Definition
H&M covers the ship as property: damage from perils of the sea, fire, collision, grounding, machinery breakdown (in some forms), and total loss. Two wordings dominate. The English Institute Time Clauses Hulls (ITCH 1.10.83 still the most used) insure named perils, with the burden on the assured to show one applies; the Nordic Marine Insurance Plan, dating back to 1867 and revised every three years, is "all risks", with the burden on the insurer to show an exclusion.[1,2]
They also split collision liability differently. ITCH clause 7 covers three-quarters of the owner's liability for collision with another ship; the Nordic Plan covers four-fourths and contact with fixed and floating objects. What hull leaves — the remaining quarter, damage to fixed objects, and liability above the hull's insured value — is normally placed with the P&I club.[1,2]
For superintendents, H&M is the cover behind major repairs: notify underwriters early, let the surveyor attend before work starts, and keep the invoices for spares and repair separate from routine maintenance, which the policy does not pay for.
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Sources
- [1] Gard — Brief overview of the Nordic Plan and the Institute Time Clauses Hulls — https://gard.no/insights/brief-overview-of-the-nordic-plan-and-institute-time-clauses-hulls-itch/
- [2] Gard — The interface between hull and machinery insurance and P&I — https://gard.no/insights/the-interface-between-hull-and-machinery-insurance-and-p-and-i-from-the-p/
A working definition for buyers, not legal advice — the contract, the convention text and your club or class have the last word.