Marine Insurance Premium Calculator

This calculator estimates a commercial vessel's annual marine insurance premium across three components: Hull & Machinery (physical damage to the vessel itself), Protection & Indemnity or "P&I" (third-party liability, simplified here as a flat percentage of vessel value rather than the per-gross-ton rating real P&I clubs use), and Loss of Hire (income protection while the vessel is laid up for repair, modeled as a flat 20% of the Hull & Machinery premium). The Hull & Machinery rate starts from vessel age -- older vessels carry more mechanical and structural risk, so the base rate climbs with age, capped at a 2% base rate before the trade-area and claims multipliers are applied, so the age component of the estimate doesn't run away for very old vessels on its own. That base rate is then multiplied by a trade-area risk factor (low, medium, or high risk waters), a claims-history factor (clean, minor, or major prior claims), and a deductible discount that reduces the rate as the chosen deductible percentage rises, reflecting how a higher deductible shifts more of the smaller losses onto the vessel owner.

Because Hull & Machinery, Loss of Hire, and total premium all scale directly off the same age-based base rate and the same trade-area/claims multipliers, vessel value is what ultimately sets the dollar scale of every premium component -- a $50 million vessel and a $5 million vessel with identical age, trade area, claims history, and deductible produce premiums exactly 10x apart. This is a simplified planning estimate, not an underwriting quote -- real marine insurers weigh vessel type, flag state, survey condition, and market capacity that this calculator does not model.