Marine insurance is a specific type of transit coverage that protects merchandise and products that are being shipped across domestic and international waters.  It will also cover any damages that are incurred during shipment.  Depending on the company’s or insured entity’s requirements, this type of insurance can take on the form of a number of different contracts.  Basically, the policy promises to protect against all types of risk.

Marine Insurance Coverages

Marine insurance policies cover and protect against a broad range of damages that can occur while shipments are in transit.  There are a number of perils to be aware of when it comes to journeys occurring on the water such as:

  • collisions with other vessels
  • extremely high or rogue waves
  • hull damage and failure
  • shipwrecking

It also protects against damages attributed to barratry (a fraudulent breach committed by the owner of the vessel), jettison, or pirates.  Barratry includes cargo embezzlement and deserting or stealing the vessel.  Some of the more popular coverages in a marine insurance policy include:

Cargo coverage – this compensates the shipper for any damaged merchandise or products.  Depending on the shipper’s specific insurance requirements, the cargo is usually insured in one of these ways:

  • Automatic coverage for every individual shipment
  • Coverage for a single shipment only.

Freight coverage – financially backs the ship’s owner that is transporting the goods in the event of misfortune when the cargo gets damaged or is lost.

Hull coverage – in a sense, this is similar to auto insurance coverage in that it covers the vessel and its cargo in the event of a collision.  Basically anything that can damage the ship or vessel is protected by a hull insurance policy.  If you decide to purchase hull coverage, it is important to understand that certain deductibles may have to be paid for in the event that there are losses that need to be covered.

Another unique feature of this marine insurance coverage is “collision liability” coverage which protects the owner if their ship or vessel causes damage to the cargo in transit or any other vessel.  There is only one drawback – it doesn’t account for physical harm to others that are caused by a liability.

Indemnity and protection coverage – this coverage protects the ship’s owner.  It also protects the owner of the vessel against and liability or legal binding that arises due to bodily injuries and damage to properties that belong to other entities.

Most marine insurance policies can be custom-tailored with certain coverage options that will fully protect a business and its company at great value.  You can also find this type of special coverage for boat dealers, manufacturers, marinas, and yacht clubs.  Naturally, you should always discuss your options with your insurer at all times. It is best to get more clarity on the terms and conditions before you purchase the insurance cover.

Call 1-800-585-1665 today to request a quote from InsureAnyBoat.com.