What is Marine Insurance, do I need it for my business?

MV Kohu Ra Tuarua is a New Zealand ferry (source: pxhere.com)

Today I'm going to share about "Marine Insurance", I know it is very unusual of me to share about this topic. But don't you know its the oldest form of insurance. It may be called as an origin of the insurance business. Marine insurance is a contract of indemnity against the losses of account of perils in the sea. Also, is a contract between the marine insurance company and the insured or the shippers under which the insurance company undertakes to compensate the losses to the ship, the cargo or the freight due to particular marine peril, during sailing in exchange of consideration of a certain amount of money or items.

To simplify... The insurance policy of marine insurance can cover the loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination, or while in transit over the sea. Some insurance can cover even the pipelines and oil platforms.

Why Marine Insurance is important?
In case of an unfavorable event will occur, such as accident or damage to the goods or cargo ship, the insurance company will be responsible and will ensure to handle any such problem occurred as long as the policy cover it.

What are the general liability of an insurance company to their client?
The insurance company has various liabilities, depending on the insurance plan. Some most common liabilities of an insurance company for marine insurance is bodily injury, good damage, personal injury, damage from slander or false advertising (known as advertising injury).

Does Marine insurace cover the fire on good or ships?
Mostly yes, but better inquire with your insurance company. Because some insurance company considers the fire insurance on their premium plan.

Do I need to know if my good in transit has insurance?
Yes, but some don't consider it to ask since most shipping companies make sure that the cargo ship and goods have insurance. But if you are going to ship an expensive good, you must inquire about the details of their insurance and what is covered and not.

What the difference of Cargo Insurance and Freight Insurance
Cargo insurance?

Cargo insurance is a policy bought by the shipper and covers one or all cargo "exposures" by sea. Can be either single risk or open cargo policy.

While the Freight Insurance is also called cost & freight (C&F, CFR) and is payable by the importer. Meanwhile, the exporter pays transportation costs.

Do I need Marine Insurance for private ship?
Yes you do, since the marine insurance cover the damages for your private ship, including the injury or accident while you or another person is on the ship.

If you are from the Philippines and own a private ship or cargo/carrier ship and looking for Insurance company, I would like to recommend Malayan Insurance, is an insurance company in the Philippines, they provide insurance policies that protect you against navigation risks to which a ship, cargo, freight, profits or even interests on movable properties which may be exposed to perils of the sea during a voyage or for a period of time. For your cargo, Malayan can ensure you against perils of the sea such as lightning, damage due to heavy weather, sinking, fire/burning, stranding/ grounding, typhoon, collision, tsunami, barratry, piracy and jettison.

For those who regularly ship cargo in and out of the country, Malayan offers the OPEN MARINE CARGO POLICY. This is a continuing contract of marine insurance between the assured and the insurance company that automatically covers the assured's cargo without having to apply for a new policy for each shipment.

Sources: