H & M policies cover all kinds of vessels ranging from a tiny dinghy to an ultra large crude carrier including passenger vessels, yachts. hydrofoils, hovercrafts etc. The Policy covers the Hull, machinery and other equipment and stores etc. on board, but does not cover cargo. The cover granted is so formulated as to meet the requirements of the individual ship-owner and protects the ship-owner against partial loss, total loss (actual or constructive), ship’s proportion of GA and salvage charges etc. The Policy also covers sue and labour expenses and ship owner’s liability towards other vessel arising from collisions. Normally, only 3/4 of the collision liability is covered under H & M Policy and the remaining 1/4th is covered with P & I clubs, Sometimes, the collision liability is fully covered under the Hull Policy. Under certain circumstances, the H & M Policy is extended to cover ship owners’ liabilities towards port authorities for removal of wreck of the vessel and damage done to jetties, docks etc. For small inland vessels lying within the Indian coastal waters, which cannot afford to “enter” their vessels with P&I clubs abroad, the H&M Policy may be extended to cover balance 1/4th Collision Liability and ship owner’s liabilities towards Port authorities for removal of wreck of the Vessel and damage done to jetties, wharfs, docks etc. (P&I risks) at additional premium.