What are the different features of a Marine Insurance Policy?
Insurance policies are well-defined contracts and marine insurance has strict policy requirements. Insurer requirements should always be followed because minor discrepancies or any violations can lead to rejected claims. Policy providers follow narrow guidelines when reimbursing claims, and a simple deviation to the route might result in a loss of coverage for an expensive claim. With this in mind, it’s important to understand the features and requirements of your policy to ensure you have coverage.
Open Policy – an inland marine insurance policy provides coverage for inland movement of a consignment for a specific duration of time, usually up to one year. This policy is applicable for shipping companies with numerous transactions per year as it offers continuous coverage during the active policy period. Inland marine insurance, in the context of extended coverage for marine insurance, covers goods shipped by land, such as after the goods have arrived ashore and are being shipped to a storage facility.
Comprehensive Protection – provides more expansive coverage against different types of loss or damage, protecting the value of your merchandise against total loss of goods, partial loss of goods, and other related expenses while your cargo is still in transit.
Customization – for businesses with varying needs, obtaining customized marine insurance is generally recommended. You can choose your policy coverage limits as well as policy options that would be useful to your business and your specific needs.
Mark up Value – known as markup in the marine industry, this type of policy allows a portion of your profit to be included in the insured value.
A marine insurance policy provides comprehensive protection, though keep in mind that there are coverage exclusions that need to be considered. Insurance companies will not cover your claim if:
- It is caused by willful negligence
- It is caused by improper packaging
- There is contamination as a result of radioactive rays
- It is caused by strike, riot, or civil commotion
- Other exclusions may apply, another reason to review your coverage closely