Marine Insurance can be defined as a type of insurance that covers the risks associated with marine activities such as shipping, fishing, and boating. It also includes insuring against damage to your boat or other vessels. Marine insurance is one of the most important types of insurance you should have in place for your business. This article will help you understand what it is, the types of Marine Insurance, how it works, and why you need it.

What are the three types of Marine Insurance?

There are three main types :

Marine hull insurance

This type of marine insurance protects your vessel (boat) from physical damage. If your boat were to sink, this would mean losing everything on board including any valuable equipment and supplies

Marine cargo insurance

Cargo insurance helps you recover money if something happens to your goods while they’re being transported by sea.

Liability insurance

Liability insurance protects you from legal claims made by third parties who may suffer injury or property damage due to your negligence.

All three cover different aspects of your business. They all work together to protect your assets from loss or damage.

Why do I need Marine Insurance?

The reason you need marine insurance is simple – because you don’t want anything bad happening to your boat or your cargo! You could lose thousands of dollars worth of personal belongings or even go bankrupt if your boat sinks or your cargo gets damaged.

So, before you make any big decisions regarding your boat or cargo, ensure you have the right insurance coverage in place.

How does Marine Insurance Work?

The way marine insurance works is very similar to car insurance. Your insurer pays out when an insured event occurs. An insured event is anything that causes damage to your boat or cargo. For example, if your boat was hit by another boat, then your insurer would pay to repair or replace the boat.

If your boat sank, your insurer would pay out for the cost of repairing or replacing it.

In both cases, the amount paid out depends on the value of the item lost or damaged.

For example, if you had $10,000 worth of cargo on board your boat, and it got damaged, your insurer would pay you back $10,000.

Who Needs Marine Coverage?

Anyone involved in a maritime activity needs marine insurance. That means anyone who owns a boat, sails, fishes, or transports goods by sea.

It doesn’t matter whether you own a small dinghy or a large yacht. The only thing that matters is that you use your boat to transport people or goods across the water.

You might not think about it, but there are many things that can happen to your boat or cargo while you’re sailing around the world. These include collisions with other boats, storms, fires, theft, vandalism, and more.

You need marine insurance to protect yourself and your assets from these events. Contact us today for a customized quote