What Is Not Covered By Marine Insurance?

Marine insurance is a very helpful form of insurance that can cover those involved in accidents or those that were a victim of unforeseen circumstances. These insurance policies are very comprehensive, however, they are certain aspects of your boat or marine business that may not be covered. In these cases, you may need to seek additional coverage options depending on your unique insurance needs.

What Is Not Covered By Marine Insurance?

While marine insurance policies are very comprehensive, they do contain certain exclusions. These exclusions can vary based on the insurance provider, but it is important to make sure you are covered from all of the risks that your property or your business face. These exclusions generally include loss caused by wear and tear, gradual deterioration, weathering, insects, mold, animals, and also effects that marine life may cause. Some plans also do not include damages such as scratches, marring, blistering damage, or manufacturer’s defects.

Understanding these exceptions can help you understand which parts of coverage you may need to seek as additions or from additional plans. When you work with an insurance specialist, you can be sure that your plan will be personally designed to meet all the needs of your business or property.

Most policies also exclude items that have a defect that causes damage to your insured property; however, resulting damage may be covered. If your water pump is defective, a policy may not pay for the water pump but could help pay off the resulting damage to the engine.

Additionally, some boat insurance policies have machinery damage exclusions while others do not. If you forget to put oil in your engine and your policy does have a machinery damage exclusion, then the policy with the machinery damage exclusion would most likely not cover the loss.

To summarize, the main things that marine insurance will most often not cover include:

• Damages or losses due to negligence or misconduct;
• Damages or loss as a result of improper packing;
• Loss or damage due to wire, strike, riot, civil commotion; and
• Removal of the wreck or accident site cleanup.

What Is Covered By Marine Insurance?

While marine insurance does have some important exceptions, it covers many of the most important risks that boat owners and operators face. At its core, it covers cargo losses or damage caused to ships, terminals, and any transport in which goods are transferred or acquired between different points.

Factors that include weather hazards, encounters with pirates, property loss, and cross-border conflicts are very common in the water transportation industry. The damages associated with these situations can cause a significant financial hardship for ship owners, which makes a personalized marine insurance plan of vital importance.

The three main protections found in marine insurance policies include:

Hull Insurance

Hull insurance offers protection for physical damages to the boat or vessel along with its operating equipment and inner machinery. This policy is applicable for all water vessels and is limited to commercial-based ocean crafts. Barges, tugboats, oil rigs located offshore, floating equipment, and other similar installations stand to get the biggest benefit from this type of insurance.

Cargo Insurance

Provides coverage for physical damage to cargo that is transported as part of the shipment process. Depending on your unique needs, some policies may also offer theft protection or coverage for other forms of losses besides physical damage.

Marine Liability Insurance

Also called P&I (protection and indemnity), this coverage offers protection for third-party liabilities that owners and corporations are exposed to during water operations. It includes coverage for injuries, illnesses, or even loss of life caused by vessel operation. Medical expenditures, damage to other vessels and cargo, collision incidents, and related expenses as a result of quarantine may also be covered.

The Importance Of Personally-Tailored Marine Insurance Plans

As we have learned, there are portions of different insurance plans that may or may not be included in a basic plan. This makes it important to work with professionals who will look at your case individually and match you with a plan that protects you from all the unique risks that your operation faces. Whether you need hull insurance or simply need to cover your oil rig, be sure to work with a specialist who will consider your unique needs.

Work With JMG Today

The JMG Insurance Corp has been servicing the insurance needs of the Fairfield County area since 1916. Their agency was built on the principles of providing superior customer service and quality insurance solutions for their clients, and they work hard to uphold these values every day.