Marine Insurance Cheat Sheet

Ever wondered what the heck marine insurance is all about?

We have put together this piece to look at the various aspects of marine insurance from the various types to the market structure including the International Group P&I club members.

What it contains:

1. Cargo Insurance
Definition: Insurance that covers the loss or damage of goods (cargo) while they are being transported, typically by sea.

Risks Covered: Physical loss or damage to goods from any external cause during shipping, whether by land, sea, or air.

2. Hull and Machinery Insurance
Definition: Insurance that covers physical damage to the ship itself, including its machinery and fuel.

Risks Covered: Damage to or loss of the vessel due to perils of the sea, fire, collisions, and other specified risks.

3. P&I Cover (Protection & Indemnity)
Definition: Liability insurance for watercraft. It protects the insured from third-party liabilities that arise during the ship's operation.

Risks Covered: Liabilities such as injury or death of crew members, damage to piers, buoys, or other boats, oil pollution, and other third-party claims.

4. Marine Liability Insurance
Definition: Insurance that covers a shipowner's liability incurred for damages caused by their vessel to third parties.

Risks Covered: Bodily injury, property damage, removal of wreck, and other related liabilities.

5. Freight Insurance
Definition: Covers the loss of freight or the cost to ship goods when goods are lost or the voyage cannot be completed.

Risks Covered: Loss of anticipated freight charges due to voyage interruptions or cancellations.

6. GIT (Goods In Transit)
Definition: Insurance that covers goods against loss or damage while they're being transported from one place to another, not restricted to sea transport.

Risks Covered: Theft, damage due to accidents, loss, and other perils during the transit of goods, whether by road, rail, sea, or air.

7. Fine Art & Specie
Definition: Insurance specifically designed to cover high-value items such as art, jewelry, gold, and other precious items.

Risks Covered: Physical loss or damage of covered items due to theft, transit-related damages, natural disasters, and other specified perils.