What does ocean marine insurance covers


During the exchange of goods from one country to another country by ship domestically or internationally, those goods are damaged due to various natural or man-made disasters. And mainly to protect those goods from all these losses, ocean marine insurance has been introduced. This insurance covers the loss of goods shipped by sea from the beginning of the shipping process till the moment it reaches its destination. Ocean marine insurance also covers compensation against several other losses.

What does ocean marine insurance covers
Which will be covered in this full post. Also, you can learn various new information about ocean marine insurance from this post. So definitely read the entire post carefully.

What is ocean marine insurance?

What is Ocean Marine Insurance? Ocean marine insurance is a type of insurance similar to other insurance such as life insurance, home insurance, car insurance, fire insurance, etc., that provides coverage for goods, cargo, ships, and other vessels transported by sea. This type of insurance provides protection against risks associated with maritime transport, including loss of goods, damage to vessels, and liabilities arising from marine accidents.

An example may make the matter clearer to you. Suppose, a company called ABC in the United States will import a cargo by sea from distant China, now if there is an accident during the importation of the goods or the ship, then the ABC company can claim to cover these losses. 

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Now the question is who will make this claim. The company called ABC can claim compensation from the insurance company that takes out the ocean marine insurance.

The simple definition of ocean marine insurance is - if there is any damage to the product or ship due to any natural or man-made accident while importing or exporting any goods by sea and the insurance that is taken to cover those losses is basically called ocean marine insurance. Hope the matter is clear to you.

Different types of ocean marine insurance

If you have read the above section then you already understand what is ocean marine insurance. At this stage, we will know about the different types of ocean marine insurance. Although insurance companies in the current market offer different types of ocean marine insurance to their customers. However, there are three common types of insurance companies offer to their customers for ocean marine insurance. Which is shown below.

  • Hull Insurance
  • Cargo Insurance
  • Liability Insurance

Hull Insurance

Hull insurance provides coverage for physical damage to a vessel and any operating equipment and machinery located on the vessel. Basically, this insurance covers physical damage to a vessel. This insurance policy protects a ship against risks like sinking, collision, piracy, fire, and other perils. Today, tugboats, barges, other miscellaneous floating equipment, and even offshore well rigs and similar installations, including several other fixed assets, are all candidates for hull insurance. Such insurance is important for a ship owner, operator, and financiers to protect their investment in the ship. And since accidents always happen on the water and you never know when an accidental collision or damage might occur, be sure to ask your insurer about hull insurance before taking out ocean marine insurance.

Cargo Insurance

Cargo insurance is basically to protect the various types of cargo on board the ship against various types of damage. Goods on board can be damaged due to various reasons like weather, theft, piracy, etc. This insurance policy can be taken for individual consignments or in case of open policy, can cover any and all consignments made during the policy period. 

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Along with hull insurance, this type of insurance will ensure that your ship and all types of cargo on board are covered.

Liability Insurance

Marine liability insurance covers various types of third-party liability that owners of marine equipment are exposed to during the operation of a vessel. Marine liability insurance is also known to many of us as protection and indemnity or P&I coverage. Here are the main aspects of P&I coverage.

  • Wreck cleanup and removal;
  • Expenses resulting from quarantine.
  • Damage to cargo in certain situations
  • Damage to other vessels or property caused by collision
  • Injury, illness, or loss of life caused by a vessel’s operation
  • Medical expenses relating to any injury, illness, or loss of life
  • Damage to other vessels or property caused by incidents other than collision

Apart from the ones mentioned above, there are several other types of ocean marine insurance. Which is given below in list form –

  1. Freight Insurance
  2. War Risk Insurance
  3. Demurrage Insurance
  4. Loss of Hire Insurance
  5. Total Loss Only (TLO) Insurance
  6. Builder's Risk Insurance
  7. General Average Insurance

What does ocean marine insurance covers

Ocean marine insurance provides coverage for various types of damage to goods and ships transported by sea. This type of insurance is mainly important for those of us who commercially transport goods by sea from one country to another. But before taking such insurance they must know that ocean marine insurance will provide coverage against damage to cargo and ship. Below is a list of the types of losses that ocean marine insurance can provide coverage against.

Loss or damage to cargo

Ocean Marine Insurance This insurance covers compensation for the damage if the goods carried on the ship are damaged by sea, air, or land, due to perils like sinking, collision, piracy, fire, theft or rough handling.

General Average

In maritime law, the general average refers to the principle that all parties involved in a sea voyage share proportionately in the losses incurred to save the vessel and cargo from a common peril. Ocean marine insurance may cover the insured's contribution to general average expenses.

