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WHAT MARINE EQUIPMENT INSURANCE DOESN’T COVER – AND WHY IT MATTERS
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KEY EXCLUSIONS
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CONDITIONS & WARRANTIES
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GREY AREAS & GAPS
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HOW TO AVOID DISPUTES
Know where your cover stops – before a claim happens
Marine Equipment Insurance can be extremely broad - covering hull, machinery, floating plant, construction equipment and tools used on or near water. But every policy has exclusions, conditions and warranties that can significantly affect how claims are paid. This page highlights the most common “not covered” areas for UK marine operators and contractors and explains where extra cover or careful wording may be required.
Typical General Exclusions in Marine Equipment Policies
While the detail varies between insurers, most marine policies contain a core set of general exclusions.
- Wear, tear, gradual deterioration & corrosion
- Rust, pitting and lack of maintenance
- Pre-existing damage or known defects
- Mechanical or electrical breakdown (unless specifically added)
- Wilful misconduct or intentional acts
- Fines, penalties and criminal sanctions
- War, terrorism & political risks (unless bought back)
- Nuclear, chemical or radioactive contamination
- Fraudulent or exaggerated claims
- Use of equipment outside agreed navigation or operating limits
Common Exclusions for Marine Plant, Vessels & Floating Equipment
Some exposures require specific extensions or separate policies, rather than being automatically covered under Marine Equipment Insurance.
- Liability to third parties (unless a liability section is included)
- Cargo or goods carried on board (usually insured separately)
- Crew and employee injury (covered under Employers’ Liability / P&I)
- Contractual penalties or liquidated damages
- Pure financial loss not arising from physical damage
- Pollution & environmental damage (unless added as an extension)
- Loss of hire / loss of revenue (requires specific cover)
- Cyber incidents affecting navigation or control systems
- Unapproved towage or unseaworthy tow arrangements
- Use of equipment outside declared scope (e.g. offshore vs inshore)
Conditions & Warranties That Can Affect Claims
Many disputes arise not because the peril is excluded, but because a warranty or condition has not been met.
- Minimum manning & competency requirements
- Scheduled maintenance and inspection obligations
- Compliance with safe working procedures & lift plans
- Navigation limits, weather restrictions & towage warranties
- Security requirements when equipment is unattended
- Storage conditions for plant, tools and fuel
- Reporting of defects and prompt repairs
- Use in accordance with manufacturer guidelines
Exclusions That May Be Insurable by Extension
Some exclusions can be partially or fully removed if you negotiate the right extensions or companion policies.
- Machinery breakdown & engineering cover
- Pollution & environmental liability
- Loss of hire / loss of revenue
- Increased removal of wreck limits
- Crew & passenger liabilities (via P&I / EL)
- Contract works & project-specific covers
- Cyber liability & cyber-physical damage add-ons
- Higher limits for towage & offshore work
FREQUENTLY ASKED QUESTIONS
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Is wear & tear ever covered under marine equipment insurance?
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Is machinery breakdown automatically included?
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Are fines and penalties covered if we cause pollution?
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What happens if we operate outside navigation or working limits?
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Can we extend our cover to include some of these exclusions?
Related Covers
Explore related marine-equipment pages on exclusions, breakdown extensions, pollution cover, and how policy wording changes claims outcomes.