In practice the armour helps to absorb damage that would affect the shields, although if a truly concentrated attack occurs then localised penetration and energy damage may still occur. This is especially true of missile attacks, which can still cause internal damage and equipment failure due to concussion effects. The current strength of the armour can be viewed on the ships manifest (F5-F5) screen, and any damage can be repaired at a suitably high-tech station.
The armour itself is available from all good tech 5 locations, for a recommended retail price of just 750 credits for each section (forward and aft sections are installed separately due to ships mass and shielding interaction requirements). These stations should also be able to quote for repairs to damaged shields. It should also be noted that insurers class armour as a combat consumable, and so its replacement is not included as part of the insurance for equipment such as escape pods and lifeboats.
A special enhanced upgrade for military uses has also been developed, and may be available to customers at tech 10 systems (the upgrade requires an undamaged civilian-grade installation). The upgrade doubles the effectiveness of the regular armour.
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With thanks to ClymAngus for the original discussion and inspiration, and to Caracal and UK_Eliter for beta-testing.
And to save comments, yes ideally shields should go before armour, but code-wise that isn't possible to do without the armour supporting things like ECM and cloaking as well, which would just be odd
