5 Types of Marine Insurance Policies

  • Port Policy
  • Fleet Policy
  • Freight Insurance
  • Liability Insurance
  • Floating Policy

The many different types of marine insurance policies can be a source of confusion for owners seeking adequate protection of their assets. Marine insurance coverage can be complicated and highly specific. Below are five types of policies many individuals and corporations choose to invest in.

Port Policy

A port policy covers incidents that occur while a ship is in a specific port, usually for a specific length of time. This type of insurance is helpful when a ship will be anchored in port for a prolonged period of time. It can cover damages from theft, vandalism, collisions, natural disasters or other similar occurrences, making it a smart choice for hobbyists who may leave their boat anchored in port for any length of time. It can also be a good investment for commercial enterprises placing a vessel in port for a while. Coverage lapses the moment the vessel leaves the port.

Fleet Policy

Much of marine insurance covers only one ship, but many corporations, or even individual owners, can own a fleet of ships. A fleet policy is designed to cover a number of different ships rather than just one vessel. This usually makes it a more cost-effective way of having insurance for commercial enterprises. A fleet policy can include general liability coverage as well as coverage for a specific voyage. As the Huffington Post rightly points out, it is critical for everyone who carries insurance protection to not have the wrong insurance or not enough insurance to cover their needs. This is why it is best to consult insurance professionals before investing in a fleet policy.

Freight Insurance

Freight insurance can be purchased to cover the value of freight transported on watercraft. It protects the owner or company from financial loss in the event freight is lost or damaged due to the ship being involved in an accident. It can cover loss ranging from just a few cargo containers getting damaged during a collision in port to a total loss if a ship capsizes and sinks. It also covers the carrier if the goods are not delivered on time. Freight can be lost, damaged or not delivered on time for any number of reasons, which can make freight insurance a worthwhile investment for carriers. It almost never applies to owners of personal or pleasure boats.

Liability Insurance

Liability insurance can cover a number of scenarios and is crucial for any owner of a boat, whether for commercial or personal purposes, to possess. It typically protects the owner or carrier from being liable in the case of an injury or loss. For example, liability insurance will protect the company if a crew member is injured during the voyage. It also protects private owners if a guest is hurt while on their boat. Liability insurance can also cover the costs owed someone else if a carrier’s boat collides with theirs and causes damage.

Floating Policy

A floating policy allows carriers to take out a policy to cover several shipments. This is most useful for a business that delivers freight regularly. It allows owners to skip the time-consuming process of buying insurance for every trip and instead cover themselves, their cargo, their ships and their employees with a single policy. A floating policy is also known as a “declaration policy” or “open policy” because the names of the ships and the specifics of the shipments can be declared later. A floating policy cannot be issued for property that is immovable.

Related Resource: 10 Best Cheap Boat and Marine Insurance Companies

Just about any strange complication or problem can occur at sea. Maritime and international law can be complicated, necessitating insurance policies that will protect personal and commercial vessels alike. There are marine insurance policies in existence that are sure to meet the needs of any private boat owner or commercial enterprise.