Vessels with less than 500 gross tonnages are, in insurance terms, customarily called small craft vessels or coastal vessels. The hull & machinery insurance is taken out on the complete market value of the vessel and covers a loss of or damage to the vessel. Our small craft hull & machinery insurance product are mainly considered for the Swedish, Finnish and Estonian market.
What does my insurance cover?
The hull & machinery insurance is obtained on either Finnish Marine Hull Insurance Conditions 2001 (FHC 2001) or General Swedish Hull Insurance Conditions for Small Vessels of 2002 (AVM 2002) which are market standards and are subject to respective jurisdiction. The two conditions are similar to each other and the coverage can be contracted to include the following perils below. Both conditions are found under terms and conditions.
Total loss means that the vessel is completely lost or cannot be salvaged and that the insured amount is being paid to the policy holder. A total loss is either actual or constructive where the casualty is estimated to equal at least 80 % of the insurable value of the vessel. In the event of a total loss no deductible is collected.
Particular average is equivalent to damage to the vessel, often a result of e.g. grounding, fire and collision with another object. Particular average does not include machinery damage, unless the machinery damage is caused by the vessel having touched ground, stranded or collided with another vessel. Damage to the vessel sustained by the vessel while navigating or lying in ice shall not be covered under this peril.
The hull & machinery insurance also normally include the policy holder’s liability for collision incidents. Collision liability shall refer to the liability in damages that the policy holder is obliged to pay to a third party as a result of collision or other impact while in use. The collision liability does not include liability for bodily injuries nor liability for damage to or loss of property onboard the insured vessel.