Does part of your business or personal experience involves shipping materials or goods overseas? Since it’s important to protect valuable assets during the shipping process, consider ocean marine insurance for items transported by sea. Here’s a deeper look at ocean marine insurance, who needs it, and what it covers.
Who Needs Ocean Marine Insurance Coverage?
A wide range of international businesses uses ocean marine insurance coverage if their assets are transported via container ships, ferries, tankers, and cargo vessels. Professionals in the fishing industry who ship products by sea use this coverage to protect against financial losses. Others who need this insurance include contractors, terminal operators, and ship repair teams.
Why Do You Need Ocean Marine Insurance?
Transporting items by sea carries many risks, just as other forms of transportation do. A vessel with a faulty radio communication system may crash into another vessel and damage cargo. Some vessels have been severely destroyed by hurricanes, in which all cargo was wiped out. This coverage pays to replace items damaged via shipping.
What Do Ocean Marine Policies Cover?
Ocean marine policies are designed to focus on shipping concerns such as asset protection and legal liability. Various maritime policies exist for different types of risks. Hull insurance coverage protects the vessel and its installed equipment. This coverage also pays for property damage to third parties.
Marine cargo insurance protects organizations transporting goods over foreign or domestic waters. This coverage is often customized for different types of businesses. It protects items stored in a warehouse and items with concealed damage.
Ship owners can protect themselves against indemnity with a marine general liability insurance policy. It pays for bodily injuries or death of crew members or passengers. The accident might involve a collision with another ship. Overall, this coverage is much like a general business liability policy.
What Is Excluded from Ocean Marine Insurance?
Be aware that certain exclusions exist with ocean marine insurance, depending on the policy. Ocean marine insurance isn’t an option for owners of passenger ships. Many of these policies only cover items when they are transferred by sea, so you may need additional coverage for land transport.
Ocean marine policies usually do not cover temporary storage or the cost of shipping delays. Other scenarios in which no coverage is offered include civil strikes, employee fights, and damage from acts of war. Certain exclusions can be added to a policy as extensions.
What Is the Average General Principle?
The average general principle is unique to maritime insurance. This rule allows ship officials to throw the cargo overboard during a storm or some other emergency. Under this principle, each individual on board contributes to replacing lost cargo.
How Much Does Ocean Marine Insurance Cost?
The pricing of ocean marine insurance widely varies since it’s commonly customized. Some of the key factors that affect cost include the value of goods being shipped, routing risks, and coverage limits.
Why Choose Premier Risk, LLC for Contracting Insurance?
Premier Risk, LLC has been a family business since 1986 that resolves personal insurance and business insurance needs. Contact the agents at Premier Risk, LLC, to learn more about protecting your valuable belongings during the shipping process.
