Marine Hull and Machinery Insurance protects the insured vessel or fleet against Marine against physical damage caused by a peril of the sea or other covered perils while the physical the vessel is in transit over water. Although the most commonly insured vessels are vessel those operating in the ocean or at sea, Hull and Machinery Insurance can cover vessels that work in any kind of waterway, such as tugboats, barges, floating machinery, and even oil rigs which operate in coastal areas.
Hull and Machinery Insurance policies can be written to cover a single vessel or the whole fleet of a shipowner.
A very important provision of Hull and Machinery Insurance is the Running Down clause, also referred to as “the Collision Liability” provision. As the name suggests, it protects the vessel owner against legal liability arising from the owner’s vessel colliding with another ship and damaging its property or cargo.
It is very important to note that the Collision Liability clause does not apply to legal liability arising out of bodily injury or death, or property damage to fixed installations such as piers. If you wish to get insurance against this kind of liability, you will need to purchase Protection and Indemnity coverage.
Common perils covered by Hull and Machinery Insurance are:
Perils of the seas, rivers, lakes or other navigable waters
Fire or explosion
Violent theft by persons from outside the Vessel
Jettison
Piracy
Breakdown of or accident to nuclear installations or reactors
Contact with aircraft or similar objects, or objects falling there-from, land conveyance, dock or harbour equipment or installation
Earthquake, volcanic eruption or lightning
Accidents in loading, discharging or shifting cargo or fuel
Bursting of boilers, breakage of shafts or any latent defect in the machinery or hull
Negligence of Master, Officers, Crew or Pilots
Negligence of repairers or charterers
Coverage variations and extensions include:
Limited Terms or Total Loss Only
Actual Total Loss to the Vessel
Constructive Total Loss to the Vessel
General Average Contribution
Salvage Award
Salvage Charges
3/4th Collision Liability
Sue & Labour Charges
What is NOT Covered
General Marine Exclusions:
Loss or damage due to willful act of negligence and misconduct
Any loss or damage due to delay
Loss or damage due to improper packing
Financial default or insolvency of owners, charterers, managers or operators of the vessel
Loss or damage due to war, strike, riot and civil commotion
Loss or damage arising from the use of nuclear fission, weapon, or any other radiation force
1/4th of collision damage
Removal of wreck
Contamination due to radioactive rays
Attack or damage from biochemical, chemical, or electromagnetic weapons
As Insurance is a complex subject, please talk to us now for professional advice and to make sure your level of coverage is appropriate, adequate, and sufficient to your requirements.
The List of Risks or the range of insurances available is not exhaustive, if there are any particular risks that are possibly unique to your type of business and/or for any specific or special requirements, please seek our assistance and guidance.