Different Types of Marine Insurance Policies
Cargo insurance
Cargo insurance is a risk management tool that generally protects shipments from loss, damage, or theft while in transit. This coverage is beyond basic claims insurance that may be provided, and it will reimburse for the designated value of the goods if a covered event occurs while the freight is in transit.
Hull insurance
Hull refers to the body of a vessel. This insurance covers boats, just like comprehensive automobile insurance covers vehicles. It covers all kinds of vessels going into the ocean, like ships, pontoons, yachts, cruises tankers, bulk carriers, dredgers, trawlers, fishing boats and other pleasure boats, jetties and wharfs.
Freight insurance
A Freight insurance policy offers additional protection to your freight against potential losses caused to the shipment during the transit. There are different types of freight insurance policies including marine insurance, shipping insurance, cargo insurance, transport insurance, and transit insurance. All these policies cover merchandise and goods against loss or damage during transit from one location to another.
Liability insurance
Liability insurance is a type of marine insurance where compensation is sought to be provided to any liability occurring on account of a ship colliding or crashing and on account of any other induced attacks.
There are also various types of policies under marine insurance which include the following –
Time policy
This policy provides coverage up to a specified time, for instance, one year.
Voyage policy
This policy provides coverage for a specific voyage. As soon as the voyage or trip comes to an end, the policy expires
Mixed policy
This policy combines time policy and voyage policy and covers voyages taken between specific destinations during a specific time period.
Port risk policy
This policy covers the loss suffered by the ship when anchored at a port
Valued policy
Under this policy, transportation for the value of the cargo mentioned beforehand specifies the coverage level of the plan. The value mentioned in the policy pays the claim in case of loss of cargo.
Unvalued policy
When the value of the cargo is not determined beforehand, called an unvalued policy. Under this policy, the loss suffered would estimate when the loss happens.
Floating policy
A floating marine insurance policy is for businesses that transport goods frequently. Under this policy, the policyholder buys the policy for a lump-sum value. Nothing else is specified. While transporting the goods, make a declaration for the value of goods, deducted from the lump sum amount selected under the policy. The policy covers multiple voyages up to the lump sum limit.
Block policy
Block policy in marine insurance covers the transportation of goods both by land as well as sea
Composite policy
Multiple underwriters underwrite composite policies in marine insurance and each underwriter has a fixed liability
Fleet policy
The vessel owner takes a fleet policy in marine insurance to cover the fleet of vessels he owns.
These are the basic types of marine policies. Businesses can select the most suitable policy for their requirements to get the best coverage at the lowest rate of premiums.
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.
