Many people look to get a boat insurance policy to cover their water vessel in the event of an accident. These same people may well be inadequately covered in the event of a claim as they should have sought a marine insurance policy. Marine insurance typically covers all the cargo within the boat not covered by standard boat insurance. Most marine insurance policies provide extensive coverage of cargo to both commercial and one-off carriers of cargo that specifically is being transported over water.
Marine insurance is actually the oldest form of insurance in the world since the transportation of cargo using water vessels for trade has been operational for hundreds of years. Nowadays, pirates are less common but the world’s waterways are still hazardous.
Who is a potential candidate for marine insurance?
Marine insurance is an option for anyone transporting possessions by boat or other watercraft. Due to the nature of basic boat insurance, only a small percentage of cargo is covered in the event of an accident or damage. Marine insurance provides peace of mind to the carrier that they will not be liable for any accidents in transit.
The other group of people who need marine insurance are people who are sharing a ship container to transport their goods across water. They are individually liable for their goods, and the carrier is not liable.
What does a marine insurance policy cover?
Marine insurance typically covers the accidental damage or theft of goods transported by sea. Coverage also extends to warehouses where cargo is kept in the interim period, loading and unloading of cargo and coverage can also extend door to door depending on the provider.
Coverage basically includes damage to property caused by fire, theft, sinking, capsizing and grounding or any event that causes non-delivery of cargo. Damage caused in other circumstances may need extra coverage.