What Do You Want to Safeguard Today?
What is Marine Insurance?
Marine insurance is a specialized policy that safeguards businesses and their assets against risks associated with the transportation of goods or cargo from the point of origin to the final destination. This insurance provides coverage across all modes of transportation, including road, rail, air, sea, courier, and postal services.
The policy can be tailored to meet specific needs:
- Single Transit Policy: Offers coverage for a one-time shipment from point A to point B.
- Open Policy: Provides ongoing coverage for the transportation of similar types of goods within the insured sum limit, ensuring protection across multiple shipments.
What Types of Coverage Does Marine Insurance Provide?
Marine insurance offers protection for businesses against a wide range of risks that may occur during the transportation of goods. The types of coverage available include:
Liability Insurance
Provides protection against legal liabilities arising from transportation-related incidents.
Hull Insurance
Covers damages to the hull (body) of the transport vehicle, safeguarding it from accidents or other mishaps.
Cargo Insurance
Ensures the safety of goods being transported, protecting them against damage or loss during transit.
How to Choose the Right Plan
| Understand INCOTERMS | INCOTERMS define the transfer of responsibility between buyers and sellers, outlining obligations, costs, and risks associated with the delivery of goods. These terms are a key part of sales contracts. Commonly used INCOTERMS include: Ex Works (EXW): The buyer assumes responsibility as soon as goods leave the seller’s premises. Free On Board (FOB): The seller delivers the goods onto the shipping vessel, after which the buyer takes over. Cost, Insurance, Freight (CIF): The seller covers the cost, insurance, and freight until the goods reach the buyer’s port. |
| Single Transit vs. Open Cover | For business owners, making cost-effective decisions is essential. While a Single Transit policy may work for occasional shipments, an Open Cover policy is more economical and convenient for businesses with frequent shipments. Open Cover policies provide broader coverage and eliminate the hassle of purchasing individual policies for each consignment, with flexibility on per-sending limits. |
| Types of Cover | Marine transit policies are primarily categorized into: Import/Export Transits Inland Transits Each of these is further divided into two types of coverage: Type A: An all-risk cover that provides comprehensive protection but comes at a higher cost. Type B: A basic cover that includes protection against natural perils and select risks, depending on the insurer’s terms. Choosing the right plan depends on your specific business needs, shipment frequency, and the level of risk you’re willing to manage. |
Understanding Marine Insurance Coverages
