Boat insurance is for recreational boaters while marine insurance is what the big commercial vessels require. This highly specialized form of business insurance is designed to cover specific damages and losses that involve the use of cargo vessels, ships and other forms of water-reliant transportation for goods. Several types of marine insurance are available to provide different protections—some you may need and others you might not.
Types of Marine Insurance
Like the ocean itself, the term marine insurance is a broad term that applies to three main coverage types that offer various levels of loss and damage protections for large vessels. Limitations for each policy will depend on the value of the contents, equipment and ship.
Physical damage to the vessel itself, onboard operating machinery and certain offshore equipment is covered under a hull insurance policy. These are limited to commercial crafts that are ocean bound such as tugboats, barges, floating equipment, and offshore rigs and platforms.
Marine Cargo Insurance
Got cargo onboard platforms or ships moving from port to port? Be prepared to handle any disruptions in shipping with cargo insurance in amounts adequate to cover both the products themselves and reshipping them but be prepared to pay any penalties from originating sources and intended receivers.
Marine Liability Insurance
This coverage is a form of protection for third-parties’ liabilities and is often called a P & I Indemnity. Marine liability insurance provides fiscal compensation in cases of injuries, loss of life or injury that is incurred due to the operation or while being a working crew member or passenger on a commercial ocean vessel or covered equipment or machinery operations. Medical expenses and those resulting from quarantine situations are also covered.
The chances of natural occurrences, border conflicts and even pirating is more common on the open seas that one might think. Protect your cargo and client’s interests with adequate marine insurance.