Hull insurance covers physical damage to a vessel and its machinery rather than to the goods being transported.
In marine insurance, the hull is the ship or other insured vessel, including covered equipment and machinery. Policies may respond to risks such as collision, grounding, fire, storms, and other maritime perils, subject to the contract’s exclusions and deductibles.
Cargo insurance protects goods carried by a vessel, so hull and cargo insurance address different interests in the same voyage. A shipowner normally needs hull coverage, while a cargo owner or seller may arrange cargo coverage. Protection for legal liability to third parties is another separate category, often associated with protection and indemnity insurance.
The exact scope depends on the policy wording, navigation limits, vessel type, and survey requirements.