A must-have if you are business of shipping and logistics, marine insurance provides coverage to any damage or loss caused to your cargo, ship, or vessel due to natural or man-made disasters such as earthquakes, fires, explosions, collisions, navigation errors, pirate attacks, etc.
It’s one of the most essential business insurance plans that provides a solid financial backup if your cargo or ship falls prey to the above perils. While you can buy marine insurance online or offline, it’s vital to know the different types of marine insurance policies available, which will help you make an informed choice. Given below are some of the most common marine insurance plans from insurers.
Marine Cargo Insurance
Marine cargo insurance is a type of marine insurance plan that provides financial coverage for losses or damages suffered by the cargo in transit. This policy also covers damages suffered due to delays in voyage, accidents, or during unloading.
That’s not all. A marine cargo insurance plan also covers third-party liabilities arising from damages caused to the ship or port. In a nutshell, this insurance plan provides comprehensive coverage against any damages suffered in any form by the cargo.
Hull Insurance
If you are looking for insurance coverage to protect the ship and its articles, then you need to opt for hull insurance. This type of marine insurance plan provides financial coverage in case the ship’s torso — including its machinery, furniture, or internals — suffers any damage in any form.
Hull insurance plans offered by some insurance companies also provide coverage against operational damages suffered by the ship in any form. It’s an essential type of marine insurance plan that shouldn’t be overlooked.
Liability Insurance
When a ship sails on the ocean, it can suffer a crash or collision that could result in huge financial loss or damage. More often than not, these liabilities are beyond one’s control.
A liability insurance plan offers coverage in such scenarios to cover damages suffered by the ship that’s incurred during the voyage.
Freight Insurance
Sometimes, due to unavoidable circumstances, freight may get lost or damaged during transit. This could result in substantial financial losses.
However, things are different if you have a freight insurance policy in place as it compensates for the losses suffered. On several occasions, this insurance is mandatory, especially for overseas trade.
In Conclusion
These are some of the types of Marine Insurance plans that you can purchase as per your needs. Compare quotes and read the fine print before buying to seal a profitable deal.