Hull and Machinery Insurance

Physical damage coverage for vessels: hull structure, main engines, auxiliary machinery, and onboard equipment. Covers named perils including perils of the seas, fire, collision, grounding, and machinery breakdown, plus three-fourths collision liability. Voyage arranges hull and machinery insurance under Institute Time Clauses for commercial vessels, offshore support fleets, tugs and barges, and harbour craft operating from Malaysia and Singapore.

Our Specialisation

Marine Cargo & Liability Specialists We focus on marine cargo insurance and freight forwarder liability. This means deeper underwriter relationships, faster placements, and better terms for your trade programme.

Asia-Pacific Trade Corridors We work with underwriters who understand the commodities and shipping routes coming out of Malaysia, Singapore, and Southeast Asia. Regional expertise, global coverage.

Specialist Extensions War risk, strikes, specie, and project cargo. We arrange coverage others decline, including high-value goods and shipments through conflict-affected corridors.

A bulk carrier runs aground on approach to a Malaysian port. The hull plating is breached below the waterline. Salvors are engaged. The vessel is refloated, towed to a shipyard, and dry-docked for repairs. The repair bill: $4.2 million. The vessel was also in collision with a navigation buoy belonging to the port authority, adding a third-party liability claim.

Hull and Machinery insurance covers physical loss of or damage to the vessel from named perils, plus the vessel owner's collision liability. It is the property insurance component of a vessel owner's programme, protecting the asset that generates your revenue. Without it, every grounding, fire, machinery failure, and collision is an uninsured hit to your balance sheet.

This page covers:

• What Hull and Machinery insurance covers
• The perils insured under Institute Time Clauses (Hulls)
• What is excluded and how exclusions are addressed
• How collision liability works under H&M
• Constructive total loss and actual total loss
• How Voyage places Hull and Machinery cover
• Frequently asked questions

What Hull and Machinery Insurance Covers

Hull and Machinery (H&M) is a named perils policy. Unlike marine cargo insurance under ICC (A), which covers all risks except specific exclusions, H&M covers only the perils specifically listed in the policy. The most widely used clause set is the Institute Time Clauses (Hulls) dated 1/10/83 (ITC-Hulls 1983), published by the International Underwriting Association and subject to English law and practice.

Insured Perils (ITC-Hulls 1983, Clause 6)

H&M perils are divided into two categories. The first group (Clause 6.1) covers loss or damage caused directly by the named peril. The second group (Clause 6.2, known as the Inchmaree Clause) covers loss or damage caused by the named peril provided it did not result from want of due diligence by the assured, owners, or managers.

The Inchmaree Clause perils (6.2) require that the loss did not result from want of due diligence by the assured, owners, or managers. This means the vessel must have been properly maintained, crewed, and managed. Negligence by the master and crew is covered. Negligence by the owner or manager is not.

What H&M Pays

Standard Exclusions

H&M is a named perils policy, so anything not listed in Clause 6 is not covered. In addition, specific exclusions apply.

→ Protection and Indemnity (P&I) Insurance

How Collision Liability Works Under H&M

Hull and Machinery policies include a collision liability clause that covers the vessel owner's liability to the other vessel in a collision. Under ITC-Hulls 1983, this is limited to three-fourths of the owner's liability.

This three-fourths / one-fourth split is why H&M and P&I must work together. A collision creates claims under both policies.

Vessel Types and H&M Coverage

H&M coverage applies to all types of vessels, but underwriting considerations, pricing, and policy conditions vary by vessel type and trade.

How Voyage Places Hull and Machinery Cover

Vessel Information: We collect the details underwriters need: vessel particulars (name, IMO number, type, GRT/NRT, year built, builder), flag state, classification society and class notation, trading area, insured value, and claims history.

Market Selection: Hull underwriting appetite varies by vessel type, age, flag, and trade. We place your risk with underwriters who actively write your vessel class, whether that is a Lloyd's syndicate, a London company market insurer, a Singapore marine hull underwriter, or a regional carrier.

Policy Structure: Coverage basis (ITC-Hulls 1983 or alternative), insured value, deductible, trading limits, and any additional clauses (towing approval, cargo exclusions, lay-up returns) are structured around your vessel's actual operations.

