Hull & Machinery (H&M) Insurance is a specialized type of marine insurance that provides financial protection to shipowners against physical damage to their vessels. It covers the hull (the main structure of the ship), machinery, and essential equipment from risks such as collisions, fires, explosions, grounding, and weather-related damage. The policy ensures that shipowners can recover the costs of repairs or, in severe cases, receive compensation for the total loss of the vessel. Additionally, some H&M policies can be extended to include coverages like loss of hire, which compensates for income lost while the ship is under repair, and collision liability, which covers damages to other vessels in the event of an accident.

H&M insurance plays a vital role in maritime risk management, ensuring financial stability for shipping companies, fishing fleets, offshore industries, and other vessel operators. Since ships operate in unpredictable environments with exposure to natural and human-made hazards, this insurance helps mitigate financial losses that could otherwise be devastating.