Marine insurance is often misunderstood by many people who need it due to the complex nature of marine business. Many ships travel internationally, which can make the regulations and requirements for insurance a little more difficult to understand. Regardless, it is crucial for businesses involved in any type of marine business to be properly insured in order to avoid extremely costly situations in the event of an accident.
While specific terms and benefits vary widely across the world, many marine insurance policies are custom-tailored for specific shipments. A few general principles apply to the entire industry that are important to understand.
What Does Marine Insurance Cover?
Marine Insurance covers businesses that operate in the water. Whether for trade, travel, or leisure, these businesses face unique risks that require specially tailored coverage plans. Some of the main portions of coverage include:
Coverage For Goods
While there is no law against carrying or transporting freight without insurance, this could mean financial ruin for you if you are not covered in the event of an accident. Without insurance, you would be personally responsible for the costs of the damages as well as all of the lost goods. Ensuring that your marine insurance plan includes sections that discuss coverage for the goods being shipped is essential.
Covered Perils
The covered perils that are included in many marine insurance plans often vary based on the client’s unique needs. The most common perils listed include theft, vessel sinking, improper handling of the ship, hijacking, saltwater exposure, and more. The key here is to know that when working with an insurance specialist, you can be sure that you will get all of the necessary coverages relevant to your operation.
Covered Locations
It is important that your insurance policy is very clear about the locations it covers. Policies are available to protect goods while in transit, but damage can also occur while the ship is in port, while the goods are in transit to the warehouse, or while they are at the warehouse itself. These variations make it crucial to be covered in the same way at all of the locations your business interacts with.
What Are The Benefits Of Marine Insurance?
Now that we have a better understanding of the most common coverage types found in common marine insurance plans, let’s take a look at why these plans are so important. Marine insurance plans are essential for a variety of reasons. One of the main reasons is that when it comes to watercraft and seafaring vessels, accidents are very common. Not only that, but they are also very expensive! Getting a personalized marine coverage plan can be the difference between a small accident and one that puts you in a very financially binding situation.
Some of the main benefits of marine insurance include:
Save Money
As we mentioned, boat repairs can be extremely costly. Whether for maintenance or the result of an accident, these repairs can run you tens of thousands of dollars if you are not properly covered!
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 about how you will pay for the damages related to a recent accident.
Liability Coverage
In the same way that you could hit another car on the road, accidents can also take place in the water. If you’re found to be the one at fault for an accident that involves another watercraft or person, you’ll require liability insurance to cover the damages and legal costs associated with this accident. Considering how expensive boat accidents can be, this is a significant kind of coverage and an important advantage of having a well-designed marine insurance plan tailored to your needs.
Marine insurance plans, as you can see, are of vital importance to businesses involved in the marine industry. They can help you be protected from all of the main risks that your business faces while also ensuring that you can focus your energy on running a great business, and not on your insurance concerns. If you are wondering about what your business may need, reach out to a marine insurance specialist today to learn more.
Contact JMG Today
JMG Insurance Corp has been servicing the insurance needs of the Fairfield County area since 1916. Their agency was built on the principles of providing superior customer service and quality insurance solutions, and they work hard to uphold these values today.
