“What you need to know about marine insurance
What is marine insurance?
Marine insurance covers any damage or loss related to the vessel, cargo, terminal, transportation or transshipment. Simply put, a marine insurance policy will cover any loss or damage to or around the boat.
Of course, certain criteria define coverage and what it might cover, such as whether your boat or boat is ashore, out of the water, sitting in a garage, or stored in a yacht club. This will determine the security aspects that affect your insurance premium.
Who needs ocean cargo insurance?
You need ocean cargo insurance if:
You ship your goods overseas or to New Zealand and may incur losses due to damaged or lost products.
You may be responsible for damage to others caused by your shipment.
You incur lost profits due to events covered by the policy extension.
What does marine insurance cover?
Marine insurance mainly covers the following:
Physical or structural damage to your vessel due to a collision with another underwater or water vessel.
Damage to property and personal injury to you or others on board.
Towing, assistance and refueling services are available if you find yourself stranded on board.
Marine insurance will also cover your vessel and cargo if you have any problems transporting your cargo. In addition, it will cover liability for damaged or lost goods.
That said, it is your responsibility to ensure that you have adequate marine insurance, especially when dealing with commercial shipments of your customers’ cargo and belongings. This will help you gain the trust of your customers by offering insurance services.
Which industries are covered?
Some of the most common industries that use marine insurance are:
Primary industry – raw materials, raw food, chemicals, etc.
Secondary Industry – Manufacturers and Producers of Manufactured Goods
Processing industry – providing OEM processing services
Retailers – Ship to customers or move goods between sites
How do I find the best marine cargo insurance quote?
As one of the oldest, most complex and specialized areas of insurance, choosing the right marine cargo insurance is crucial. However, there are some easy ways to get it right:
Don’t just rely on the insurance provided by your freight forwarder or carrier. It’s the easiest way to get cover, but it also costs you more
Get advice. The broker will be able to tell you what you need and can contact various insurance companies so they can shop around and find the best price for you
Arrange annual insurance – If you need to arrange insurance for more than two to three single shipments per year, it is often more cost effective to arrange an annual policy
Protect your cargo – nothing drives up premiums like a claim, so if you can show you’re taking action to protect your product – by adding trackers, adding extra protection to your trucks, putting on your cargo Additional packing around and avoiding unsafe shipping routes – both help reduce insurance costs
Choose a higher deductible – this will minimize costs if you are willing to pay more when making a claim through the deductible. This is especially beneficial if you have a good record of low claims”
