What is
Marine Insurance
Marine
insurance is a type of insurance that covers boats and ships, as well as their
cargo and in some instances the places
where the boat or ship is docked. In 1906, the Marine Insurance Act was passed
under British law, creating a standard operating procedure for policies that
dictates the world's policies to this day. There are several varieties of
insurance that can be taken out by a boat or ship owner. Marine cargo insurance
covers whatever goods the boat is carrying. Inland marine insurance can be
procured for floating vessels that are not ocean-bound, but travel primarily on
lakes, rivers and reservoirs. There are also more general policies that cover
the boat itself and its passengers, liability for damages to other moving
vehicles and liability during an encounter with a non-moving object. These all
fall under the heading of a marine insurance policy.
A private
ship owner who uses his large boat for pleasure cruising in a marina may wish
to take out inland marine insurance, as well as specialty y`cht insurance. A
merchant ship sailing in politically unsure waters may find it necessary to
take out cargo insurance as well as a specific war policy that protects the
boat and goods in the event of unfriendly actions. Marine insurance is often
available through general insurance companies, and many car insurance dealers
offer discounts to those who pay for more than one policy through their
company. There are also dealers who work singularly in this area and only offer
marine boat insurance. Policies can be broken down to cover only the boat, only
the cargo, or both; most do not include coverage of objects on the boat that
are not required for the ship's operation, such as computers, cell phones, or
other types of valuables.
The rates
of a marine insurance company vary depending upon the type of boat, size of
boat, use of boat and the owner's current insurance history. Purchasers should
be aware that the necessity for watercraft insurance varies by country and
region.
