Marine insurance refers to a wide array of equipment and expenses, which can make it hard to know which types of coverage you need and which ones are actually required by law in your state. Working with an ocean marine insurance professional can help you narrow down the needs, insurance requirements, and specifications of the equipment you own.
So, what is ocean marine insurance?
What Is Marine Insurance?
Ocean marine insurance may make you think that this kind of insurance is primarily for just personally-owned boats. Ocean marine insurance is a specific kind of insurance that protects personal boats, yachts, as well as goods and vessels crossing domestic and international waters by sea, land, or plane.
If you own a marine vessel that you use for commercial purposes or you contract with another company to transport your goods and merchandise, you may require this kind of insurance. An insurance policy is most often taken out by businesses in the following industries:
- Marine services and contracting
- Marine transportation
- Personal boat/yacht owners
Why Marine Insurance Is Important?
Marine insurance is essential because, as you most likely know already, working with boats in general is a very risky business. Collisions can happen at any time by accident, the weather can cause severe damage, and goods can be lost in the blink of an eye.
For this reason, it is essential to reach out to an insurance professional in order to find the plans that are right for your specific needs. There are a variety of different ocean marine insurance plans, so finding the right one for you can be a little difficult on your own. The last thing you want is to overpay for an insurance plan with coverage details that do not suit your unique needs as a person or business.
Types Of Ocean Marine Insurance
As we mentioned, ocean marine insurance policies can cover a variety of risks. In fact, this insurance is an umbrella term for three kinds of coverage:
- Cargo coverage
- Hull (vessel) coverage
- Liability coverage
Let’s take an in-depth look at each type of policy:
If you have vessels that carry international imports and exports, ocean marine insurance is a necessity. It will protect you in the inevitable event of one of the following:
- Lost cargo – Should the shipment you’ve promised your clients never arrive—whether due to a collision or misplacement—you could be liable.
- Lost revenue – Should a shipment be delayed for so long that your client no longer needs the goods and refuses to complete payment, you could suffer a financial loss.
- Legal liability – In a situation like the above, a client could take you to court to sue you for the payments they’ve already made on lost, late, or damaged goods. Without insurance, you may be responsible for your own legal fees (depending on the specifics of your other insurance policies).
Hull (Vessel) Coverage
Ocean marine insurance can also provide coverage against damage to a ship’s hull, or machinery, and will protect you if you lose a ship. If you own or operate a marine vessel for commercial purposes, this kind of policy may be essential to protecting your yacht, ferry, or boat and will save you an immense amount of money in the event of a bad accident.
Similar to general liability insurance, coverage can help to protect vessel owners from claims of bodily injury, personal injury, and property damage related to their services. Liability coverage is closely related to Protection and Indemnity insurance, which covers liability against claims from your crew as well as liability from risks that are related to the hiring of the ship (e.g. cargo-related claims).
Why Marine Insurance Is Essential
Marine insurance is especially important due to the high-risk nature of the industry and the unpredictability of the sea. Accidents happen all the time, and you never know when something may go wrong with the equipment or the weather during a voyage. Having a personally designed insurance plan can help you avoid extreme monetary damage without overpaying for elements of coverage that you may not even need.
Work With JMG
Ocean marine insurance is not something to lapse on. If an accident happens and you aren’t covered, you will pay for it financially in a big way. Trust the experts to help match you with a cost-effective plan that fits your needs. Reach out to JMG today.
JMG Insurance has been servicing the insurance needs of the Fairfield County area since 1916. Their team strives to make the insurance process as simple as possible for our clients while matching them with the right plans for their needs.