In the shipping business, things can and will go wrong. That’s why marine insurance exists. Marine insurance covers your business against losses from natural disasters, accidents, and other unforeseen circumstances that could put you in a tight spot financially. Your company might not be able to get back on its feet if you don’t have the right coverage at the right time. You need to understand what marine insurance is, who needs it and how much coverage you need to protect your business. Let’s take a closer look at everything you need to know about marine insurance as an owner of a shipping company.
What is Marine Insurance?
Marine insurance is a type of insurance that protects the owner of a ship against financial loss due to damage to or loss of the ship, cargo, or loss of earnings as a result of voyage delay or cancellation. Marine insurance is also known as “shipping insurance” or “freight insurance.” Marine insurance covers the loss of or damage to property, damage to or loss of the ship, legal liability, crew wages, and voyage delay or cancellation. Marine insurance falls into two categories: commercial marine insurance and yacht marine insurance. Commercial marine insurance covers larger vessels like cargo ships, tankers, and passenger ferries. Yacht marine insurance protects smaller vessels like boats and yachts.
Benefits of Marine Insurance
There are many reasons why you’d want to make sure your shipping company has marine insurance. Let’s take a look at some of the most important ones:
- Ship Damage or Loss– Marine insurance covers the cost of repairing or replacing your ship if it is damaged, lost, or stolen. If you don’t have marine insurance, you’re responsible for covering those costs on your own.
- Cargo Damage or Loss– Marine insurance covers the cost of replacing or repaying your clients if they lose their cargo due to any reason, including things like theft, natural disasters, or accidents. You don’t want to let down a client and lose future business because you didn’t have marine insurance.
- Legal Liability– Marine insurance covers any legal costs associated with injuries to people or damage to property caused by your employees or your company. You don’t want to be held liable for something your employees did if you don’t have marine insurance.
- Peace of Mind– As a marine business manager, you most likely understand the daily stresses and fast-paced nature of this business. Accidents can happen at any time, and you don’t want to be caught unprepared when they inevitably do occur. With a properly designed marine insurance plan, you can focus on getting work done and not on how you will pay for the damages related to a recent accident.
Who Needs Marine Insurance?
Almost everyone who works in the shipping and transportation business needs marine insurance. This includes owners of shipping companies, ship operators, tug boat operators, and other people who work in the business. Anyone whose job involves the transportation of goods by boat needs marine insurance. Marine insurance is required for many types of ships, ferries, and boats. If you don’t have marine insurance and you’re required to have it, you could face fines or other legal consequences.
What does Marine Insurance Cover?
Our warehouse-to-warehouse insurance policy covers physical loss or damage to your goods from external causes including the following;
- Expenses incurred to prevent or mitigate a loss.
- General Average losses and General Average contributions.
- Landing, warehousing, and forwarding charges incurred as the result of an insured peril.
- Loss or damage resulting from war risks, strikes, riots, and/or civil commotion.
- Theft and Hijacking.
- Shortage and Non-delivery.
- Loading and unloading
The cover can be extended to cover the following at a premium to be agreed upon
- Concealed damages
- Storage beyond 60 days Documents required for cover placement
- A copy of the bill of landing
- Packing list
- Supplier’s Invoices Some Common Policy Exclusions
- Loss, damage, expense attributable to the wilful misconduct of insured
- Ordinary losses such as loss in weight or volume of insured items
- Loss, damage, expense caused by insufficient, unsuitable, or defective packing or preparation of goods. ‘Packing’ includes stowage in a container or lift van but only when such stowage is done before attachment of insurance or by the insured or their servants
- Loss, damage, expense from insolvency or financial default of owners, managers, charterers, or operators of the vessel
- Nuclear weapons risk
- Loss, damage, expense caused by or resulting from strikes, lockouts, labor disturbances, riots, civil commotions or caused by any person Loss, Damage, or Expense arising from:
- Unseaworthiness of vessel or craft
- War and strikes covers are available at an additional premium
How to Find the Right Marine Insurance Company?
In a global economy, moving goods around the world can be a risky business. Organizations and individuals need to protect their cargo to remain in business.
Whether you ship by sea or air, the Heritage Insurance Marine Cargo cover provides you with solid protection from the moment your goods leave the warehouse until they arrive at their eventual destination.
To find the right marine insurance, you’ll need to know how much coverage you need. You can start by asking your accountant for an estimate of your insurance needs. You can also come to us at Shimin Insurance Agency, and we will help you find the right marine insurance company for you.
Marine insurance companies have different coverage amounts and benefits. So, it’s important to choose the right company and the right amount of coverage for your needs. Marine insurance companies will ask you questions about your business and what you do to help figure out your insurance needs and coverage amounts. You may be asked about your employees, their experience, the type of ship you own, and any other factors that may impact your needs. It’s important, to be honest, and provide accurate information. You can expect marine insurance companies to ask you questions about your business when you start applying for coverage.