Marine insurance covers
loss or damage caused to ships, terminals and any transport vessels or cargo by
which goods are transferred, obtained, or held between ports of origin and
final destinations. The policy is designed to minimize the financial loss
incurred by a policyholder in the event of an accident, natural hazard or other
Hull and machinery
insurance is an important aspect of marine insurance. It’s specifically
designed to cover expenses arising from damage to a ship’s hull (the main body
of the ship) plus any fixtures attached to it. This insurance helps vessel
owners protect themselves financially against physical loss or damage for not
only the hull of the ship but also the vessels fittings, its machinery,
installed equipment and disbursements. The policy can also be extended to
include liability for damage to third parties and third party property.
Marine cargo insurance is
specifically designed to cover goods in transit, by water, air, mail, road and
rail, against losses and damages arising from external causes.
Protection and indemnity
(P&I) insurance covers vessel owners against third party risks. A typical
marine P&I policy covers loss of life, injury and illness of crew members
and other third parties, as well as damage to cargo, wreck removal costs,
collision liability and much more. Given the scope and cost of these exposures,
marine P&I insurance usually includes very high limits of liability.