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Marine Insurance is a term that generally encompassed a variety of insurance types for marine vehicles. Understanding the various types of marine insurance is particularly critical for marine businesses. Some of the types of marine insurance include hull insurance, machinery insurance, P&I insurance, liability insurance, FD&D Insurance, and marine cargo insurance. Each type of insurance covers specific types of structures and events that could happen in relation to marine craft or marine businesses.
Hull Insurance is a critical form of marine insurance. Hull coverage will protect a ship or watercraft owner in the case that damage happens to the hull or any furniture onboard. The hull refers to the watertight body of a watercraft. In many cases, the hull makes up the majority of the ship. Hull insurance covers damage occurring to a large portion of the boat or ship. Covering just about any type of boat, hull insurance is a solid investment for individual and commercial vessel owners.
Machinery Insurance will cover damage to any ship machinery that is essential to its functionality and purpose. All claims must be approved by a surveyor for them to be approved. Machinery insurance is recommended for any commercial vessels. Hull insurance and machinery may be offered as one combined insurance policy referred to as H&M insurance. During times of high war risk, extensions to this type of insurance can cover war strike-related damages.
Protection & Indemnity (P&I) Insurance is provided by a club called the P&I club. This type of insurance can be considered a gap insurance. The P&I club is shipowners mutual insurance that covers any third party liability risks not covered by H&M insurance. The protection party for P&I Insurance covers risks associated with vessel ownership and ship crews. The indemnity provides protection against the ship’s functions such as cargo transportation.
Liability Insurance for marine vessels is similar to liability insurance for a car. In this case, the insurance would cover any compensation sought for a boating accident. Liability insurance is not required but it is recommended for any marine vessel owners.
FD&D Insurance stands for freight, demurrage, and defense insurance. This type of insurance may sometimes before referred to simply as damage insurance. The purpose of FD&D insurance is to cover any costs for filing a claim that is not covered by hull or machinery insurance. Some examples include legal costs and assistance with handling.
Freight Insurance should be added to any insurance policies for freight ships and other vessels that transport cargo. In the event of an accident, freight insurance will cover any lost cargo costs. This type of coverage will protect the freight company from losses caused by the missing cargo.
Marine Cargo Insurance also provides coverage for cargo carrier vessel owners. In the case of any cargo damage or losses caused by delays or unloading, marine cargo insurance will cover the losses. This includes third-party liability coverage for damage caused by a port.
All of the above forms of insurance are all types of marine insurance. Reliant Adjusters Group is a firm of public adjusters that are highly experienced with marine insurance and claims. Florida is home to many ports and many boat owners. Our experts at Reliant Adjusters Group can assist in interpreting marine insurance policies and filing claims to optimize payouts. For assistance with a marine insurance claim, contact us today at (561)929-9826.