Marine insurance covers the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination. Cargo insurance is the sub-branch of marine insurance, though Marine insurance also includes Onshore and Offshore exposed property, (container terminals, ports, oil platforms, pipelines), Hull, Marine Casualty, and Marine Liability. When goods are transported by mail or courier, shipping insurance is used instead.
Marine insurance protects from business losses incurred during water transport operations. While policies vary, there are four standard types: Hull, Cargo, Freight and Marine Liability Insurance.
1) Hull insurance is an insurance policy especially designed for covering ship damage expenses. It covers all types of vessels operating into the oceans, lakes, or rivers like bulk carriers, fishing boats, ships, tankers, cruises, yachts, jetties and wharfs.
2) Cargo Insurance provides coverage against all risks of physical loss or damage to freight during the shipment from any external cause during shipping, whether by land, sea or air. Different types of cargo insurance policies are available for transporting goods by land, sea, or air.
3) Freight Insurance is a insurance for goods during shipment. Freight Insurance can be purchased directly from a shipper or from a third-party insurer also called Cargo insurance.
4) Marine Liability Insurance provides cover for: Loss or damage to any other vessel or property, death, personal injury or illness. Loss or damage to any vessel or craft in your care, custody or control. A number of insurance carriers are available to provide Marine Liability.