Marine Insurance is divided into two main categories, Hull & Machinery (H&M) and Protection & Indemnity (P&I). P&I is subsidiary to H&M and is your liability insurance. H&M covers your property. However, the division between H&M and P&I insurance is not clear-cut. For instance, when it comes to collisions and contact damages on fixed or floating objects, your H&M insurer would normally be liable for the damages done. This depends on the insurance conditions under which your vessel is entered.
This text is by no means intended to reduce the shipowners’ area of authority, nor is it our intention to limit the master’s authority or freedom of action. Requirements and procedures in the owners’ instructions take precedence.
Norwegian Hull Club emphasises that nothing in this guide should hinder, delay or obstruct the obvious focus on the safety of the crew, which is by far paramount to rescuing property.