War Risk: Institute War and Strikes Clauses (Hulls-Time) are placed alongside the standard hull policy. Additional premiums for JWC listed areas are arranged per transit.

Renewal Management: Hull policies typically run for 12 months. At renewal, we review the vessel's claims experience, trading pattern, and market conditions. For fleets, we manage the programme renewal across all vessels.

Frequently Asked Questions (FAQ)

What is Hull and Machinery insurance?

Hull and Machinery (H&M) insurance covers physical damage to a vessel's hull structure, main engines, auxiliary machinery, and onboard equipment. It is a named perils policy covering perils of the seas, fire, collision, grounding, machinery breakdown, and crew negligence, among other perils listed in the Institute Time Clauses. It also includes three-fourths collision liability.

What is the difference between H&M and P&I?

H&M covers the vessel as property: physical damage, total loss, salvage, and collision liability. P&I covers the vessel owner's liabilities to third parties: crew injury, cargo claims, pollution, wreck removal, and fines. H&M is placed with commercial insurers. P&I is typically placed with mutual P&I clubs. Both are needed for a complete vessel insurance programme.

What are Institute Time Clauses (Hulls)?

Institute Time Clauses (Hulls) are the standard policy terms used for hull and machinery insurance worldwide. The most widely used edition is the ITC-Hulls 1/10/83. A revised edition (1/11/95) and the International Hull Clauses (01/11/2003) also exist but are less commonly used. All are subject to English law and practice.

Is H&M an all-risks policy?

No. Unlike marine cargo insurance under ICC (A), which covers all risks except specific exclusions, H&M is a named perils policy. Only the perils listed in Clause 6 of the Institute Time Clauses are covered. If a loss is not caused by a named peril, it is not covered. War, strikes, wear and tear, and owner's lack of due diligence are among the exclusions.

How is the insured value determined?

The insured value is an agreed value stated in the policy. It represents the maximum the insurer will pay in the event of a total loss. It should reflect the market value of the vessel, though the agreed value is conclusive between the parties once set (subject to fraud). Over-insurance and under-insurance both create problems: over-insurance can raise questions of moral hazard; under-insurance means a total loss payment will not cover replacement.

What is the deductible on an H&M policy?

Each claim under an H&M policy is subject to a deductible (also called an excess or franchise). The deductible is agreed at placement and reflects the vessel's type, age, value, and claims history. Higher deductibles reduce the premium. The deductible applies per incident, so multiple incidents in a policy year each carry their own deductible.

Does H&M cover loss of hire or loss of earnings?

No. Loss of hire and loss of earnings are not covered by standard hull and machinery policies. If your vessel is out of service due to an insured peril (for example, in dry dock for collision repairs), the lost revenue during the repair period is not covered by H&M. Separate loss of hire insurance can be arranged to cover this exposure.

Can Voyage arrange H&M for older vessels?

Yes. Underwriter appetite for older vessels varies, but coverage is available. Older vessels may face higher premiums, larger deductibles, and conditions such as survey requirements or trading area restrictions. Voyage works with underwriters who have appetite for a range of vessel ages and types.

Voyage Conclusion

Your vessel generates revenue every day it operates and incurs costs every day it does not. Hull and Machinery insurance protects the physical asset against the perils that can take it out of service or destroy it entirely. When combined with P&I, it forms the foundation of a vessel owner's insurance programme.

Voyage arranges Hull and Machinery insurance for commercial vessels, offshore fleets, tugs, barges, and harbour craft, with placement through international hull markets accessible from Malaysia and Singapore.

Disclaimer: This page provides general guidance on Hull and Machinery insurance. Coverage terms, conditions, and availability vary by insurer, policy, and jurisdiction. Rates and premium indications are illustrative and do not constitute offers of coverage. Always review your specific policy wording and consult a qualified insurance professional before making coverage decisions.

Our Solutions

Insights on Hull Insurance

Guidance on vessel coverage, war risk, and insurance for shipowners and operators.

Let's Talk About Your Vessel

If you own or operate vessels and need Hull and Machinery coverage, we can structure a programme around your fleet profile, trading area, and operational requirements.

Voyage is a specialist marine insurance platform arranging coverage for goods in transit and vessels worldwide. All insurance is arranged through licensed broking partners. Voyage is not an insurer. Coverage terms, conditions, and availability vary by insurer, policy, and jurisdiction.