There are several types of marine insurance that provide coverage for different aspects of maritime activities and transportation.
Main Types of Marine Insurance
Cargo Insurance
Cargo insurance provides coverage for goods being transported by various modes of transportation, including ships, airplanes, and trucks. It protects against loss, damage, or theft of the cargo during transit. Cargo insurance can be further classified into specific types such as open cover policy, voyage policy, and annual policy.
Hull Insurance
Hull insurance covers the physical damage or loss of the vessel itself. It includes coverage for the ship’s hull, machinery, equipment, and fixtures. Hull insurance is typically purchased by shipowners or operators to protect their vessels from risks such as collisions, sinking, fire, and natural disasters.
Protection and Indemnity (P&I) Insurance
P&I insurance provides coverage for the legal liability of shipowners, operators, and other parties involved in maritime activities. It protects against claims for bodily injury, property damage, pollution, wreck removal, and other liabilities arising from the operation of ships. P&I insurance is often provided by specialized mutual insurance associations.
Freight Insurance
Freight insurance protects the financial interest of the shipper in the freight charges if the cargo is lost, damaged, or delayed during transit. It reimburses the shipper for the loss of expected revenue due to non-delivery or damaged cargo.
Builder’s Risk Insurance
Builder’s risk insurance provides coverage for the ship or vessel while it is under construction or being repaired. It protects against risks such as damage to the vessel during construction, machinery breakdown, and other perils.
War Risk Insurance
War risk insurance covers the risks associated with war, acts of terrorism, and political unrest. It provides coverage for damage or loss to vessels, cargo, and associated liabilities that may arise during times of conflict or in high-risk areas.
Loss of Hire Insurance
Loss of hire insurance compensates shipowners or operators for loss of income or charter hire in the event that the vessel becomes unable to operate due to damage or loss covered by the hull insurance.
