Getting marine insurance is an essential thing that a ship owner has to consider. When there is no protection, boat owners could incur risks to their vessels and also financial losses if the boat is used as a cargo-carrier.
That is why to ensure that your freight is adequately protected, you need to have cargo insurance or marine cargo insurance. You can find more here on the benefits of business coverage.
These policies are based on the marine insurance act, 1906. Though it is a comprehensive coverage of possible losses, it doesn’t cover any incurred damages or losses while your ship is sailing through the waters. This proved difficult for many cargo carriers, and that’s when the concept of water cargo indemnification came into existence. It aims solely to provide indemnification should any damages arise in the course of water transportation.
Marine Cargo Insurance
These policies protect and cover the consignment when the ship is sailing across the ocean. Oil tankers and cargo-carrying vessels mostly need this type of coverage. It means marine cargo coverage protects the vessel from losses incurred during the boat and cargo movement.
There are lots of companies around the world that offer both the marine and cargo marine coverages. Depending on the needs of the clients, the best-suited coverage policy would be recommended by the insurance company and then selected by the client.
However, there are certain features that a client needs to look out for when going for a coverage plan. If these features are overlooked, the clients won’t get fully compensated after paying the adequate premium amount.
If the goods on the ship aren’t correctly packaged or the products aren’t original, the freight coverage policy would not apply. Also, if the consignment was lost and it was due to the negligence of the workers on the vessel, or if the ship workers aren’t honest and competent, then the policy will not be applicable as well.
Even in some cases, the weather conditions can determine whether the marine insurance contract would be relevant.
These coverages can also be influenced due to the size of the vessel. Also, an important aspect to consider is whether to get a contract that will be applied per voyages collected by the ship. Or for a pre-arranged schedule agreed by the owner.
Some of the organizations that offer indemnification services include the Insurance Network of America and the Saucon Mutual Insurance company. You can learn more about finding the best marine coverage from this link: https://fundamentalinsurancebrokers.com.au/marine-insurance
How much coverage do you need?
I suggest that you opt for a contract that covers the worth of your vessel and the freight value, i.e., all packing materials + 10%. This is what most ship owners with goods do. You will have to tender paperwork to support your claim.
There are various plans offered to clients by indemnification companies to provide the them with different options while choosing a plan. The availability of different options gives a client a wide range to choose from, thereby enabling the client to get the best deal possible for his ship and shipments. The different types of marine coverage policies are specified below:
- Voyage policy: a voyage plan is that specific kind of contract valid for a particular voyage.
- Time policy; this is a particular plan that is valid for scheduled time frame-generally correct for one year.
- Mixed policy; this particular coverage provides the client with the benefits of both the voyage and time policy.
- Unvalued or open policy; in this particular plan, the shipments’ worth is not added in the procedure ahead of time. This means that you get compensated only after the loss of the deliveries is examined and valued.
- Valued policy; this is the opposite of the valued contract. The value of consignments is examined and mentioned in the agreement beforehand. Thereby stating the amount of the compensation in case losses were incurred.
- Port risk policy; this particular coverage ensures that your ship is safe while stationed in the port.
- Wager policy; in this kind of contract, there is no mentioning of a fixed term of compensation. If the insurance company assesses the damages and find that it is worth the claim, then payment is provided.
- Floating policy; a plan where only the worth of the claim is specified, and all other details are neglected till the time the vessel set Sail is known as a floating policy. This is the most suitable and viable marine coverage policy for clients who take regular cargo trips through waters.
- Single vessel policy; this plan is most suited for small ship owners; it covers the risk of one vessel.
- Block policy; this particular plan protects your shipments against damages from all the modes of transport in which your shipments are carried. This means that your cargo is covered from the risks of sea, road, rail, and air transport.
- Fleet policy; in this particular contract, if a boat owner owns several vessels, they would all be insured under the same deal.
Where to get a Marine Cargo Insurance?
You can get it from a shipping agent, carrier, or you can do your search and find one online. Make sure to insure your vessel and freight before it starts transport to be covered. Once an incident has occurred, you won’t be able to guarantee. Also, if you already work with an insurance company, you can ask them if they offer any kind of water cargo indemnification.