Marine Insurance Coverages
Hull & Machinery Insurance | Commercial Hull Insurance generally includes coverage for both physical damage to an owned or chartered vessel, salvage costs and limited property damage liability (collision and towers' liability) for the operation of that vessel.
There are also specialized adaptations of hull insurance to cover vessels under construction (Builders' Risk) and for marine inventory held for sale (Boat Dealers' Physical Damage).
Marine Cargo Insurance | Covers losses arising from physical damage to cargo and related liabilities whilst it is in transit by sea and for up to 60 days whilst in storage. (After 60 days it will be seen as Property - Standalone storage.)
The risk location is usually the territory in which the insured is resident or its business establishment is situated. However, in a few instances, where the goods are physically situated or being transported to and from will also create a regulatory and tax location of risk.
Ship-Owners' Liability (SOL) to Cargo | Is a common term used to describe the insurance arranged to cover a member's liabilities arising from a breach of contract of carriage, where such a breach deprives the carrier of the right to rely on defences or rights of limitation which would otherwise have been available to him. A typical SOL example is geographical deviation or departure from the contractually agreed voyage; liability for loss of and/or damage to cargo arising out of such a deviation falls outside the scope of standard P&I.
Protection and Indemnity (P&I) Insurance | Is liability coverage for watercraft. It protects the insured from liabilities, from bodily injury, or property damage arising out of the use, or ownership of declared vessels. There are several commonly used protection and indemnity forms and many proprietary forms used for this insurance. Most P&I forms offer payments for loss of life, injury, illness, hospital, and medical expenses.
FD&D (Freight Defence & Demurrage) | Provides access to lawyers and their professional legal advice in non P&I matters.
Defence Insurance also covers costs incurred for necessary legal assistance in charter party and other disputes directly connected with the operation of the vessel. The insurance is available to Ship-Owners and Charterers.
War risk insurance | Makes the most sense for entities that are particularly exposed to the possibility of sudden and violent political upheavals. For example, companies operating in politically unstable parts of the world are exposed to an elevated risk of loss from acts of war. War risk insurance can cover perils such as kidnapping and ransom, emergency evacuation, worker injury, long-term disability and loss or damage of property and cargo. Some war insurance policies also cover acts of terrorism, but others consider terrorism and war to be two separate categories of peril.
Yacht Insurance | For any vessel type, of private, professional or navy use, both for small vessels and Yachts , there are package policies which combine hull coverages and marine liabilities coverage into a single policy for recreational vessels.
Yacht Insurance policy can insure you against most risks of owning and operating your boat, its motor, and its trailer — including protection against liability lawsuits and medical payments
Marinas | Shipyards
Yard activities include quite a diverse number of disciplines - building trades (iron workers, electricians, painters, plumbers, ship's carpenters) to electronics specialists (servicing on-board computers, navigation and communication systems). To this mix some marinas add boat moorage and storage, a ship’s store, food, fuel, and boat sales. As a consequence, even the smallest marina is regulated to death, it seems, and has quite an array of exposures.
Insurance programs for yards are a mixture of both maritime and land-based insurance coverages. Since the products and completed operations can involve life-safety of vessel operators, the insurance industry gives much attention to shipyards. For marinas, third party liability coverages for slips and falls on the docks, damage to boats in the marina and product/completed operations liability for repair work are most common.Liability for leaks of an in-ground tank, fuels spills or a spill from a marina-owned vessel are also very real exposures for marinas with a gas dock.
Like any other business, a yard is required by the state to purchase workers compensation insurance for employee injuries and automobile liability coverage to fulfill their financial responsibility obligations.
Traditional marine coverages of hull insurance and protection & indemnity are needed to cover both owned boats and liability for customers’ boats while being berthed, stored, repaired or tested by yard workers.