Insurance with P&I and other marine insurance solutions

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