How Much Does Ship Insurance Cost? 1. Hull and Machinery Insurance (H&M) Typically 0.5% to 1.5% of the ship’s total value annually Example: If the ship is worth $10 million, insurance might cost around $50,000 to $150,000 per year. 2. Protection and Indemnity Insurance (P&I) Usually based on the size of the ship, number of crew, trading area, type of cargo, and risk profile. For a medium-sized cargo vessel, P&I insurance can cost around $50,000 to $200,000 per year or more. 3. Cargo Insurance No