Marine insurance is a contract signed by a policyholder and an insurance company to protect and cover goods that are being transported from the country of origin to the destination country.
The contract is to make sure that the goods to be transported are safe and also land safely at their destination. Marine insurance policy includes it as a standard and it is meant for protection and indemnity.
If you are into the business of transporting goods from one country of origin to another. Trading within the country, international export or import, transposing your belongings or properties from one place to another either as a brand or a person.
If you are involved in any of the above-listed activities in any way and any form, then marine insurance is the cover you need. Marine insurance covers you or any other individual against the loss or damage of ships, cargo, or terminals.
And or any other transport means by which the intended property is transferred, acquired, or held unto between the points of origin and the final destination.
So if you are into the said type of business or you do it sometimes for some reasons, then you need a cover.
What Is Marine Insurance?
Marine insurance is the cover you provide for your goods, products, or items on either cargo, terminal or ship. The transportation which is usually from an origin to a final destination, of the items.
It is a cover you get against an event of loss, damage or theft of your items. The experience from a lost, stolen or damaged item could be heart breaking. Imagine you are into international importation and exportation. On a special occasion, when you are sending in goods they get stolen at the airport.
You do not need to be reminded of the heartbreak you will face or the number of tears you will shade. So, in a bid to avoid that kind of situation or occurrence, marine insurance would take you through that.
Why Do You Need Marine Insurance?
Transferring your goods from one place to another could be risky, whether cargo or inland, marine insurance is very important for every business person. If you are an importer or exporter, you necessarily need to get your marine insurance cover to be free against loss and other encounters faced by importers and exporters.
You can imagine losing your goods that cost a huge amount to purchase, maybe it was misplaced. Assuming you were To lose your whole goods in transit, you would discover that it is an ever-lasting heartbreaking occurrence.
And for the fact that accidents or other damages can be unforeseen and therefore, can not always be avoided in total, It is just one way that there is out of the issue of losing your goods on transit, having it damaged or stolen.
And that one way is to get marine insurance cover for your finance and your goods on transit. Most time it is not just the financial loss, damage or theft of your goods that you stand to loss or you risk if you fail to get your marine insurance.
You could also lose the trust of your buyers in a case where for instance, the goods get damaged on transit. Usually not every buyer that would understand whatever explanation you may have to give for the damages.
So in such cases, trying to explain to such buyers or customers may not be worth it because every attempt would be worthless.
The only thing you need to do to avoid such events from taking place is to get the insurance cover that would prevent them from totally occurring and also save you the stress that comes with it.
Who Needs Marine Insurance?
If you are a business person who always has to transfer goods from one place to another, one country to another or within. You should know and be aware that you will be prone to facing challenges as regards transportation and natural occurrences. It is important to get a cover for your goods on transit and to also cover your finances.
Whoever that has a business establishment and it involves transporting, whether importing or exporting the goods. It could be that you are importing the goods for your sales or you are sending them to your customers who want them and have requested for them.
Types of Marine Insurance
The types of marine insurance that are all available for the benefit of a client are many, and all of them are feasible in their own ways. Depending on the nature and type of a person’s business, they can decide to opt for the best marine insurance plans and be able to enjoy the benefits of having marine insurance.
The different types of marine insurance are in the list below:
- machinery insurance
- Hull insurance
- Freight insurance
- Liability insurance
- Marine cargo insurance
Freight insurance
This type of marine insurance is designed to offer or provide cover for merchant vessels’ corporations. Also, they may stand a chance of losing their money in the form of freight in a case where the cargo is lost due to a case on the ship.
This type of marine insurance is also responsible for solving the problem of companies losing their money as a result of a few unforeseen events and accidents occurring.
Liability Insurance
This type of marine insurance is that type which provides cover where compensation is sought to be provided to any liability occurring the occurrence is on account of a ship crashing or colliding with another.
It could also be on account of any other induced attack while the shipment was still on the transit.
Hull Insurance
This type of marine insurance is meant for mainly catering for the torso and hull of the vessel along with all the articles and pieces of furniture on the ship.
In this type of marine insurance, the cover is mostly taken out by the owner of the ship to avoid any loss to the vessel in case of any mishaps occurring.
Marine Cargo Insurance
This type of marine insurance is designed to protect the cargo owner against damage or loss of cargo resulting from a ship accident Or as a result of a delay in the voyage or the unloading.
Marine cargo insurance has third-party liability that comes with it for covering the damage to the port, ship or other transport forms.
What Does Marine Insurance Cover?
There are different things that the marine policy covers the business persons against.
Some of the things that the policy covers include :
- Damage to the goods on cargo: The policy will cover on the cost of your goods against damage.
- Loss of shipment: If you happen to lose your goods on the ship for any reason, your policy providers will cover the cost of the goods.
- Damage to shipment.
Types of Marine Policies
- Fleet Policy: In this type of policy, several ships that belong to the same owner are insured under the same policy.
- Block Policy: This policy also comes under maritime insurance it is there to protect the cargo owner against damage or loss of cargo in all modes of transport.
- Floating Policy: This is a marine policy where only the amount of claim is specified and all other details are omitted till the time the ship embarks on its journey. It is meant for business people who undertake frequent trips of cargo transportation through waters. It is recorded as the most ideal and feasible marine cover or policy.
- Single Vessel Policy: This policy is fitting for small shipowners who only have one ship or one ship in different fleets.
- Voyage Policy: A voyage policy is that kind of marine coverage that is valid for a particular voyage.
- Time Policy: This policy is valid for a specified time period – generally valid for a year – is classified as a time policy.
- Mixed Policy: This is the type of policy which offers a policy holder the benefit of both time and voyage policy is recognized as a mixed policy.
FAQs About Marine Insurance
Is marine insurance compulsory
Yes. The marine insurance policy is important for every business person who transports their goods.
What is the cost of marine insurance
There is no fixed cost for marine insurance, the cost of your insurance policy is determined by the kind of business and weight of goods.
What does marine insurance cover
Marine insurance covers your shipments in cases where they are lost or damaged while on transit.
