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The marine industry is the oldest means of international transport for people and cargo. It has been around since the 1600s and is still popular as a means of transport for large volumes of cargo, as well as for affordable international travel. Along with their many conveniences, marine transport and travel come with many risks. Because of this, obtaining comprehensive marine insurance coverage is of prime importance. Let us take a look at the many benefits of marine insurance, and how you can get the best coverage for your business.
There are several reasons why it’s a good idea to obtain marine business insurance if you are involved in any type of dealing with the marine industry. Whether you are a shipping business owner or whether you simply transport your cargo via ocean channels, marine insurance is applicable to you.
First, understand what marine insurance is. Marine insurance focuses on protecting goods being shipped across the sea. Covered perils typically relate to damage or loss from natural disasters, theft, hijacking, and improper handling. But it also includes damage to the vessel itself, its machinery, and other equipment.
Dangers to cargo at sea are often extensive and unrecoverable. The nature of the sea is volatile, and any natural or man-made disaster usually results in a complete loss of cargo. Let's take a look at some of the types of coverage that are available under commercial marine insurance.
There are different types of marine insurance you can consider according to the needs of your business. The three main types are cargo, ship or hull insurance, and Liability. These policies offer the basic coverage needed to safely transport goods across the sea.
This insurance covers only the physical loss or damage to cargo during transportation. Cargo insurance is designed to protect the sender of the goods. Namely, the manufacturers, wholesalers, and retailers.
Hull insurance provides coverage for damage to a ship's body and machinery. It includes the vessel itself, permanently attached machinery, and other equipment. This type of marine insurance protects the insured vessel against physical damage while the vessel is in transit over water.
Marine Liability focuses on liability risks for clients with exposures in the direct or indirect marine operations. In the modern world marine liabilities insurance is crucial for certain organizations as it offers protection against liability exposures and litigation.
Owners of ships and companies paying for shipping by sea can avoid facing financial losses from shipping related disasters through obtaining carefully customised marine insurance policies. The nature of your policy should be adjusted according to the nature of your dealings with the consignment. For example, the shipowners' policy will differ from the policy of the business owner. Here are some of the key advantages of marine insurance.
When a ship or boat is damaged as the result of an accident, marine insurance pays the high costs of repair.
If you own a vessel that transports goods for other companies, you can be held liable for damages that occur during shipping. These damages can even be the result of faulty actions taken by the crew. A policy with liability protection can help cover legal costs if your company is sued.
Damage caused by an accident at sea is considered the fault of the ship owner. Marine insurance coverage can help pay for losses, including legal fees and settlements. Without proper marine risk management, the owner could be devastated financially by any incident.
There is always the likelihood of inventory and cargo being subjected to theft or vandalism. Missing items can still be untraceable, even with the introduction of RFID chips embedded in products for tr
This is probably the greatest short-term and long-term benefit of having insurance in any industry. Knowing that all your shipped items will be financially protected, gives you an irreplaceable feeling of contentment and security.
With Continental Insurance, you can talk to experts to obtain the most suitable insurance plan for your needs. The agents will assist you to assess and understand your specific coverage needs, and compare different products. Visit Continental Insurance's website or contact their customer service agents on +94 11 2 800 200 for more information and personalised quotes.