What is Marine Insurance and Marine Transit Insurance

What is Marine Insurance and Marine Transit Insurance

The cheapest way of moving massive amounts of goods from one place to another is ocean freight. The invention of the railroad is considered a big revolution in the industry. It is the cheapest way to move people and goods on land. However, ships made it possible to move goods from one continent to another continent centuries ago. Still, ocean freight covers more than 90% of the global trade. Companies involved in maritime transport move 10 million metric tons across the globe in one year. It is a safe and cost-effective mode of transportation. Most of the time, people get their cargo shipped in the expected condition and on schedule. However, despite being the safest, there are some risks associated with shipping. This is the reason why companies invest in marine transit insurance

These risks fall under the following three categories:

  • Weather hazards
  • Technical hazards
  • Geographic hazards

The right marine transit insurance covers most of these risks.

Marine Insurance

It is an insurance policy that covers damage or loss to:

  • Ships
  • Cargo
  • Terminals and more

The goal of this insurance policy is to minimize the financial loss the policyholder has to incur due to events like accidents, thefts, vandalism etc. 

An accident may occur due to human mistakes or it can be natural. It is advised to get an insurance policy that covers both onshore and offshore properties such as terminals, ports, marine liabilities, marine casualties and so on. 

Marine Transit Insurance

It is also known as transit insurance or marine cargo insurance. Marine insurance has sub-branches and marine cargo insurance is one of these sub-branches. This policy covers goods being transported against damage and loss due to some external causes. This policy can cover the following:

  • Natural disasters, man made accidents or any other event can cause partial or total loss to the goods being transported. This damage or loss occurs during shipment. 
  • When the conveying ship, train, plane or another vehicle is involved in an accident, this can cause damage or loss during shipment.
  • Damages or losses may occur during loading or unloading. 
  • If the overall journey involves temporary storage, goods can be damaged or lost in the temporary storage as well. 

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