Commercial marine insurance covers property that is transportable, movable or involved in the transfer of products. This may include cargo damage or losses that occur on cargo vessels, ships, terminals, or the transport of goods between points of origin and their final destination. All types of businesses can benefit from commercial marine insurance, such as organizations that work with oil and similar products, and companies that offer cruises, fishing boat rentals, tours, or related services.
What is Commercial Marine Insurance?
Every business is unique and has its own set of goals and circumstances that they must overcome. Organizations that do business over the water face certain challenges and risks that could result in financial ruin if certain situations may occur. Commercial marine insurance can help minimize these risks by covering specified losses or damage to vessels. However, like most insurance policies, commercial marine insurance has strict policy requirements that you must be aware of. There are certain guidelines that you must adhere to when filing claims for reimbursement.
Commercial Marine Insurance Coverage Options
Commercial marine insurance can be purchased for a wide range of watercrafts, such as recreational boats, tankers, commercial fishing boats, and oil barges. Coverage can even be acquired for entire marinas and boat factories. Like other types of insurance, commercial marine insurance can be customized to meet the unique needs of a business. Companies have the option to choose their policy coverage limits, as well as their policy options, based on their needs and budget. Comprehensive protection can also be obtained to acquire more expansive coverage against various types of damage or loss, such as total or partial loss of goods while your cargo is in transit.
Hull insurance is a specialized type of insurance that offers protection against physical damage to a boat or vessel. It also covers operating equipment, such as machinery. Hull insurance covers all water vessels, but is limited to commercial ocean crafts like oil rigs, tugboats, barges, floating equipment, and similar vessels. Hull policies are typically distinguished by whether the incident occurs in blue water or brown water. Blue-water coverage refers to ocean-going ships and large vessels that are used in international trade or shipping. Brown-water coverage refers to vessels that primarily operate on or near coastal waterways.
With cargo insurance, businesses can maintain coverage for physical damage to cargo that travelled or conveyed as part of the shipment process. Coverage options can vary but some policies may include theft protection and coverage for certain types of losses outside of physical damage. Marine cargo insurance is one of the most common methods used to protect the value of goods from theft or physical damage. While you are not required to purchase cargo insurance, it is a smart choice if you wish to prevent your goods from being exposed to certain risks that could result in catastrophic losses.
Marine Liability Insurance
Marine liability insurance provides comprehensive protection against third-party liabilities that certain companies are exposed to during their water operations. This type of insurance typically covers illnesses, injuries, and sometimes even the loss of life due to vessel operations. Damage to cargo or other vessels, medical expenditures, collision incidents, and associated expenses due to quarantine may also be covered by some policies. As an organization that performs services over the water, having marine liability insurance can come in handy. For example, your policy would cover any damage that occurs during loading or unloading, or from unsafe wharf conditions.
Who Should Acquire Commercial Marine Insurance?
You may be wondering if your business actually needs commercial marine insurance or if you can get by without it. While it is true that a commercial marine insurance policy will result in an extra payment, the amount that you will save with one just claim far outweighs this cost. Any business involved in the maritime industry, such as gaming vessels, cargo ships, cruise ships, terminal operators, stevedores, tug and tow boats, mega yachts, and passengers’ boats can benefit from having a policy. If you are not sure if you should acquire a commercial marine insurance policy, speak with an experienced specialty insurance broker.
Speak to an Experienced Specialty Insurance Broker
Today, there are countless laws and policies that govern how commercial vessels and cargo are transported to ensure that products and people remain safe on the water. Unfortunately, certain risks still remain despite strict safety regulations. Transporters are not able to control hazards like cross border conflicts, pirates, and natural occurrences that may develop while performing their duties. Without the proper protection, your business could face a number of financial hardships. That is why many businesses in the industry rely on commercial marine insurance. For more information about commercial marine insurance or to acquire a policy, speak to an experienced specialty insurance broker at the offices of JMG Insurance Agency.