Hull insurance is one of the main types of marine insurance policies available in the marketplace. It covers a broad range of damages on a vessel’s hull, machinery, and equipment, which in turn gives the vessel owner a level of confidence and security in operating their yacht/ship on international waters. The type of marine insurance policy sought will depend heavily on your intended use for your vessel, for example, if you intend to carry cargo or passengers, you must obtain the correct insurance policy. All vessel operators however, should obtain hull insurance as an added safety measure.
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Hull and Machinery Insurance explained
Hull and machinery insurance is one of the most widely required forms of marine insurance for all operational vessels. This is primarily due to the fact that is a vessels hull or onboard machinery and equipment are damaged, the vessel cannot operate and generate any form of income.
By obtaining the applicable hull and machinery insurance, the level of risk-associated damage to the vessel is significantly lowered as repair, maintenance and compensation is covered by the insurance policy.
The main risks covered under hull and
machinery insurance includes, but is not limited to;
- 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 costs
- Costs for collision defense and attacks
- Dry docking expenses
- Costs for marine surveys to assess damage of potential damage
Essentially, all physical damage to a vessel can be covered by hull and machinery insurance, which extends to recoveries and losses at sea. Vessel owners have the choice to employ a certain level of hull insurance, whether it is to cover all risks, limited conditions only, or total loss at sea, giving them complete control over their liability and financial commitment to their yacht.
Vessel owners must acknowledge that there is are many 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. The marine insurance market is a particularly competitive one, and so it is advisable to enlist the assistance of a consultancy firm to act as an introducer between you and a reputable marine insurance broker.