With thousands of cargo ships traveling the world daily, the risk of lost or damaged cargo is a very real scenario. Business losses could amount to millions of dollars.
Ocean marine insurance protects your products and merchandise on board maritime boats while they are in transit. Other modes of transportation, such as land or air, are also covered by marine insurance coverage.
Ocean Marine Insurance provides you with the funds to help you recover from the losses of missing, sunk, or damaged cargo.
Example: An oil spill or a collision that causes a container van to fall overboard. Ocean Marine Insurance will cover the costs of your lost cargo while in transit.
Example: If your ship is involved in a collision that causes cargo to be damaged or destroyed, the value of your cargo is covered by Ocean Marine Insurance.
Example: Bad weather conditions push the ship into an unwanted direction and it collides with an object, or crashes into land, causing damage to its hull. Ocean Marine Insurance covers the repair costs to the hull and the ship.
Example: In the event the ship sinks and can only be retrieved at great cost to the ship owner, it is considered a total loss as the cost of retrieving the ship would be too high. Ocean Marine Insurance covers the total loss.
Example: Pirate attacks are common on certain routes but increasing in number in places like Vietnam, Southeast Asia and African coasts. Ocean Marine Insurance will cover covers terrorist attacks, stolen cargo and crew hostage ransoms.
Example: If the ship remains grounded due to third party negligence, weather, or lack of training, Ocean Marine Insurance will cover the associated costs of the grounded ship.
The cost of your Ocean Marine Insurance policy from CoverWallet will based on a number of factors, including:
CoverWallet's rates are linked to policies that cover shipments made or imports received from numerous locations and their destinations. Example:
Different rates are set for different commodities, depending on how vulnerable they are to loss.
To find out how much your Ocean Marine Insurance policy from CoverWallet will cost, get a free quote by clicking on the orange button.
Ocean Marine cover will come in handy if you are in the business of:
When it comes to Ocean Marine insurance, the products that are being haulled by the vessel are referred to as cargo. This could include anything from gasoline to toys to paper products to cars. Regardless of the value, or material it is made of, cargo is an all-encompassing word for the items being transported.
If there is an emergency and a ship needs to lighten a load, one thing that can help is to get rid of some of the cargo. In an emergency situation you will not have time to determine whose cargo it is, as you have to move quickly. Once the vessel has reached safety, the cargo will need to be replaced. General average is when everyone who has cargo on the vessel is called upon to contribute to the cargo that was thrown overboard. If you are one of the lucky ones that did not have any damaged or disposed of cargo, you may still have to help provide cargo to replace what was missing.
Marine insurance works just like any other type of insurance policy. It will cover the damages related to a covered loss to a vessel, the cargo, and liability associated with it.
Passenger Ships Passenger ships, such as ferries, are not included in this coverage.
Cargo that is not in transit on a water-bound vessel Cargo that is not in transit on a water-bound vessel unless specified by the policy.
Temporary storage Temporary storage is not covered by this policy (unless agreed to by both parties).
Employee strikes, civil riots or commotions Employee strikes, civil riots and commotions are not included in Ocean Marine insurance.
War Ocean Marine Insurance does not apply if the damage is caused by incidents of war.
Cost of parts for repair Ocean Marine insurance does not cover cost of parts for repair.
Losses from shipping delays Any loss from shipping delays is not included in this coverage.
The limits on your policy would depend on the terms if each policy. However, the factors that are considered when assessing the limits of this type of insurance include:
Your Business Ocean marine insurance protects your business by providing cargo coverage, liability, and coverage for the vessel you are using to transport the goods. Because your business relies on your vessel and the cargo, these are essential coverages to have.
Your Vendors Of course, you have to get your products from somewhere. And sometimes your vendors will require that you provide their first line of defense if you should be at fault in an accident or be negligent. This not only includes your vendors from which you obtain your products, but also those who you may rent or lease equipment from, including your vessel.
Anyone You Enter into a Contract With Often, you will be a party of a contract where the other party requires you to indemnify them. To be able to indemnify another party, or make them financially whole again after a loss, you will need insurance coverage due to severity of claims.
This insurance provides a business with protection should a mistake have been made while delivering professional services. Your General Liability policy will not provide you with this level of protection, so if your company gives advice or provides contracting services you may need this insurance.
The directors and officers of a privately-held company are at risk from customers, competitors, suppliers and government agencies. However, the greatest number of lawsuits against directors and officers come from the employees of a company itself. Directors and Officers Insurance covers your management team, should things go south. You’ll often find D&O packaged with EPLI.
EPLI is a liability insurance that covers wrongful acts, such as wrongful termination, discrimination, sexual harassment and retaliation. This insurance may also protect your business from other employee-related claims, such as deprivation of a career opportunity, defamation, invasion of privacy, failure to promote, and negligent evaluation.
This insurance protects goods in transit on land, as well as the property of others that is on your premises or being transported from your premises. An Inland Marine policy is crucial if your business ships goods of any kind on land.
This insurance covers a business should they need to recall one of their products. Product Recall Insurance will cover the cost of getting a defective product back under the control of the manufacturer or merchandiser that would be held responsible for bodily injury or property damage due to the existence of the product.
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