So here you are—ready to export your consignment via water. While you are taking all the necessary steps to ensure the safe transit of goods, have you bought a marine hull insurance policy?
Marine hull insurance is an essential insurance policy that covers the insured vessel or fleet against various types of losses or damages caused by different perils of the sea while the vessel is still in transit.
So, before you export your goods via water, we strongly recommend you purchase hull insurance because of the following reasons –
It curtails exposure to financial loss
While you might have bought the marine cargo insurance to secure your consignment, what about losses or damages which may happen to your vessel or its machinery? Do you know, that if the loss is substantial, the cost of repairing a ship’s body and machinery can go into lakhs?
Therefore, it is necessary for shipowners/operators, shipping companies, and shipbuilders to buy marine hull insurance which will cover risks or damages to the vessel’s body and machinery.
It is necessary to buy it if you have taken it on a loan
When you finance a ship, i.e., take a loan from the bank or any other financial institution, they would require you to insure your ship just like you would have done if you had bought a home or car. In the case of any loss or damage to your boat, the marine hull insurer will come forward to compensate the lender.
It gives security against third-party liability
There is a crucial clause in marine hull insurance, which is ‘the collision liability’ provision. Just as the name itself implies, it safeguards the policyholder against legal liability which may arise when your ship collides with another ship and causes damage to it or its goods. In this case, as the owner of the ship, it will be your responsibility to bear the third-party losses or damages, and it means, shelling out money from your pocket.
Check Now: When to use Marine Hull Insurance?
However, you can easily avoid the situation if you have marine hull insurance. Here, in this case, the insurance company will compensate the third party on your behalf. Even if the third party incurs medical expenses due to an accident, it will be covered under the marine hull insurance.
Without proper insurance, you always run the risk of losing your investment to accidents or other perils. A single storm is enough to sink your boat or a fire in another boat can burn your ship, or you can become the victim of vandalism. Having marine hull insurance can calm the water by covering losses or damages that may arise to hinder the exporting of the consignment.
Further, it becomes essential to own marine hull insurance if –
- You own/operate a shipping company
- You own more than one yacht
- You operate the oil exploration platform
- You are the owner of a water sports company which owns multiple water-going vessels
How Can SecureNow Help You?
All marine hull insurance policies may look the same to you, however, in order to buy the right marine hull insurance policy, it is inevitable to know everything about the policy in detail. You can do it in the traditional way in which you will need to contact multiple marine insurers who will send their surveyors to assess the value of your asset. However, in this way, you would have to bear the expenses of a surveyor, and it is a time-consuming process as well.
Read More: Are There any Exclusions in Marine Insurance Policy?
It is completely possible to avoid this mode if you buy a marine hull insurance policy directly from SecureNow—a leading corporate insurance advisor. All you would require doing is fill out the insurance form online with complete detail about your coverage requirements and comparing the available insurance policy quotes obtained from different insurers. In case you have any queries regarding your insurance, you can contact insurance advisors and experts here at SecureNow.
It is not at the time of purchasing a marine hull insurance policy only, SecureNow is there to assist you at the time of claim settlement as well.
About The Author
Simran
MBA Insurance and Risk
With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.
