SPECIALIST MARINE INSURANCE
The journey overseas is often an incredibly rough and hazardous expedition for marine cargo and the vessels on which this inventory gets transported. The risks associated with weather, geographical, and technological hazards are constantly at play.
Our latest blog looks at how specialist marine insurance policies provide cover against threats at sea.
According to the World Shipping Council, the reality exists that despite the global shipping industry ensuring proper packing of cargo into the container, correct container weight, and proper stowage and securing aboard ship, a number of additional factors ranging from severe weather and rough seas to more catastrophic events such as ship groundings, structural failures, and collisions can result in the unfortunate loss of containers at sea.
Marine insurance is a prudent precaution that empowers importers and exporters to protect their inventory (in the form of cargo) or their investments (in the form of the transporting vessels) from unpredictable risks that have the potential to be exceedingly costly.
TYPES OF MARINE INSURANCE:
By registering for Marine Insurance, importers and exporters are covered against risks that may result at sea (referred to as ocean marine insurance cover) or on land (known as inland marine insurance cover).
According to Santam, ocean marine insurance is divided into three primary categories, namely:
- Hull insurance which covers for losses and damages to the vessel,
- Cargo insurance which covers for losses and damages to the cargo inventory, and
- Protection and Indemnity insurance, which covers against third-party damage to cargo as well as damages to piers, docks, underwater cables, and bridges. It also offers important cover to vessel owners in the event of death or injury to ship passengers, crew, or cargo loaders.
LET’S TAKE A DEEPER DIVE
- Hull insurance caters for fishing vessels, diamond recovery vessels, and charter vessels which are used for commercial maritime transportation.
Ships of all shapes and sizes are at risk of extreme conditions and hazards. As such, the importance of offering Marine insurance for “pleasure craft” vessels exists, too. This specific marine insurance offers cover for the use of vessels in inland waterways (rivers and dams), outland waterways (blue waters), as well as deep sea fishing and international yacht racing.
- When considering cargo insurance, human error, weather, and technical failure are the most common risks that come to mind. If an importer or exporter is not preparing for these potential dangers and setbacks, they’re preparing for absolute disaster when it does strike.
Responsible for transporting ninety-percent of global trade, cargo ships serve a fundamental function in the foundation of the World’s economy. However, according to The World Shipping Council (WSC) Containers Lost at Sea Report covering 2020-2021, the average number of cargo containers that have been lost at sea has increased by 18% over the past two years, amounting to 1629 cargo containers lost during commercial maritime journeys. Cargo Insurance packages offer coverage for:
- The physical loss or damage to all cargo that is being imported or exported locally and/or internationally.
- All local and international transit let, and
- Project cargo which can be extended to include delay in start-up under an advanced loss of profit policy.
- Marine protection and indemnity insurance has been specifically designed to provide adequate cover against a plethora of risks that are associated with the operation of a vessel. For example, it offers insurance against damages that are caused to cargo by third-parties.
Additionally, it helps safeguards against a host of the environmental damages that typically result from maritime transportation, such as pollution, oil spills, war, etc.
SHINING A MASTHEAD LIGHT ON IMPORTANT PROVISIONS:
- Free of Particular Average (FPA) is an ocean marine insurance policy provision that excludes the coverage of partial losses that occur to the cargo or to the hull of the vessel, except those resulting from stranding, sinking, burning, or collision.
- With Average (WA) is a provision that covers for the total loss of cargo, as well as for the partial loss of below-deck cargo.
- All Risks (AR) is the all-important provision which affords importers and exporters the broadest and most comprehensive cargo insurance coverage possible. This ensures that coverage is offered for any and all loss, theft and damage to marine cargo.
RUN A TIGHTER SHIP WITH GENESIS’S LEADING MARINE INSURANCE SOLUTIONS.
Our dedicated insurance brokers are here to offer you, as an importer, exporter or owner of a maritime vessel, the specialist knowledge, advice and support that is required to ensure that your organisation benefits from the most prudent and reliable Marine Insurance solution.
For more information, get in touch with our team today to ensure that the value of your future maritime voyages is expertly safeguarded and preserved.