Hull and machinery insurance

Hull and machinery insurance indemnifies the shipowner for physical loss of or damage to the vessel, its machinery, and equipment, and customarily covers a proportion of collision liability under the running-down clause. Cover is written on standard wordings such as the Institute Time Clauses Hulls or the Nordic Marine Insurance Plan, with an agreed value, a deductible, and named perils or all-risks terms. Maintenance of class with an IACS society and compliance with warranties are conditions of cover. It sits beside protection and indemnity, loss of hire, and war risks cover in a ship’s insurance program.