Ocean marine insurance protects goods and merchandise transported on shipping vessels. It covers both foreign and domestic waters and incorporates inland and aviation transport depending on its necessity for a specific shipment.
This blog discusses various aspects of ocean marine insurance coverage, including who must buy this insurance, the different types of coverage offered, and the policy types and variants.
Who Must Buy Ocean Marine Insurance?
Ocean marine insurance is a specialized insurance coverage that protects businesses from:
- Collisions with other ships or objects
- Sinking/ capsizing
- Bad weather
- Pirate attacks
The businesses that need ocean marine insurance coverage are not limited to only the transporting company responsible for the shipments but also other industries such as:
- Marine services and contracting
Types of Ocean Marine Insurance Coverages
Ocean marine insurance includes different types of coverage to cover the wide range of risks associated with marine transportation. While the ocean marine insurance coverages include several coverages, three of the most popular coverages are:
- Hull and Machinery Insurance
This insurance pays for physical damage to the shipping vessel caused by the sea or other covered peril while in water. Any damage to the hull and the ship’s operating machinery and equipment is covered.
- P&I Insurance or Marine Liability Insurance
Another essential ocean marine insurance coverage is protection and indemnity or marine liability insurance, which protects the insured if their ship’s operation causes injuries, illnesses, or even loss of life. It also covers:
- Damage to another ship and its property caused by their collision
- Damage to other ship or its property due to non-collision incidents
- Clean-up and removal of wrecked ship
- Cargo Insurance
Cargo insurance protects your financial interests if you suffer a loss due to damage or loss of the in-transit cargo. The coverage extends to cargo stored in a warehouse while in transit or shipped by land or air as part of the shipment process.
Types of Policies Offered
Besides the different types of ocean marine insurance coverage, you may tailor ocean marine insurance policies to suit the unique needs of your business. They include:
- Voyage Policy: covers you while the shipment continues
- Time policy: fixes a limited period within which the shipment must be completed
- Mixed (voyage + time) policy: combines both the above policies
- Open (unvalued) policy: estimates the value of cargo after loss
- Closed policy: estimates cargo’s value before transportation
- Floating policy: adds only the claim value at the start of shipment
- Single vessel policy: includes a single ship
- Fleet policy: includes multiple shipping vessels
- Block policy: extends coverage for cargo across sequential transportation options till final delivery
Cover Your Shipments with Premier Insurance
To ensure that your shipments have the right ocean marine insurance coverage that offers maximum protection to the ship and cargo, get the best insurance solutions from our Premier Risk, LLC team. Contact us today to get started.