3 Reasons to Expand Your Hull Insurance Limits

Managing large vessels requires quality insurance coverage, but you cannot stand pat or get complacent when attempting to cover these large and complex machines. You’re hauling freight and dealing with a multi-million dollar boat that simply cannot be replaced or repaired quickly. Accidents happen. What can you do?

Your hull insurance limits must rise, and here are a few reasons why.

1.Repair Costs are Rising

Even the simplest repair is getting more and more expensive. Inflation is squelching the value of the dollar, meaning that employers have a more difficult time retaining staff. The parts required for your repairs are getting more and more expensive. Plus, waiting around for parts that are on back order costs more money as the vessel sits at sea, rests in the dry dock, is towed, and isn’t making money, etc

Costs can get out of control very quickly if you aren’t careful.

2. Ancillary Costs are Skyrocketing

Fuel costs are on the rise. That alone makes repairs, towing, and operation that much more expensive. Plus, the cost of even the smallest parts or tools every shipyard retains in bulk are rising so much that they can severely impact your repair bill.

You should not assume that certain repairs or services are cheap. They might have been at one time, but those times are changing. Think about the state of the economy today and remember that increasing insurance limits is much easier than paying out of pocket for repairs that could have been handled—had you increased those limits.

3. You Cannot Anticipate the Price of a Disaster

There’s no standard measure for how much a disaster costs. You cannot be sure that a simple instance of colliding with a dock costs X dollars. You should never assume that particular repairs are cheaper because you’ve seen them done before. Only your vendors can set prices, and you are at their mercy.

Shipyards change their prices all the time, and you could pay for two repairs only a week apart and discover that they are vastly different—don’t lull yourself into a false sense of financial security. Buy better hull insurance.

Contact Arrowood Insurance for More Information on Hull or P&I Insurance

Reach out to our expert team at Arrowood Insurance if you need more information on hull or P&I coverage. We work with the finest specialty carriers that will handle your risk and keep your costs as low as possible. Yes, extending the limits on your policy is a good idea, but working with an expert brokerage is just as important as our service and support is unmatched.


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