Hull and machinery
H&M
Meaning
Hull and machinery (H&M) insurance covers physical loss of or damage to the ship itself, such as from collision, grounding or machinery breakdown.
Also written as Hull insurance
Hull and machinery explained
H&M is placed in the commercial insurance market, separately from P&I and from war risks. Trading to excluded areas or breaching warranties can affect cover, which is why charters restrict trading limits.
Related terms
P&I club
A P&I (protection and indemnity) club is a mutual insurer covering shipowners' third-party liabilities, such as cargo claims, pollution and crew injury.
War risks clause
A war risks clause sets out what the owner may do, and who pays extra costs, if the voyage is exposed to war, piracy, terrorism or similar dangers.
Additional war risk premium
Additional war risk premium (AWRP) is the extra insurance cost charged for each call to, or transit through, an area listed as high risk by war underwriters.