Marine Insurance

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A marine insurance policy plays an imperative role by covering you against various losses or damages which may arise due to different kinds of perils like-

  • Man-made calamities like theft, piracy, etc.
  • Natural calamities like earthquake, cyclone, lightning, etc.

In various cases, a marine insurance policy also covers expenses, like forwarding costs, reconditioning costs, survey fees, etc. Further, the policy also includes stranding or sinking ships.

By buying a marine insurance policy, it is feasible for cargo owners to limit the liability with regards to loss or damage of expensive goods as carried by ship. A comprehensive marine insurance ensures that vessel operatives are completely secured, and liability is minimum should any loss or damage happens to the cargo in transit.

Usually, people assume that marine insurance covers only sea transit. However, in reality, a marine insurance policy covers transit by air, water, courier, registered post, etc.; or a combination of any of them. Further, transportation of goods which can be covered under a marine insurance policy can be divided into the following categories-

  • Inland Transport
  • Import
  • Export

Not only, it is essential to buy a good marine insurance for a vessel; it also makes it useful to go for the apt insurance cover which can cover you for different types of risks. Usually, marine transportation entails risk which may not always be under the control of a vessel operator. For instance, you are transporting your goods via sea; you can safeguard yourself against various risks which may arise during transit.

A ship that transports goods usually travels a long distance, and therefore, there is always a high degree of risk involved. When you buy a marine insurance policy, it gives protection and security to your vessel operatives if the cargo gets damaged in transit. Therefore, it is necessary to have a marine insurance before transporting your goods.

Read more: What Is Subrogation in Marine Insurance?

As per the requirement, it is possible to extend marine insurance policy in order to cover a wide range of risks in the following industries:-

  • Electronics Industry
  • Fine Arts
  • Healthcare Industry
  • Pharmaceutical Industry
  • Consumer Goods Industry

Note, a marine insurance policy can be bought for industries other than what is mentioned above. Then, there are various kinds of marine insurance policies like cargo insurance, liability insurance, hull insurance, etc.; which you can choose as per your requirement. Once you purchase a marine insurance policy, it is feasible to customise it to suit your different business requirements.


From the last five years, K.N Apparel is exporting goods to buyers situated in different parts of the world. The company prefers to send all its goods via sea route. Last year, a huge consignment was sent to the party situated in Sri Lanka. Unfortunately, when the consignment was in transit, it started raining heavily, and it damaged a substantial part of the goods. When the consignment reached the destination, the buyer refused to take the delivery of goods as they got damaged in water.

Read more: What are the Five Principles of Marine Insurance?

The million-dollar loss made K.N Apparel think what they could have done to avoid such a loss.


The situation would have been different if K.N Apparel had purchased a marine insurance policy. The policy would have saved them from incurring heavy losses, and the insurer would have come forward to cover losses or damages which happened due to rainwater. As soon as the loss happened, K.N Apparel would have to inform the insurer which would have settled the claim after carefully reviewing all the policy documents.

Well, natural calamities like rain, earthquake, etc.; are beyond your control, one can take some steps to minimise losses.