What is ship insurance

Ship insurance is the term used when referring to marine insurance specifically catered to ships. It is essential that all ship owners obtain the necessary marine insurance to enable them to legally operate the vessel in line with the regulations of its registered flat state. It should be noted for a vessel must be registered in order to obtain insurance. When seeking the most appropriate ship insurance policy, it is advised that you enlist the professional services of a consultancy firm that specialize in assisting individuals obtain marine insurance.

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Importance of obtaining ship insurance

There are a number of varieties of ship insurance policies available to vessel owners, and it can be a time consuming and complex process trying to differentiate which policy would suit your maritime needs best. By enlisting the assistance of a professional consultancy firm, you can obtain guidance on the most credible insurance brokers, and optimum policies that meet both your personal, maritime and financial objectives.

Ship insurance is obligatory to obtain as it safeguards the vessel and operator against liability in situations such as damage or loss of cargo, injury to passengers on board, or destruction to the vessel. Typically, vessel owners obtain insurance to protect the ships contents from harm and risk when navigating international waters, and as a result of the numerous perils at sea, it is advised that the most comprehensive insurance policy is sought.

Ship owners need to recognize the importance of getting the most suitable insurance cover for their vessel, which will not only allow them to operate the vessel as intended, but will also remain within their financial boundaries and meet personal objectives. There are many reasons why obtaining the correct ship insurance is highly advantageous to the vessel owner, not only can limited liability be obtained, but protection can be sought in the following areas;

–          Cargo liabilities

–          Compensation for injury or death to seamen

–          Compensation for injury or death to passengers onboard

–          Protection against collision and other external damages to the vessel

–          Accidents, such as sinking or collision

–          Protection against risk of pollution

–          Legal costs

–          Theft or hijacking of the ship

–          Theft or hijacking of cargo onboard the ship

Almost all standard marine insurance policies will protect the vessel and its contents from the point of origin to the final point of destination of the journey. By having a comprehensive policy in place, you can effectively limited your liability against a number of occurrences, such as; natural disasters, external damage, passenger or employee injury, passenger or employee death, loss or damage to cargo, and engineering issues, to name a few.

There are many different insurance brokers and policies on offer to ship owners today, and so it is imperative that you research the exact type of policy you require and find a reputable insurance broker to provide you the policy. It is important to ensure the insurance fees and payments are in line with your overall budget, and the policy enables the vessel to operate as intended, before agreeing to any terms and conditions.