Hull & Machinery


Commercial Hull
A vessel’s hull & machinery insurance is the primary insurance against physical damage of the vessel. This insurance, depending on the extent of protection selected, compensates the Ship-owner, Bareboat Charterer or Third Party Ship Manager against total loss of the vessel, partial damages, salvage, collision liability and the vessel’s contribution under General Average.

Loss of the vessel or damage to the vessel means that the ship-owner will incur costs and expenses but also potentially a financial loss of revenue.

Hull and machinery insurance is a type of ocean marine insurance, which protects the insured vessel or fleet against physical damage caused by a peril of the sea or other covered perils while the vessel is in transit over water.

Hull and machinery insurance policies can be written to cover a single vessel or the whole fleet of a ship owner.

While most of the hull & machinery risks are sea or ocean going vessels, vessels that work in any kind of waterway, such as tugboats, barges, pleasure craft, floating machinery, and even oil rigs which operate in coastal areas or inland in rivers and lakes also require hull & machinery cover.

Other related insurances are:

Increased Value or Disbursements
Increased value insurance is a cover against total loss of the insured vessel. A total loss of the vessel can put the ship-owner in a situation, where the hull value insured is insufficient to cover the costs for replacing the lost vessel. The increased value insurance makes it possible for the ship owner to replace the vessel and moderate the economic effects of a total loss. By taking out freight interest insurance the shipping company can safeguard itself against a long-term future loss of income, and in that way get cover for loss of income, which is excluded in the loss of hire insurance. The insured value of each insurance is normally limited to a maximum of 25% of the hull & machinery insurance value.

Loss of Hire Insurance
Through a loss of hire insurance the ship-owner protects the potential loss of income when a casualty occurs and vessel is off-hire. Compensation is subject there is recoverable damage on the Hull & Machinery insurance but would exempt a total loss situation. The extent of the insurance and the insurance premium are based upon an agreed daily indemnity during a certain period per occasion and year. The daily indemnity should correspond to the ship owners’ actual loss of income if the vessel is off-hire for an extended period of time.

War Risks
Hull & Machinery and Increased Value insurance do not include cases of damage as a consequence of war like hostilities, civil unrest, sabotage, terrorism, arrest, seizure etc. These risks are covered by war risks insurance, which is tailor-made and adapted to the vessel’s other insurances. War risks insurance could make it possible for a vessel to operate in waters hit by unrest and normally excluded from insurance cover at an additional premium and to specially agreed terms

Pleasure Craft
For recreational sailors, the sea promises freedom and adventure but also potential risks to you and your boat. With QBE Pleasure Craft Insurance you can enjoy the freedom of boating and leave the worry of an unforeseen accidents to QBE. We will help protect you against physical loss of or damage to your boat as well as legal liabilities to third-party property and bodily injury caused by the use of your boat.

Our coverage is an “All Risks” cover which is significantly wider than the usual and more common Institute Yacht Clauses most insurers offer. Other features are:

  • Pollution Liability Extension
  • Personal Effects
  • Sailboat Club Racing Risks
  • Loss of or damage to Sporting Equipment
  • Water Skiers and Aquaplaning Liability
  • Land Transit Damage

We are committed to providing superior technical solutions and service by working closely with our customers to develop a detailed understanding of their business operations, risk exposures and risk appetite and to apply our expertise to those individual business situations.

The relationships that we have built over the years with our extensive network of insurers means that we are able to negotiate and deliver the most relevant insurance cover, not only competitively priced but also with the widest possible coverage available to match our customers’ needs.

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