When you are running a ship, it’s a good idea that you are aware of the risks faced by people in the marine business. An accident, for instance, can damage a ship, which can cause a lot of money to fix. This is where having coverage, such as comprehensive hull and machinery insurance is essential. With all the threats out there like natural disasters and human error, having some form of insurance is necessary to give you that peace of mind you need.
Getting marine insurance is the smart move when you’re shipping or transporting goods out to sea.
If you are getting a policy, you’ll need to take note of certain features. First, the policy needs to be open. It should be able to cover a specified duration of time. Next, it has to be comprehensive. The insurance needs to cover various losses without any further issues. Third, a good marine insurance policy allows for customisation depending on your needs. Finally, if you are in the shipping sector, you’ll want a policy that covers a part of the profits. Also called a mark-up, it allows you to get some of your potential profits out of a loss.
When it comes to policy features, take note that some insurance policies have holes in coverage. Here is an example: If the damage to your ship or goods is due to your negligence, the insurance provider may choose to deny your claim. Other possible circumstances where you may not be able to get a payout are riots or strikes. It is a good idea, therefore, to read the policy features offered by the insurance provider carefully and see whether what they’re providing works for you.
A Look at Some Types of Marine Insurance
Many types of marine insurance exist. Depending on your goals, you may need to mix and match them to get the best protection possible.
The first is hull and machinery insurance. This type of insurance covers the physical parts of your cargo ship. The hull refers to the general parts of the ship, while machinery involves the engine and other machine components of the ship. You can extend this insurance to cover delays caused by strikes.
Second is Protection & Indemnity (P&I) insurance. This protects you from claims related to your crew and cargo. If a member of the crew, for instance, sustains an injury on the ship, you’ll be covered when you have this insurance.
Third, marine cargo insurance is a necessity when you are transporting cargo at sea. This protects you from losses stemming from cargo damage or loss. This can range from the ship sinking to an accident during transport.
Protect Your Investment
No one likes the idea of their ship sustaining some form of damage. Apart from financial loss, it can affect the revenue stream of the business. You, therefore, will want to protect the money you put into the company by having insurance ready in case something happens. Get the right policy to ensure maximum protection.