There are many different challenges facing those operating ships, from port operations to delivering cargo to safe transit without incidents. Marine buyers, vessel owners and shipping companies invest in insurance for protection and peace of mind when difficulties arise. There are numerous different types of marine insurance available, and policies cover a wide range of possibilities. Some of these options include hull and machinery insurance, cargo insurance and legal liability.
Hull and Machinery
Companies with strong operating records and regular equipment maintenance still need to insure their hull and machinery in the event of a collision with another vessel or an underwater protrusion. This type of protection covers nearly anything in the maritime industry that floats, including oil tankers, barges, towboats and supply vessels. Policy coverage may be granted or limited based on vessel size, age, construction, condition, value, purpose and power. Other considerations include the crew's experience and where the vessel will be operating.
Cargo
Picking up and delivering cargo for shipping clients on time and in the same condition as it left its starting point is an important part of marine operations. Cargo is subject to a variety of mishaps and incidents during transport, such as damage, loss and spoilage. At times, cargo may be delayed in customs or damaged due to rough seas or miscues during loading and offloading operations. Companies involved in shipping or towing need sufficient marine cargo insurance for protection in case any of these problems arise.
Legal Liability
While handling cargo, passengers or port operations for clients, shipping companies, vessel owners and marine buyers must assume some responsibility for what happens on their watch. There are several different types of marine liability insurance, covering general liability, pollution and terminal operations. Other forms of liability insurance cover stevedores, tankermen, wharfingers, ship repair and charterers. Each offers protection for specific types of hazards and responsibilities, from cargo handling to equipment failure to pollution. Items and incidents not covered under these umbrellas may be underwritten through excess liability coverage, depending on the type and probability of risks.
When choosing marine insurance, it is important for applicants to carefully consider the different types of policies available. While most companies hope that nothing will ever happen to their vessels, crew or cargo, preparing for the worst often minimizes losses should the unthinkable happen. It is important for maritime-related companies to not only carry adequate protection, but to read and understand the policies and what they cover before something unfortunate happens.
Hull and Machinery
Companies with strong operating records and regular equipment maintenance still need to insure their hull and machinery in the event of a collision with another vessel or an underwater protrusion. This type of protection covers nearly anything in the maritime industry that floats, including oil tankers, barges, towboats and supply vessels. Policy coverage may be granted or limited based on vessel size, age, construction, condition, value, purpose and power. Other considerations include the crew's experience and where the vessel will be operating.
Cargo
Picking up and delivering cargo for shipping clients on time and in the same condition as it left its starting point is an important part of marine operations. Cargo is subject to a variety of mishaps and incidents during transport, such as damage, loss and spoilage. At times, cargo may be delayed in customs or damaged due to rough seas or miscues during loading and offloading operations. Companies involved in shipping or towing need sufficient marine cargo insurance for protection in case any of these problems arise.
Legal Liability
While handling cargo, passengers or port operations for clients, shipping companies, vessel owners and marine buyers must assume some responsibility for what happens on their watch. There are several different types of marine liability insurance, covering general liability, pollution and terminal operations. Other forms of liability insurance cover stevedores, tankermen, wharfingers, ship repair and charterers. Each offers protection for specific types of hazards and responsibilities, from cargo handling to equipment failure to pollution. Items and incidents not covered under these umbrellas may be underwritten through excess liability coverage, depending on the type and probability of risks.
When choosing marine insurance, it is important for applicants to carefully consider the different types of policies available. While most companies hope that nothing will ever happen to their vessels, crew or cargo, preparing for the worst often minimizes losses should the unthinkable happen. It is important for maritime-related companies to not only carry adequate protection, but to read and understand the policies and what they cover before something unfortunate happens.
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