Businesses related to the marine industry face risks different than those of other industries. For this reason, property and liability risks of this sector are covered by specifically designed insurance policies.
Hull and machinery insurance policy covers accidental physical damage to the vessel caused by collision, theft, sinking and other perils.
Hull insurance also covers the lifeboats, rafts, stores, supplies, furniture, electrical machinery, boilers, motors, generator, and all physical equipment needed to operate the ship.
We provide marine hull and machinery insurance for all types of ships and vessels and their equipment, including:
- Container ships
- Oil & gas tankers
- Bulk carriers
- Passenger vessels
- Fishing vessels
- Tugs and barges
- Offshore energy support vessels
- Yachts and pleasure craft
Marine hull insurance can be issued for a single ship or a whole fleet.
Types of available cover
- Hull & Machinery (H&M): This policy covers vessel, including hull, machinery, gear and equipment against loss or damage.
- Hull and Machinery - War & Strikes Risks: Cover against War, Strikes, Riots, Civil Commotions etc. Trading to ‘Excluded’ areas (as defined within the London Market’s list of excluded areas) is customarily subject to specific agreements.
- Marine Kidnap and Ransom: Ensures that if a vessel is captured and a ransom demanded, the ship owner is able to respond quickly and with the support of experienced crisis-handling professionals to ensure the safety of the crew and expedient release of the vessel. It covers the ransom paid, the loss in transit of the ransom, the fees and expenses of security experts, plus certain additional expenses and legal liabilities.
- Disbursements, Freight, Increased Value (IV): This policy covers a certain amount of money which is agreed on beforehand with the underwriter in excess of insured value of the vessel in case it is a total loss, whether actual or constructive.
- Loss of Hire (LOH): This policy compensates a daily amount stated in the policy (which is agreed on beforehand with the underwriter) whilst a ship is under repairs following an accident covered under H&M insurance. Such a policy normally has a time deductible.
- Vessel Trade Disruption: An extended form of Loss of Hire cover which protects a ship owner from loss of revenue caused by a broad range of geo-political exposures. Particularly suited, though not exclusively, to ferries and cruise vessel owners.
- Mortgagees' Interest Insurance (MII): This policy is normally requested by bankers. It protects the mortgagees' interest in the insured vessel in case H&M underwriters refuse to settle a claim due to a breach of warranty stated in the H&M policy.
- Builders' Risks: This insurance is for vessels under construction. Cover is normally provided against all risks of loss or damage to the vessel whilst under construction or conversion and during trials. This insurance, which is normally used by ship builders, also includes certain liability risks as well.
- Builders Risks – Consequential Loss: Cover to protect ship owners from delays in a vessel’s delivery as a result of a casualty during construction. Typically arranged in the event of a vessel being built to meet contractual delivery deadlines or to comply with a contract of affreightment.
- Marina Insurance: Customarily a packaged cover to include a range of liabilities, physical losses and damage risks encountered by marina operators or owners.
- Protection and Indemnity (P&I): Third party liability covers for all types of vessels.
- Freight, Demurrage and Defense (FD&D): This insures the ship owner from legal costs associated with either the defense or pursuit of a claim relating to the insured vessel, In most instances an optional adjunct to P&I coverage.
- Crew Personal Accident (PA) Cover: Personal Accident cover designed specifically for a ship’s officers and crew. It is often arranged in circumstances where the vessel is not entered with a P&I Club, or arranged under contract by owners or managers for the benefit of the crew and their dependents.
Premium rates depends on:
- Value of the vessel
- Type of vessel
- Navigation area
- Purpose of usage
- Experience of the crew
- Industry experience
- Previous loss history
- Extensions opted for
Please note that for the easy understanding of the insurance policy, we have highlighted the important aspects. We will be glad to receive your queries and discuss the full set of policy terms, conditions and exclusions.
For more information, please contact Nasco Gulf at +971 4 351 8610.