Marine Insurance is a policy that covers the damages for ship and merchandise transported along with the ship.
If you compare it, marine insurance is very similar to car insurance. The different are various, such as environment of the transporting routes or export/import merchandise. Marine Insurance is very important for logistic business, with more complication and trickier environment comparing with road traffic, also involving international relationship.
Normally, marine insurance divided into 2 section:
Ship coverage policy
Is to protect and covers the expense from the marine vessels damage, including yachts and racing ships. The policy covers expense down below:
- War and terrorism
- Losses from renting
- Suspension from transportation
- Suspension from piers , whether it’s assets, machinery or the business as a whole
- Risk from the ship builder or shipyard.
- Insurance for yachts
- Insurance for racing ships
Merchandise coverage policy
Is to protect and covers the expense from the transporting merchandise, or risk from transporting the merchandises. Insurers would compensates the goods in case of lost of goods or damages in various situation. The policy covers expense down below:
- Government decline
- Risks from transporting globally
- Suspension from exchange
- Political affairs
- Deteriorate merchandise
- Contaminated in foods & beverages merchandise
- Natural disaster
However, marine insurance from each insurer might have a different policies such as international and domestic transportation, That’s why entrepreneurs should look through each insurer and evaluate your choices before apply any contract.