All insurance is designed to help you or your business manage risks in the event of accidents or damages. Marine insurance is designed to help manage the risks involved with the travel of goods from one destination to another.
Despite what the name implies, marine insurance covers all modes of transportation of goods. However, it originated when people began shipping goods overseas and wanted a way to manage the risks involved. Read on to learn more about the four types of marine insurance.
Why are there different types of marine insurance?
There are many different risk factors involved when it comes to marine ships. There is a risk of losing valuable cargo, damaging ships, injury to passengers onboard, or even damaging the environment due to accidents like oil pollution.
In order to cover all of these different kinds of risk, there are four types of marine insurance. Depending on the nature and scope of a client’s business, they can choose the insurance packages that best fit their business. Here is more information about the four types of ocean marine insurance.
Types of Marine Insurance
Freight Insurance
Freight insurance is a type of marine insurance that compensates for the loss of freight. This applies if goods are accidentally damaged in transit. Freight insurance provides protection to corporations that could lose money if goods are damaged in transit. If something happens to the freight, the insurer will reimburse its value so businesses don’t have to cover the expenses themselves.
Liability Insurance
Liability insurance helps cover property damage and legal liabilities that arise from negligence in the operation of a vessel. You can think of marine liability insurance as automobile insurance. It helps protect various entities involved in the shipping and marine industries.
Hull Insurance
Hull insurance is a type of insurance that covers damages to the hull and torso of water vehicles like boats, ships, and steamers. It covers the ship and its machinery and equipment against damages and accidents.
Cargo Insurance
Finally, cargo insurance specifically insures the goods that are being transported from one country to another. It covers the loss or damage of goods while they are in transit on the ocean.
Need business insurance? We’ve got you covered!
At Coughlin Insurance Services, we believe that our customers should be valued and taken care of. We aim to provide quality service and meet the needs of our clients by providing businesses, including those in the food industry, with the insurance they need to protect their assets. If you’re a business looking for insurance, don’t hesitate to reach out for a free insurance quote today!