Our Marine Insurance Comparison Tool allows you to pick the policy that's right for you by comparing every plan offered by Canada's leading insurance providers. If you have questions, our Frequently Asked Questions can help you learn more about the product, and what sort of coverage you should be looking for.
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Frequently Asked Questions(click to expand)
What Is Marine Insurance?
Marine insurance is designed to protect seagoing vessels and their cargo from any loss or damage incurred during the course of a journey, such as collision, piracy, stranding or battery.
Transporting goods across water comes with its own set of unique risks. Marine insurance provides coverage for the unique risks which have the potential to harm the cargo and the vessel, as well as other incidents and attributes which could cause a huge financial loss for the transporter and the shipping corporation.
Marine insurance can be divided up into two areas: Ocean Marine or Marine Transit Insurance – which covers transportation through oceans and waterways – and Hull Insurance, which covers the building, maintaining or operating of water-going vessels, ships, submarines, and so forth.Another type of Marine insurance, Inland Marine, is also available, however that is specifically for the transportation of goods across land and inland waterways.
Who Is Marine Insurance For?
Marine insurance is generally for transporters and corporations who wish to ship goods.
Those concerned with the transportation of goods include:
- international importers and exporters
- traders within the country
- transfer of belongings from one place to another (either business or individual)
- financiers of any of the above
- boat brokers
Those concerned with the building and maintenance of seagoing vessels include:
- port authorities
- port operators
- ship owners/financiers
What Does Marine Insurance Cover?
The transportation of cargo over water can be risky as the vessel is not only at the mercy of the ocean but also the mechanics and condition of the boat itself. Not only do the goods have to be kept safe and secure but the vessel transporting it also needs to be in working condition and able to battle the elements. Risk areas that are covered by Marine insurance include:
- Cargo: coverage for the transported goods in case of loss, theft or damage during loading and transit
- Freight: coverage for the owner of the vessel in the event that the cargo is damaged or lost
- Hull and machinery: any physical or third party damage to any part of the vessel, fixed machinery or propulsion equipment caused by incidents such as a collision or mooring
- Protection and indemnity: bodily Injury coverage to the crew, passengers or others while aboard the vessel as well as coverage for liability arising from vessel operations
What Are The Different Types Of Marine Insurance?
- Voyage policy (insurance for a specific journey)
- time policy (insurance for a specific period of time)
- Valued policy (insuring up to a certain value)
- Open or unvalued policy (insured value determined at the time of actual loss)
- Mixed policy (combination of voyage and time policies)
- Floating policy (insurance for several shipments)
- Wager or honor policy (insurance without the assured having any insurable interest)
- Fleet policy (insurance for multiple vessels with one owner)
- Block policy (insurance covering all the risks of rail, road, and sea transport)
- Port policy (insurance for a ship whilst it is in port during a specified period)
- Single vessel policy (insurance for a single vessel)
- Named or specific policy (insurance policy containing the name of the ship by which the shipment is made and the policy covers risk of that particular ship)
- Port risk policy (insurance for when a ship is anchored in a port)
- Currency policy (insurance issued in a foreign currency)
- Blanket policy (insurance covering maximum protection)
What Is Not Included In Marine Insurance?
While Marine insurance policies are designed to protect the value of goods in transport and their hosting vessels against sea perils, loss and damage, there are certain conditions for the insurance policy to be valid. Exclusions from most Marine insurance policies include:
- Criminal or dishonest acts by crew or employees
- Damage to cargo caused by defective packaging
- Insolvency of the carrier
- Vessels not deemed seaworthy
- Intentional damage
- Certain types of cargo (some insurance policies exclude perishable items on certain journeys)
How Much Does Marine Insurance Cost?
The cost of Marine insurance is usually determined by the following:
- Value of the cargo
- Value of the freight and other associated costs
- Claims history of the insured
- Type of vessel
- Circumstances of the transit risks involved