Marine vs Hull insurance: Difference and Comparison

The terms marine and hull insurance are related to property insurance and include vessels travelling overseas.

Key Takeaways

  1. Marine insurance is a broad category of insurance that covers ships, cargo, and other marine assets during maritime transport, offering protection against various perils at sea.
  2. Hull insurance is a specific type of marine insurance that covers physical damage to a vessel’s hull, machinery, and equipment, excluding cargo or liabilities.
  3. Marine insurance encompasses a range of coverage options, while hull insurance specifically targets protecting a vessel’s structure and essential components.

Marine Insurance vs Hull insurance

The difference between Marine and Hull insurance is that it covers the ships and boats as a whole and the cargo they carry. Hull insurance only covers the boat’s main body or ‘hull’.

Marine insurance vs Hull insurance

Marine insurance is a type of insurance that covers sea vessels (ships, boats) and the cargo shipment items present on these vehicles. It is a superset of many different types of insurance that are maritime-related.

Hull insurance is a type of marine insurance that explicitly covers a significant part of the ship or boat, the hull.


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Comparison Table

Parameters of ComparisonMarine insuranceHull insurance
Level of insuranceNow, marine insurance is a superset of many major maritime-related insurances.Hull insurance is a branch of marine insurance that covers only a few aspects, policy-wise, compared to marine insurance.
Area covered by insuranceIt covers insurance and liability for all sea vehicles such as ships, boats, ferries, and the cargo carried by these vessels.It covers an essential aspect of sea vessels: the main body or ‘Hull’ and any other attached functionalities.
Insurance policiesThe insurance policies covered here are Voyage policy, time policy, mixed policy, open or un – valued policy, Valued policy, and wage policy.Policies included here are Destruction of the hull, damage to machinery, disbursement losses, ship – breaking losses.
Measures to be followedMeasures need to be taken by the ship captain to follow the proper route provided by the insurance company to avoid damage to the whole vessel.Since it only deals with the vessel’s body, instructions are given on maintaining the ship.
Eligibility criteriaThe entities that can apply are banks, import/export merchants,Many entities, such as public and private port authorities, operators, and ship owners, are eligible for this.
Buying agents, manufacturers especially.


What is Marine Insurance?

It is one of the significant property insurances that can be applied for all vessels that travel via water. Many organizations with a hand in operations, such as sea trading (for cargo shipment) and ocean travel (such as cruise ships), apply for this type of insurance.

It is pretty essential to have this insurance coverage because it covers all the damages that can be caused to major components of the vessels, such as –

  1. Damages due to natural disasters or calamities such as tsunamis, earthquakes, etc
  2. Damages caused to cargo or any form of harm caused to precious items on board, such as theft, catching fire, etc.
  3. Damages are caused by the third party in case of collisions while travelling.
  4. Complete loss of shipping vessel due to various malicious reasons. 

The above are a few instances in which damage to the vessel can occur, and marine insurance covers them all.

Captains of ships also have to follow specific guided routes while on the sea, which the insurance company provides to avoid any form of harm on the way, such as high tides, pirates, etc.

 To give a brief overview of the various types of insurance that come under marine insurance, the list goes as follows –

  1. Cargo insurance
  2. Freight insurance
  3. Marine liability insurance
  4. Hull insurance

These help cover each aspect of the ship and come with various policies to guarantee that the ship can travel without worry.

There are a few significant policies also involved with marine insurance –

  1. Voyage policy
  2. Open or unvalued policy
  3. Time policy
  4. Mixed policy
  5. Wage policy
  6. Valued policy

And lastly, a few of the documents that are needed to apply for the claims in marine insurance are as follows –

  1. Copy of billing lading
  2. Copies of correspondence exchanged
  3. Original insurance certificate
  4. Claim form
Marine Insurance

What is Hull insurance?

Hull insurance provides specific coverage for maritime vessels. This type of insurance only covers the main supporting body, which excludes the mast.

This body can also contain the various functionalities that are added to it.

It was mainly made for vessels that traveled by sea or ocean ways, such as fishing boats, yachts, streamers, cruise ships, etc.

Although its coverage is not that vast, it does have various types of it –

  1. Dry bulk carrier’s insurance
  2. General cargo vessel insurance
  3. Passenger vessels insurance
  4. Liquid bulk insurance

The multiple damages covered by this insurance are as follows –

  1. Injuries are caused by natural hazards such as tsunamis, storms, etc.
  2. Damage occurred to any other vessel when travelling, such as collision with other ships or boats.
  3. Damages are caused by the crew while doing maintenance or trying to fix something.

A few of the policies covered by this insurance are –

  1. Destruction of hull
  2. Damage to machinery
  3. Disbursement losses
  4. Shipbreaking losses.
hull insurance

Main Differences Between Marine Insurance and Hull insurance

  1. Marine insurance is vast regarding coverage and type of insurance under it. Hull insurance is a minor component of maritime insurance.
  2. Marine insurance covers all possible damages that can be done to the vessels as a whole, while hull insurance is only concerned about the main body of the ship.
  3. Marine insurance provides far more policies than hull insurance because every vessel’s aspect and component must be considered.
  4. Major organizations take up marine insurance as they need it more than average fishermen. Hull insurance is more affordable, so most boat owners apply for it.
  5. Marine insurance has strict restrictions regarding routes to avoid damages, which the captain must strictly follow. Hull insurance does not have any such restrictions.
Difference Between Marine Insurance and Hull insurance

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