What Is H & M Insurance? Understanding Hull and Machinery Insurance

Hull and Machinery (H&M) insurance is a type of coverage that is essential for the shipping industry. It provides protection for shipowners against the costs of repairing or replacing their vessel if it becomes damaged or lost due to certain risks.

Coverage Details

The vessel is insured to its full value under this insurance, and it compensates for a variety of incidents including:

  • Total loss
  • Salvage
  • Partial damages
  • Collision liability
  • Engine damage
  • The vessel’s contribution to general average

H&M insurance covers physical damage to the ship, machinery, and equipment caused by perils while the vessel is in the water. It also extends to include on board equipment such as propulsion and auxiliary machinery, cargo handling, and navigation equipment.

Additional Insurance Options

Owners can also opt for additional types of insurance to further protect their asset:

  • Increased value insurance
  • Loss of hire insurance

These additional insurances provide a more comprehensive safety net in the event of an incident during a maritime venture.

Interaction with Other Insurances

H&M insurance works in conjunction with other types of insurance, such as protection and indemnity insurance, especially concerning collision liability and contact damages. This ensures that shipowners have a full range of protection to cover various aspects of maritime risks.

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