Think of it as your vessel versus everyone else’s problems. Hull and machinery covers the boat itself. P&I, short for protection and indemnity, picks up what your vessel does to other people: injury to crew and passengers, damage to wharves, moorings and other vessels, pollution, wreck removal and cargo. Most commercial operators need both. Down here P&I is usually written as a fixed premium liability section bolted onto the hull policy, rather than through one of the international clubs.

Navigation limits are a warranty, which means that an insurance company can decline a claim without any other reason if you’re outside of your defined limits on the Certificate of Operation.. Under the Marine Insurance Act 1909, breaching one discharges the insurer from the date it happens, and coming back inside your limits doesn’t switch the cover back on. If a job, a delivery run or a bit of weather is going to push you outside them, give us a call and we’ll get the limits varied first. It’s a small job beforehand and a very expensive one afterwards.

It comes down to how much certainty you want. Agreed value locks the figure in now, in writing, so nobody’s arguing about what the boat was worth after a total loss. Market value gets settled after the event, based on what a similar vessel of the same age and condition would cost you. Agreed value usually costs a bit more and usually needs a current valuation, but you know where you stand.

You’ll need both, and they do different jobs. Crew injury is generally a workers compensation matter, and for most vessels working within the one state (ie. ICARE for NSW, Workcover for QLD etc.) that means the state scheme rather than Seacare. Seacare only picks up interstate and international trading vessels, and it specifically excludes fishing vessels. P&I crew sections tend to sit behind workers comp and usually exclude anything payable under workers compensation legislation, so the two need to line up properly.

No it’s not automatic – it needs to be noted as included on the policy. On a lot of Australian commercial wordings passenger liability is an optional extension, and food and beverage liability is optional again on top of that. If you’re running on a pleasure craft policy, it won’t respond at all once you’re carrying people for reward.

Usually yes, but the wording matters. Most commercial hull policies cover the vessel afloat or ashore, including hauling out, launching and moving her within a set radius. Plenty carry a refit clause that holds up as long as the job stays within the insured amount. Additionally, we can often negotiate a cheaper premium if the vessel is in lay-up for a defined period.

Yes, that’s loss of hire. The thing to understand is what triggers it. The damage has to be covered under your hull policy first, and there’s normally a waiting period of around fourteen days plus a cap on how many days you can claim per incident. It won’t help if work has simply gone quiet or a contract’s been cancelled. If the vessel’s financed, your lender will very likely insist on it anyway.