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Things To Know About Marine Insurance

Many people are not aware that boats and ships were invented long before trains and planes. Ship and boat transport is mainly used to carry non-perishable goods and people. Historically, international trade has relied on sea transport but there are lots of risks in the sea such as bad weather, pirates attacks, and collisions among others and that is where marine insurance comes in. Marine insurance covers damage or loss of cargo, terminals, and ships that occur between the point of origin and the final destination. Marine insurance is compulsory for all yacht and shipowners who are involved in sea commercial transport services. A marine insurance contract refers to the agreement between the insurer and the insured for the former to cover against losses that are incurred in the sea.

There are four main types of marine insurance namely cargo insurance, hull insurance, freight insurance, and liability insurance. Click to learn more about John B. Wright. Cargo marine insurance covers goods or cargo which are contained in the vessel including the personal belongings of passengers and crew. The cargo insurance policy also includes the ship’s voyages. Marine cargo insurance not only covers ship accident but also delay in unloading or voyage.

The hull marine insurance covers the vessel's body and its equipment which includes fittings, machinery, furniture, tools, and fuel among others. The insurance coverage is usually taken by the owner of the ship to protect them from losses they stand to incur if they lose the ship in the sea. Marine freight insurance policy offer protection to the merchant vessel’s corporations. The insurance provides cover against loss of freight and the owner of the goods in transit in most cases is obligated to pay the freight under the terms and conditions when the goods have been delivered at the port of destination. Click this link to get more info. If the vessel is lost at sea or the cargo is stolen or damaged, the shipping firm can lose freight, and freight insurance policy offers protection from such risks.

Liability insurance is taken by the insurer to indemnify themselves against losses that the insured can incur due to third-party liability. This can be as a result of a collision while at sea or other similar risks. Marine insurance is quite beneficial in that it provides all-round coverage against various risks faced at sea which gives the vessel and cargo owners some peace of mind as their property is in transit. Get your marine insurance policy from a reputable insurance provider. Learn more from https://en.wikipedia.org/wiki/Insurance.

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