The purpose of hull insurance is to cover ship owners various insurable interests and
- Hull & Machinery Insurance
- Insurance of freight
- Builders Risk policy
- Loss of hire insurance
- Loss of profit Insurance
The policy covers all risks of physical loss or damage to the vessel (Hull &Machinery) caused by any fortuitous cause including latent defect or by the negligent or malicious act of any person, or by theft, or by the act of any governmental authority done for the purpose of preventing or mitigating pollution or risk of pollution resulting from loss or damage to the vessel. The vessel may include passenger and cargo ships, fishing boats, yachts and so on.
The vessel is insured for its market value.
The premium depends on factors like a year of built, the purpose of use, territorial limits of trading and so on.