Glossary
Hull & Machinery (H&M)
Definition: Hull & Machinery (H&M) is the maritime hull insurance that protects the vessel itself — hull, superstructure, main engine, generator, navigation equipment — against physical damage and loss.
Why it matters
H&M is mandatory in yacht financing. The financing partner typically sits as "loss payee" or "co-insured" — in damage / total-loss events, insurance proceeds go first to close the loan.
Typical coverage
- Collision, contact, storm damage
- Fire, explosion
- Grounding
- Sea perils
- Usually 4/4 collision liability (third-party 4/4 share via H&M)
Typical exclusions
- Third-party injury → P&I
- Crew illness / accidents → P&I
- Pollution → P&I
- War / terror → war risk add-on
- Mechanical breakdown (prior-maintenance failure) — may be excluded