HULL & MACHINERY INSURANCE

It is the line of insurance that covers hull, machinery and equipment installed on the vessel against the various perils during the voyages it runs between the ports, whilst operating in the ports, upon anchorage or during their repair or maintenance processes on dockyards.
This insurance is designed to indemnify the shipowner against loss of or damage to ship and liability of shipowner arising from maritime perils which include perils of the sea and other similar perils for a specific period of time, mostly one year.
The policy insures vessels for losses or damages resulting from:

• Perils of the sea such as heavy weather stranding or collision

• Fire

• Lightning

• Explosions

• Loading or discharging cargo

• Going on or off dry docks and marine railroads

• Negligence on the part of the captain and/or crew

• It also provides the insured vessel with liability protection against damage to other vessels in the event of a collision, usually 3\4.