Marine insurance is a specialized form of coverage designed to protect against risks and losses associated with the transportation of goods, vessels, and cargo across oceans and waterways. Whether you have a single vehicle or a fleet of trucks crisscrossing the country, commercial auto insurance scales with your business. Here’s an overview of key aspects related to marine insurance:

Purpose and Scope:

• Purpose: Marine insurance provides financial protection against the perils of sea transportation, covering ships, cargo, and related liabilities.
• Scope: Extends beyond ocean voyages to cover inland waterways, ports, and even transport by air or land in certain cases.

Types of Marine Insurance:

• Hull Insurance: Covers physical damage or loss to the ship or vessel.
• Cargo Insurance: Protects the goods being transported against damage or loss during the voyage.
• Freight Insurance: Covers the loss of freight revenue in the event of damage or loss to the cargo.
• Liability Insurance: Shields against legal liabilities arising from injuries, damages to other vessels, or port facilities.

Perils Covered:

• General Average: When a voluntary sacrifice is made to save a ship or cargo from a common peril, the loss is shared among all parties with a financial interest.
• Particular Average: Covers partial losses to the ship or cargo resulting directly from a peril.

Institute Cargo Clauses (ICC):

• Standardized clauses that define the extent of coverage in marine cargo insurance policies.

Valuation Methods:

• Agreed Value: The insured value is agreed upon between the insurer and the insured in advance.
• Actual Cash Value: Takes depreciation into account when determining the value of the insured property.

Voyage and Time Policies:

• Voyage Policy: Provides coverage for a specific journey or voyage.
• Time Policy: Offers coverage for a specified period, regardless of the number of voyages undertaken.

Average Clauses:

• Particular Average: Losses are borne by the owner of the damaged or lost property.
• General Average: Losses are shared proportionately among all parties with a financial interest.

War and Strikes Risks:

• Marine insurance policies may exclude or include coverage for risks related to war, strikes, and other geopolitical events.

Salvage and Sue and Labor Clauses:

Salvage Clause: Covers the costs of efforts to save the ship or cargo in the event of an accident.
Sue and Labor Clause: Covers expenses incurred to minimize or prevent a loss.

Marine Liability Insurance:

• Includes coverage for third-party liabilities, such as collisions, pollution, and damage to port facilities.