Types of Marine Insurance

There are several types of marine insurance cover to cater to different needs. Let
us see what they are.

1. Freight Insurance
Freight insurance protects a merchant ship’s owning corporation, because they are
prone to losing money in freight. For example, if you lose the cargo due to an
accident, freight insurance will cover the losses.
2. Freight Demurrage and Defense Insurance
This one is commonly known as FD&D or defence. This marine insurance
covers legal costs claims and handling assistance for a broad range of disputes not
covered by P&I, Hull, or machinery insurance.
3. Hull Insurance
This marine insurance covers your vessel’s hull and torso, along with other pieces
and articles of the ship’s furniture. You can take out hull insurance as an owner to
avoid any damage or loss to your ship, boat, or vessel in case of an accident.

4. Liability Insurance
A liability marine insurance policy offers compensation for any liability caused due
to your ship colliding or crashing, or any form of induced attacks.

5. Marine Cargo Insurance

If you are a cargo owner, you are at risk of mishandling the cargo at any stage, i.e.,
from handling at the terminal or during the voyage. This may result in loss,
misplacement, or damage to the goods. Therefore, to protect your interest as the
cargo owner, marine cargo insurance will cover your losses against an adequate
premium payment.

6. Machinery Insurance
This insurance coverage gives you protection for all essential machinery on-board.
The insurance company will compensate for any operational damage to the ship.
However, it will require a survey and approval from the surveyor.

7. P&I Insurance
P&I stands for Protection and Indemnity Insurance, provided by P&I club. This club
is a shipowners’ mutual insurance coverage service to focus on the damages or
losses to third-party goods that other standard marine insurance policies may not
cover.