What Are The Three Types Of Ocean Marine Insurance?

As a member of the marine industry, you most likely understand that being a boat owner or owning marine equipment, in general, can be very costly. Boats are some of the most cost-intensive pieces of machinery in the world, and as the classic saying goes, BOAT! – or bust out another thousand! Even though it can be difficult to be a boat owner, members of the ocean marine industry are well aware of the risks and liabilities owners face.

Types Of Ocean Marine Insurance

From accidents and equipment maintenance to liability coverage, boat owners should understand that there are main types of insurance that they need in order to remain protected. Lacking certain aspects of coverage can cost you thousands in the long run if you are not careful because, as you know, accidents happen all the time when it comes to ocean marine equipment.

To start, let’s take a look at the main types of ocean marine insurance.

Hull Insurance

Hull insurance provides coverage for physical damage to a vessel and any of its operating equipment and machinery. Any vessel, not just ocean-going commercial crafts, can benefit from this aspect of coverage. Tugboats, barges, other miscellaneous floating equipment, and even some fixed properties, including offshore oil rigs and similar installations, are all candidates for hull insurance. Accidents happen in the water all the time and you never know when an accidental collision or damage can occur, so be sure to ask your insurance provider about hull insurance.

Cargo Insurance

Cargo that is present on a vessel in the water during any part of the shipment process can be covered for physical damage by an ocean marine cargo policy. Some policies may also offer protection from theft and other forms of loss besides just physical damage. Policies can be taken out for individual shipments or, in the case of open policies, can cover any and all shipments made during the policy period. Having this form of insurance alongside hull insurance will ensure that your vessel and all forms of cargo are covered in the case of an accident.

Liability Insurance

Marine liability is most commonly known as protection and indemnity, or P&I, coverage. It covers a wide variety of third-party liabilities that marine equipment owners are exposed to during a vessel’s operation. The main aspects of P&I coverage include:

• Injury, illness, or loss of life caused by a vessel’s operation;
• Medical expenses relating to any injury, illness, or loss of life;
• Damage to other vessels or property caused by collision;
• Damage to other vessels or property caused by incidents other than collision;
• Wreck cleanup and removal;
• Damage to cargo in certain situations; and
• Expenses resulting from quarantine.

Is Ocean Marine Insurance Required?

While ocean marine insurance is highly recommended and should be considered by every operator of marine equipment, not every state requires you to have it. However, if you have received a loan using your boat as collateral, the bank will require boat insurance coverage listing them as a loss payee to cover their interest in your boat.

In this case, if you do not provide insurance for your financed vessel, you will end up with an extremely expensive plan. A marine insurance policy purchased on your own through a reputable broker will cost significantly less while providing the coverage you require.

Why Ocean Marine Insurance Is Important

Ocean marine insurance is extremely important if you are a member of the industry or if you simply just own some marine equipment. Accidents in the water can be extremely costly without coverage, especially if you are a newcomer. Accidentally running into other boats, experiencing storm damage, or just simple accidents can cost thousands of dollars even in the most simple cases. Getting covered is essential due to the nature of this rough industry!

The main benefits include:

• Save money
• Protect your investments
• Avoid liability concerns

Work With JMG

Overall, be sure to contact your local ocean marine insurance experts in order to learn more about the insurance needs of your ocean marine machinery and equipment. JMG Insurance has been servicing the insurance needs of the Fairfield County area since 1916. Their team strives to make the insurance process as simple as possible for our clients while matching them with the right plans for their needs. Contact them today.