Commercial Marine Insurance

Ships offer a cost-effective way to move large quantities of goods long distances, but overseas shipping comes with certain risks. Commercial marine insurance helps companies that send goods and people on sea-bound vessels protect themselves against some of the risks that come with this mode of transportation.

Marine industry insurance is a highly specialized form of commercial insurance. Because it’s so specialized, businesses should seek advice from an agent or broker who has experience with this form of coverage. An experienced marine insurance broker will know what risks shipping overseas presents and how a policy might protect against some of those risks.

Most businesses that transport goods or people via ship should have a policy, and many businesses that outsource sea transportation can also benefit from the protections that a policy offers.

A few examples of specific businesses that may want a commercial marine policy include commercial vessel owners/operators including, but not limited to: Charter boats, commercial fishing vessels, dive stores, jetboats, cargo vessels, tankers, container vessels, roro vessels, passenger cruise ships, ferries, tugs, barges, importers and exporters, shipbuilder and repair facilities, mortgagees and lenders, and cable laying (underwater) companies. Businesses that are unsure whether they should purchase this coverage can speak with a knowledgeable insurance agent or broker about their particular situation.

Marine cargo insurance protects goods and property from physical loss, damage, and theft while in transit on the ocean or in storage. If your business entails buying or selling goods overseas, then having a quality marine cargo insurance policy may make sense.

Typical business owners that need marine cargo insurance include importers and exporters, manufacturers, wholesalers and retailers, freight forwarders, logistics providers, and commodities traders. Speak with a commercial marine insurance provider to see if this type of business marine insurance is right for you.

Lifeline Emergency Expense Reimbursement coverage defrays the cost of emergency accommodation and towing expenses. Our exclusive LifeLine plan covers emergency expenses most marine policies do not cover, such as: accommodation, airline tickets, towing and salvage charges, emergency delivery of fuel, a battery and/or jump-start, and repatriation for a medical emergency.

Our marine insurance specialists can explain this exclusive coverage in more detail.

Most personal marine insurance policies DO NOT cover preventative haul-out expenses, but they are covered under our exclusive YachtHaul plan. YachtHaul is coverage that helps defray the cost of emergency haul-outs. YachtHaul pays up to $10,000 for: Delivery to the yard including Skipper’s fees, lay-days, haul, block and launch, and removal and safe storage dodger, cover, sails and other equipment normally stowed on deck.

Our commercial marine insurance brokers can explain this specialized coverage in more detail.

Commercial marine and inland marine insurance policies both protect goods that are being transported, but the modes of transportation they cover tend to be different. Commercial marine policies usually cover shipping across water and inland marine policies are designed for moving across land.

The term “inland marine” comes from the bygone days when rivers, canals and lakes were normally the most efficient way of moving goods inland, but the majority of these policies have been updated since to include more modern modes of transportation.

Like most other types of insurance policies, exactly what protections a particular commercial marine policy covers are determined by the policy’s terms, conditions, and exclusions.

Nonetheless, there are many coverages that a policy might make available. Some of these are: hull and machinery insurance – which protects the vessel against physical loss or damage as the result of an insured peril; protection and indemnity insurance - which protects and indemnifies the vessel against third-party actions (liabilities) brought against the vessel or vessel owner; marine general liability insurance - protects the insured against third-party actions (liabilities) as a result of their marine operation; marine cargo insurance - protects cargo against physical damage and the coverage can be while in transit or onshore location; loss of hire and earnings insurance - protects against loss caused by an insured peril; and mortgages interest and lenders insurance - protects the mortgagee or lender for uncovered losses under the hull & machinery policy due to a breach of warranty (also known as innocent owners insurance).

In most cases, the combination of coverages can be adjusted to meet a business’s unique needs.

While commercial marine policies are primarily intended to insure goods while they’re aboard an ocean-going vessel, some of these policies also cover ancillary periods. Depending on a policy’s terms, it may extend protection to when goods are in storage at a port, being driven between a ship and their end destination or being flown in an airplane.

An insurance agent who’s familiar with commercial marine policies can help businesses understand how their commercial property, inland marine, commercial marine, and marine cargo insurance policies interface. This is essential to make sure goods are properly insured at all times before, during and after transport.

Finding the right commercial marine insurance company can help ensure you’re receiving the comprehensive coverage you need and understand your policy. After all, different marine insurance companies may offer different coverage limits, deductibles, exclusions, and any additional services.

A marine insurance broker with industry expertise will take the time to understand your company and risk profile to help tailor a commercial marine insurance plan for you.

Commercial marine insurance can provide coverage for a wide variety of different vessels. This can include, but is not limited to, cargo ships, fishing boats, ferries, and tugboats.

The important differentiation is that commercial marine insurance is for vessels used for commercial purposes. An average boat owner would not qualify for this type of coverage but should consider personal watercraft insurance.