Category: Marine

Benefits of Marine Insurance

If you are planning to use your vessel for transportation or commercial purposes, then it is mandatory for you as the owner of your ship or yacht to procure marine insurance. The purpose of a commercial or transportation vessel could be to carry cargo, workers or passengers across the waters of your country’s geographical boundaries. Not only is it vital to procure a good marine insurance for a vessel, it also makes sense to procure the most apt insurance coverage, which is capable of providing coverage to you for different types of risks.

Risks for a vessel in water

When your boat is out in the sea, the risks can be severe and the owners of the boats or ships can undergo a lot of liabilities, which can financially cripple them. Moreover, the seamen and the passengers can face high risks of death or injuries due to the vessel getting damaged or adverse weather conditions. The sea may be temperamental, and even tough to foresee. Thus, it is highly imperative for you as a boat owner to procure an appropriate marine insurance.

When you procure a good insurance coverage, your cargo ship can enjoy limited liability as far as the loss or damage of costly goods that are carried by it. A ship that transports goods typically travels long distances and so there is a high degree of risk for damage or loss of goods it is carrying. When you procure a good marine insurance policy, it can ensure the protection of vessel operatives and limited liability if the cargo gets damaged while in transit.

Since the marine industry business is regarded as a complex industry, it is highly recommended that as a vessel owner, you should go in for professional assistance from a professional consultant or an experienced yacht broker, which specializes in helping owners procure the best marine insurance coverage possible.

A comprehensive marine insurance policy is important for protecting the passengers, crew, onboard equipment, cargo, and a vessel from harm. Such insurance will also make sure that required compensations exist for the grieved parties where cargo, crew or passengers get affected while in transit.

The key benefit of obtaining an appropriate and comprehensive marine insurance policy is to make sure there are limited liabilities and complete protection against the following things:

  • Legal and labor costs
  • Risks of pollution
  • Hijack or theft of vessel
  • Robbery of onboard goods
  • Accidents while the vessel is in convoy like overturning or sinking
  • Mistakes committed during transportation like inappropriate handling
  • Complications caused due to differences in temperature
  • Collision
  • Compensation for death, injury, and illness of passengers traveling in a vessel

Contrary to the other types of transport vehicles, transport in the marine sector is vulnerable to a greater number of risks, which may not be entirely controllable by a vessel operator. So, it is necessary that all yacht and ship owners have proper marine insurance in place.