What Is Ocean Marine Insurance?
It is a type of transit insurance which protects goods and merchandise that are being transported by vessels over foreign or domestic water. It also involves coverages for damages sustained by the vessels during shipments.
Depending upon the insured entity or companies requirements, ocean marine insurance can undergo the form of a number of distinct contracts. The insurance policy promises protection against all sorts of risks.
Coverages by Ocean Marine Insurance
This type of insurance policy provides protection against a wide array of damages that may occur during the course of shipment. These may encompass perils of the nautical journey such as:
1. Collision with icebergs or another vessel
2. High waves
4. Ship hull failure
It also encompasses damages or harm caused by jettison, pirates, and barratry which is a fraudulent breach by the ship’s owner that includes embezzling the cargo, deserting or stealing the ship.
Some of the most popular coverages included in ocean marine insurance policies are:
Cargo Insurance Coverages
This type of insurance compensates the shipper of the merchandise/goods if damages have been sustained. The cargo can be insured in any one of the two following ways that depends on the particular insurance requirements of the shippers:
1. A single shipment only
2. Automatic coverage for each and every shipment
Freight Insurance Coverages
This type of coverage backs up the owner of the ship financially that is carrying the goods in case of any misfortunate event when the cargo and merchandise is either harmed or lost.
Protection & Indemnity Insurance Coverages
This type of insurance is for the protection of the owner of the ship. It protects the vessel’s owner against any legal binding or liability which may arise because of physical body injuries or damages to the properties belonging to others.
Hull Insurance Coverages
This type of coverage is somewhat similar to the coverage policies of auto insurance in case of a collision. Anything that has the potential to cause damage to the vessel or the ship is protected through this insurance policy. If you are deciding to purchase this policy, then it is important to note that you may have to pay for certain deductibles in case of the event of covered losses.
The hull insurance coverage also has a unique feature called the collision liability coverage which provides liability coverage to the owner of the ship or the vessel in any event when it causes harm to any other vessel or the cargo being transported by that ship. The only drawback is that this provision does not account for any liability that causes bodily harm to others.