Freight charges

Ocean marine insurance may cover the freight charges paid by the insured if the goods are lost or damaged during transit by ship.

Salvage charges

Operations are often required to prevent damage or loss of cargo carried on board ships at sea. Many types of expenses can be incurred during these expeditions that can be covered by ocean marine insurance.

War and piracy risks

Shipping of goods by sea often involves the risk of damage to goods or ships due to war or piracy. And such risks can be covered by ocean marine insurance.

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Delayed shipments

Many times cargo ships may be delayed due to various reasons such as port closures, strikes, or adverse weather conditions. Due to this, there is a risk of financial loss. Such risks are covered by ocean marine insurance.

Liability coverage

Ocean marine insurance may also provide liability coverage for damages caused to third parties or their property as a result of the insured's maritime operations.

Hull coverage

In case of any physical damage to the vessel or any operating equipment of the vessel or machinery located on the vessel, this insurance may provide coverage against such damage.

In addition to the above-mentioned coverages, this insurance can provide coverage against various types of losses. You can find out from Ocean Marine Insurance Provider.

What does ocean marine insurance not cover

Although ocean marine insurance policies are very comprehensive, these insurances have several limitations. These insurances do not provide coverage against several incidents. These may include normal wear and tear, gradual deterioration, weather, insects, mold, damage by various animals, etc. But yes these limits may vary based on the insurance provider. Below is a list of things that ocean marine insurance does not provide coverage against.

Negligence or misconduct: This insurance does not cover damage to the ship or ship's goods due to negligence of the ship's captain or damage due to improper handling.

Improper packing: This insurance does not cover damage to the ship's cargo due to non-safe packing.

War and civil unrest: If there is damage to the ship or ship's goods due to war, riots, or political unrest, that loss is generally not covered by this insurance.

Normal wear and tear: Gradual deterioration or damage from weather, insects, or animals is not usually covered by this insurance.

Temporary storage: This insurance may not apply if the ship or the goods on board are not specified etc.

How much does marine insurance cost?

Many of you have asked how much marine insurance costs. In fact, it is difficult to determine the cost of marine insurance. Because naval bomb costs can vary greatly depending on several factors. The cost of marine insurance varies depending on factors such as type of coverage, value, and nature of cargo or vessel insured, voyage route and destination, the risk profile of the insured and insurance, etc. But normally marine insurance premiums are calculated as a percentage of the value of the insured cargo or vessel, which is often 0.1% to 2% of the insured value. However, this percentage may vary depending on the factors mentioned above. How to claim marine insurance?

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After knowing the above-mentioned information about marine insurance, the question may arise in your mind how to claim marine insurance? Let us at this stage know about the steps to claim marine insurance from this part of this post.

1. Assess the Loss or Damage

The first step in making a marine insurance claim is to thoroughly assess the damage or losses incurred during transit. If applicable, make a list of lost items and determine the cause of loss such as date and time of occurrence, location, and nature of loss or damage, etc.

2. Notify the Insurance Company Promptly

Notify your insurer of any damages you incur as soon as possible. The sooner you report to your insurance provider, the smoother your claim process will be.

3. Gather Required Documents

Collect the following required documents for a marine insurance claim. But yes these documents may vary depending on your insurance provider.

  • A completed claim form (usually provided by your insurer).
  • Proof of loss or damage, such as a survey report or repair estimate.
  • Evidence of ownership or interest in the insured property (e.g., bill of lading, cargo manifest).
  • Any other relevant documentation, such as invoices, receipts, or communication regarding the incident.

4. Survey and Assessment

In many cases, the insurance company will hire a marine surveyor to determine the extent of the loss or damage that has occurred. who will investigate the circumstances surrounding the incident, inspect the affected product or vessel, and provide an independent assessment of the TAB? They must provide all access and information necessary to facilitate the investigation.

5. Claim Review

In this step, the insurance company will review the claim of the insured and all the documents submitted by him. The insurance company will assess the validity of the claim, comparing the information provided with the terms of the insurance policy. After evaluating these factors, if the claim seems valid to the insurance company and falls within the coverage of their policy, they will determine the claim settlement amount.


Dear Readers, So far we have tried to highlight various information about ocean marine division in this complete post. Where we always try to give you accurate information. However, if there are any mistakes, we hope you will forgive them. And ocean marine insurance is always related to the ocean. That is, ocean social insurance is made to cover various types of risks involved in the exchange of other goods by sea. 

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Which is more important for a commercial trader. And yes, if you like this post then definitely share it with your friends and relatives and make it possible for them to know about various information about ocean social marriage. Thank you.

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