Providers follow narrow guidelines when reimbursing claims, and a single deviation to the route might result in a loss of coverage. With this in mind, it’s essential to understand your policy and ensure you have proper coverage.
Ocean Marine insurance covers damages or losses of goods shipped by sea from the start of the shipping process up to the moment it arrives at its destination. It also covers cargo while in a port warehouse or on rail transportation if it’s a continuation of the previous cargo journey overseas.
Ocean Marine insurance is such a broad term that it’s usually applied to a group of coverages to protect against certain losses or damages. There are three common types that provide different protections:
Offering protection for physical damages to the boat or vessel and its operating equipment, including machinery, Hull Insurance is applicable for all water vessels and limited to commercial-based ocean crafts.
While focused on providing coverage for physical damage to the cargo transported as part of the shipment process, Cargo Insurance policies can be customized to offer protection for other forms of losses as well.
Offering protection for third-party liabilities during water operations, Marine Liability, also called P&I or Protection and Indemnity, includes coverage for injuries, illnesses, or even loss of life caused by vessel operation.
Ocean Marine insurance limits
Limits will depend on the terms of your policy and the valuation formula of the provider. When assessing limits of Ocean Marine insurance, the value of goods, types of products, and transportation routes are considered.