Insurance for Hull & Machinery provides cover for physical loss or damage for the hull (or shell) of a ship but also her machinery (propulsion machinery and any equipment used for activities such as cargo handling).
Hull and Machinery insurance typically covers loss or damage caused by named perils such as collision, grounding, fire and explosion, earthquakes (and the tidal waves that might follow them) and general perils of the sea, lakes or rivers – which must be shown to be extraordinary in nature rather than just the fact that the sea was a bit rough.
Sometimes ships collide either with other ships or other fixed or floating objects. In many cases the ship will be (partly) liable in law for any damage caused to the other ship or object. The hull and machinery policy, although mainly a physical damage policy, provides also an element of liability cover as long as the collision is with another ship.
It is also possible to purchase top up insurances to ensure that if the ship is completely lost,
the indemnity is adequate to actually replace the vessel. This type of insurance is known as Increased Value and is generally capped at 25% of the agreed value.
In most Charter Parties there is an element of liability for charterers. Charterers are mainly responsible for safety of the port (1 gsbaaaa 1 sp, good safe berth always accessible always afloat 1 safe port). Further standard clause in most voyage charter parties read that the charterer shall be responsible for damage (beyond wear and tear) to any part of the vessel caused by stevedores. Ships have capsized and sunk because of shifting of cargo and charterers were held liable for it. Charterama’s Charterer’s Liability-insurance covers for hull damage as a consequence of stevedore damage, unsafe port/berth, off-spec bunkers which may cause damage to machinery, damage to vessel caused by cargo and damage to the vessel from stowage.
More information about cargo insurance companies and what we can do for you? Click here to contact us.
In the day to day hectic of shipping you don’t need problems. Unfortunately, sometimes problems do occur and in that case you need quick solutions and someone who understands you.
Charterama is the Charterers legal liability solution and understands your business.
With our experience in the shipping industry, on board ships, in ship operation or in commodity trade, you benefit from our hands-on and pro-active mentality and approach.
Claims issues will be picked up without delay; you will speak directly to a specialist who knows who you are. And your quotation and your documentation will be with you within 24 working hours, or even the same day.
Contact our office in Rotterdam, Hong Kong or in Paris.More about Charterama