Hull and machinery
Insurance for damage to the ship itself, its hull and machinery, distinct from the liability covered by P&I clubs.
Hull and machinery insurance pays for damage to the ship itself: its hull, machinery, and propulsion and navigation equipment. It indemnifies damage from perils of the sea, grounding, collision, fire, as well as certain machinery breakdowns, depending on the scope of clauses purchased. It is the foundation of marine insurance for the vessel, distinct from cargo cover which protects the goods and from protection and indemnity club cover which handles the shipowner's liability toward third parties. The high value of modern ships, giant container vessels, LNG carriers, cruise ships, concentrates considerable insured amounts, and the increasing size of units raises potential loss severity. For the underwriter, the analysis bears on the ship's age and condition, the quality of the owner and technical management, the navigation areas and the operating profile, all determinants of the frequency and severity of damage.
Textbook case: a container ship suffering a major machinery breakdown at sea falls under hull and machinery cover, which funds the repair of the propulsion unit.
hull and machinery, H&M, marine hull, hull cover
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