Hull and Machinery insurance covers physical damage to the ship or vessel itself, including its machinery and equipment onboard. This coverage is essential for shipowners, protecting against hazards such as losses due to accidents, collisions, fire, piracy, and natural disasters, or other unexpected occurrences.
It is designed to provide financial protection against losses that may occur while the vessel is in transit or in port. The policy covers the vessel itself, any cargo it carries, and other property such as tools, equipment, and crew. It also provides protection for liabilities arising out of the ownership or operation of the vessel. H&M insurance works by covering the costs of repairing or replacing damaged property. It also covers any medical costs for injuries to crew members, passengers, or other third parties who may have been affected by the accident.
There are several types of H&M policies available. These include total loss only (TLO), voyage specific, all risks, and named perils. Each type of policy provides different levels of coverage and varying premiums depending on the type of cargo being shipped, the size of the vessel, and the location of the voyage. When choosing an H&M policy, it is important to consider the size of the vessel, the type of cargo being shipped, and the location of the voyage.
