Customized Marine Insurance

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To help reduce the financial risk of companies in related marine industries, marine insurance policies can be created. Marine insurance commonly covers the loss or damage of ships, cargo, and ship terminals.

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Customized Marine Insurance

  1. 1. Customized Marine InsuranceThe ocean can be a hazardous place, with potential problems lurking at everyturn. Storms, rough waves, underwater hazards, and others can poseproblems for maritime transport. To help reduce the financial risk ofcompanies in related marine industries, marine insurance policies can becreated. Marine insurance commonly covers the loss or damage of ships,cargo, and ship terminals.Since there are both commercial and personal aspects to marine insurance,the types of policies and coverage can vary widely. Commercial marineinsurance can include cargo insurance, hull insurance, liability insurance, andfreight insurance. Cargo insurance covers the cargo onboard the ship, as wellas the belongings of the people on the ship. Hull insurance protects the costsof repair to the hull of the ship in case of damage, as well as much of theequipment and furniture on the ship that is not cargo. Marine liabilityinsurance provides compensation if a ship crashes or collides. Freightinsurance protects merchant vessel corporations from financial responsibilityin the event of lost cargo from one of their ships. These commercial marineinsurance policies can be broken down or have variants to allow formerchants the flexibility to create a marine insurance policy that fits theneeds of their business.For more personal marine insurance policies, coverage like cargo and freightinsurance is not needed. However since boats and yachts can be significantinvestments, boat insurance is necessary to protect the owner from financialresponsibility in case of an unforeseen event. Additionally, many statesrequire boat insurance, just as most states require auto insurance to protectthe monetary damages motorists can inflict on each other. Boat insurance is
  2. 2. actually available as a form of marine insurance, or as an additional coverageon a homeowners’ insurance policy. Water craft liability insurance is the mostbasic form of personal marine insurance available. Water craft liabilityinsurance covers damage to people or property due to actions on the boat,whether it is in the water or being towed to or from the water. Sometimesadded to personal boat insurance is a medical payment insurance that coversmedical expenses of the operator and passengers in the boat if they injured inan accident covered by the liability marine insurance. Wreck removal andpollution coverage is another recommended marine insurance addition tothe standard boat insurance. After a boat is wrecked, removal is required ina timely manner. Depending on the damage to the boat and whether it hassank or not, this can be a costly undertaking, especially since the turnaroundfor removal must be expedient. Also, if any gasoline or oil leaks, the owner ofthe boat will be fined for the pollution to cover the cleanup costs. Wreckremoval and pollution marine insurance coverage ensures these costly billsare not solely covered by the owner of the boat.Similar to cars, many boating accidents take place within a short distance ofthe home port, so marine contractors’ insurance can be helpful coverage.Marine contractors’ insurance covers workers in the port or marina wherethe boat or ship is docked, sheltering the owner from costs if a dock contractworker is injured while attending to their craft.Marine insurance can protect one of the most significant investments peoplemake outside of their home. While the insurance coverage varies dependingon the type of boat or ship and the purpose, the insurance can more than payfor itself in the event of an unforeseen accident. Getting the right coverageand the right marine insurance policy is important, so asking questions toinsurance agents to find out all the details is a must.

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