Ocean Marine Insurance Explained
Ocean Marine Insurance is one of the oldest types of Insurance in the world, and forms of it can be traced back to the Chinese and Babylonian traders in the 3rd and 2nd millennia BC. What we would recognize today as insurance for the vessels was really started to take form in the 1600s out of merchants’ desire to protect themselves from the heavy losses they could face in an age when shipping was a very dangerous venture. Over the years, Ocean Marine Insurance has expanded to provide more and more loss protection. It even sparked the growth of Inland Marine Coverage Insurance.
Ocean Marine Insurance is a broad term that is primarily a group of three coverages that address the primary areas of loss for vessel owners.
1. Hull Coverage
Ocean Marine Insurance – Hull Coverage offers protection for physical damage to a vessel and any of its operating equipment and machinery. Any vessel, not just ocean-going commercial crafts, can benefit from Ocean Marine Insurance – Hull coverage. Tugboats, barges, other miscellaneous floating equipment and even some fixed properties, including offshore oil rigs and similar installations, are all candidates for Ocean Marine Insurance – Hull coverage.
2. Cargo Coverage
Cargo that is waterborne during any part of the shipment process can be covered for physical damage by an Ocean Marine Insurance – Cargo policy. Some policies may also offer protection from theft and other forms of loss besides just physical damage. Policies can be taken out for individual shipments or, may be configured to policy period.
3. Liability Coverage
Marine liability is most commonly known as Protection and Indemnity Coverage aka P&I. It covers the wide variety of third-party liabilities that an owner is exposed to during a vessel’s operation. Some things covered by P&I include:
- Injury, illness or loss of life caused by a vessel’s operation
- Medical expenses relating to any injury, illness or loss of life
- Damage to other vessels or property caused by collision
- Damage to other vessels or property caused by incidents other than collision
- Wreck cleanup and removal
- Damage to cargo in certain situations
- Expenses resulting from quarantine
To Learn More About Ocean Marine Insurance Or For An Ocean Marine Insurance Quote Speak To An ALIGNED Insurance Broker Or Connect With Us Today At www.alignedinsurance.com
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