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Marine insurance

What is Marine Insurance?

Marine insurance offers protection for shipments and vessels involved in maritime trade. It covers various risks, including damage to cargo caused by accidents, theft, natural disasters, and even piracy. Additionally, marine insurance can provide coverage for liabilities arising from collisions, salvage operations, and pollution incidents during transportation by sea.

What Does Marine Insurance Cover?

Marine insurance typically covers the following:

  1. Cargo Loss or Damage: Compensation for loss or damage to cargo during transit by sea, including loading, transportation, and unloading. The responsibility for cargo insurance can be the responsibility of the buyer or seller, and is determined by the INCOTERMS used to govern the freight contract.
  2. Vessel Damage: Protection for vessels against risks such as collisions, sinking, grounding, and damage from weather-related events. This insurance is typically purchased by the carrier.
  3. Liabilities: Coverage for liabilities arising from maritime activities, including collisions with other vessels, pollution incidents, and injuries to crew members or third parties. This insurance is typically purchased by the carrier.

Marine Insurance vs. Inland Marine Insurance

While marine insurance primarily covers goods and vessels during transportation by sea, inland marine insurance extends coverage to goods in transit within a country's borders, including transportation by land or air. Inland marine insurance is suitable for goods being transported domestically or over land, such as via trucks, trains, or pipelines, providing protection against similar risks as marine insurance, but for inland transportation routes.