Marine Hull insurance covers nearly everything that floats and moves, starting with rowing boat to huge ocean going tankers. Besides that, hull underwriters will not hesitate to insure non-propelled objects, which may occassionaly move such as floating docks, buoys, transshipment barges and even floating hotels. Furthermore we can say that vessels under conversion or construction are also dealt with by marine hull underwriters.
In fact, there are many uniform conditions around the world and many alternatives how to insure your beloved ship, but let us outline the most widely known insurance covers, which your fellow shipowners are considering to have:
This is very basic of marine hull. Sceleton, if we may say so. This policy will cover your vessel, including hull, machinery, gear and equipment against loss or damage. Normaly you would be also entitled to claim for your ship's proportion of salvage, salvage charges, general average as well as wages and maintenance under your H&M policy, but you need to check your wording first.
This is insurance for the vessel under construction. Cover is normaly against all risks of loss or damage to vessel whilt under construction or conversion and during trials and would include certain liability risks as well. This insurance is normaly taken by ship builders.
The policy covers perils of the seas, rivers, lakes or other navigable waters loss/damage to the property insured caused by:
* Fire, explosion
* Stranding, sinking etc.
* Overturning, derailment ( of land conveyance )
* Violent theft by persons outside the vessel.
* General average sacrifice, sacrifice, salvage charges
* Breakdown of or accident to nuclear installations or reactors
* Contact with aircraft or similar objects, or objects falling there from, land conveyance , dock or harbour equipment or installation.
* Earthquake volcanic eruption or lightning.
* Crew Negligence.
* Deliberate damage/destruction of the vessel by wrongful act of any person
* Use of any weapon of war employing atomic / nuclear fission and or fusion.
* Radioactive Contamination, Chemical, Biochemical, Biological, Electromagnetic Weapons.
* Insolvency or financial default of the vessel owner /operators /charterers
* War / civil war, Strike, Riot or Civil Commotion
* Any terrorist or person/s acting with political motive
Liability insurance for practically all maritime liability risks associated with the operation of a vessel, other than that covered under a workers compensation policy and under the collision clause in a hull policy. There is no standard P&I form with the specific terms and conditions for each insured tailored by underwriters based on the nature of the risk and the character and amount of insurance desired by the insured. Additionally note that since the P&I policy is essentially a contract of indemnity, the insurer is not obligated to pay unless the insured must actually pay the claim
Prepare for the Unexpected... Get Insured.