Ocean Marine Insurance

What Does Ocean Marine Insurance Mean?

Ocean marine insurance provides coverage for various risks associated with the transportation of goods across oceans. It typically includes protection for the vessel (hull insurance), the cargo being transported, the shipping company’s potential revenue (freight insurance), and liabilities arising from shipping operations. It sits within the broader category of commercial marine insurance, which also covers inland waterway and dockside operations for businesses involved in maritime trade.

Insuranceopedia Explains Ocean Marine Insurance

Shipping companies face numerous perils that can result in significant losses, such as collisions with objects or other vessels, running aground on coral reefs, piracy, and adverse weather conditions. A comprehensive ocean marine insurance policy can safeguard against most of these risks. However, many policies include exclusions for issues like general wear and tear or mold. Shippers who move goods overseas without owning the vessel often buy freight insurance instead, since that policy covers the cargo itself rather than the ship or the operator’s liability.