What Is Ocean Marine Insurance?
It’s a kind of transit insurance that protects goods and merchandise that are being carried by vessels over domestic or foreign water. It involves coverages for damages sustained by the vessels during shipments as well.
Depending upon the insured item or companies needs, ocean marine insurance be able to undergo the form of an amount of different contracts. The insurance policy promises protection against all sorts of risks.
Coverages by Ocean Marine Insurance
This kind of insurance policy offers protection against a wide array of damages that may happy whilst the course of shipment. These may revolve perils of the nautical journey such as:
- Collision with another vessel or icebergs
- High waves
- Ship hull failure
It encompasses damages or harm caused by barratry, pirates and jettison that is a fraudulent breach by the ship’s owner that includes embezzling the cargo, stealing the ship or deserting as well.
Some of the most popular coverages included in ocean marine insurance policies are:
Cargo Insurance Coverages
This kind of insurance recompense the shipper of the merchandise/goods if damages have been sustained. The cargo can be guaranteed in any one of the two subsequent means that depends on the particular insurance needs of the shippers:
- A single shipment only
- Automatic coverage for every and each shipment
Freight Insurance Coverages
This sort of coverage compensates the possessor of the ship financially that is carrying the goods in case of any disaster occurrence when the cargo and merchandise is either missed or harmed.
Protection & Indemnity Insurance Coverages
This kind of insurance is for the guarantee of the possessor of the ship. It protects the vessel’s owner against any legal binding or liability that may occur because of physical body damages or injuries to the properties belonging to others.
Hull Insurance Coverages
This kind of coverage is somewhat similar to the coverage policies of auto insurance in case of a crash. Everything that has the possibility to cause damage to the vessel or the ship is protected through this insurance policy. If you are deciding to buy this policy, then it is important to note that you may have to pay for some deductibles in case of the occurrence of covered losses.
The hull insurance coverage also has a unique feature called the collision liability coverage that offers liability coverage to the owner of the ship or the vessel in any event when it makes harm to the cargo being transported by that ship or to any other vessel. The only drawback is that this condition doesn’t rationalize for any liability that causes bodily harm to others.