In the maritime industry, ensuring the physical integrity of a vessel is paramount. From the hull’s structure to the inner workings of machinery, a vessel must withstand the harsh environments of open seas. Hull & Machinery (H&M) Insurance plays a pivotal role in protecting shipowners and operators against financial loss from damage to the vessel’s core components.
This blog will explore what H&M insurance covers, its importance, and how it fits into the broader maritime risk management framework.
What is Hull & Machinery (H&M) Insurance?
H&M insurance provides coverage for physical damage to a vessel’s hull, superstructure, and machinery due to unforeseen incidents. It is one of the most essential marine insurance products, ensuring that shipowners can recover from accidents such as collisions, fire, machinery breakdown, or grounding.
Unlike Protection & Indemnity (P&I) insurance, which covers third-party liabilities, H&M focuses on protecting the vessel itself from risks that threaten its structural integrity and mechanical performance.