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Marine insurance: hull & machinery and P&I
A vessel needs two basic covers: hull & machinery, for damage to the vessel itself, and P&I, for what the shipowner owes to third parties. We place them with specialist insurers and the Lloyd's market through coverholders.
Key points
Marine hull & machinery insurance covers damage to the vessel itself; P&I covers the shipowner's liabilities to third parties. Together they form the basic protection for shipowners and shipping companies.
Hull & machinery insurance covers physical damage to the vessel. Protection and indemnity (P&I) insurance covers the shipowner's liabilities: crew, cargo, collision, pollution or wreck removal, depending on the policy.
What it covers
Hull & machinery
Damage to the vessel from grounding, collision, fire, heavy weather or machinery breakdown.
P&I
The shipowner's liabilities to crew, cargo and third parties.
Pollution
Liability for spills from the vessel.
Wreck removal
Costs of removing the wrecked vessel when required by the authorities.
What to check before taking it out
The vessel's agreed value
The value for which the hull is insured.
Navigation areas
Where the vessel operates and what geographical limits the policy sets.
P&I limits
The amounts for which the insurance responds to third parties.
Deductibles
Per claim and by type of damage.
Frequently asked questions
What is the difference between hull and P&I?
Hull cover protects against damage to the vessel itself. P&I covers what the shipowner owes to third parties.
Who provides P&I?
Usually P&I clubs, which are shipowners' mutuals, or specialist insurers.
Do you insure pleasure craft?
Yes. We have a dedicated boat insurance page.
What does P&I cover?
Shipowner's liabilities such as crew injury, cargo damage, pollution or wreck removal, depending on the club rules or the policy.
Can the vessel's loss of income be insured?
There are specific covers, such as loss of hire, which are taken out separately.
Related insurance
Shall we review your insurance programme?
We'll tell you what is well covered, what isn't and what can be improved. No obligation.