What is hull insurance
Hull and machinery insurance is one of the main forms of marine insurance and covers a range of damages on a vessels hull, machinery and equipment. Generally, hull insurance provides vessel owners with a level of confidence and security in operating their vessel on international waters as they are protected against a range of risks of working at sea. Depending on the type of vessel you own and its intended activity on the water i.e. to carry passengers and/or cargo, you will require a specific type of marine insurance. It is therefore advisable to seek the assistance of a professional consultancy firm to guide you on the most appropriate types of marine insurance to obtain.
For more information on the hull and other forms of marine insurance available to you, please click on the following link to view our Marine Insurance service page.
Hull and machinery insurance explained
Hull and machinery insurance, as mentioned, it one of the most widely required forms of marine insurance for all operational vessels on the sea. This is primarily because of the if a vessels hull or onboard machinery and equipment are damaged, the vessel effectively cannot operate and make money. By obtaining the applicable hull and machinery insurance the level of risk associated damage to vessels is lowered as repair, maintenance and compensation will be covered by insurance.
Vessel owners are fully aware of the vast amount of dangers and risks involved when operating within the marine industry and as such it is imperative to seek the necessary hull and machinery insurance to ensure the vessel is protected and operational at all times.
Essentially, all physical damage to a vessel can be covered by hull and machinery insurance, which extends to recoveries and losses at sea. Although many vessel owners will employ a certain level of hull insurance, whether it is to cover all risks, limited conditions only, or total loss at sea.
The main risks covered under hull and machinery insurance include;
- Total loss in terms of actual or constructive loss of the vessel.
- Damages to hull, machinery and equipment onboard the vessel
- Salvage and applicable charges
- Legal costs and labor cots
- Costs for collision defense and attacks
- Dry docking expenses
- Costs for marine surveys to assess damage of potential damage
Print This Post
