Marine Cargo and Marine Hull Insurance: What They Are and Why You Need Them

Marine Cargo and Marine Hull Insurance: Why You Need Them

If you are involved in the maritime industry, you know how important it is to protect your assets and interests from the perils of the sea. Whether you own a vessel, a cargo, or both, you need to have adequate insurance coverage to safeguard your investment and avoid financial losses in case of accidents, damages, or theft.

But what exactly are marine cargo and marine hull insurance, and why do you need them? In this article, we will explain the basics of these two types of insurance and the risks of not having them.

What is Marine Cargo Insurance?

Marine cargo insurance is a type of insurance that covers the goods, cargoes, or merchandise that are transported by land, sea, or air from the point of origin to the final destination. It protects the owner or the consignee of the cargo from the loss or damage caused by various risks, such as heavy weather, fire, lightning, explosion, grounding, stranding, collision, machinery damage, ranging, piracy, barratry, sue, and labor.

Marine cargo insurance can be obtained either through an open policy or an individual or voyage policy. An open policy provides automatic coverage for all shipments of the insured, who is obligated to declare all shipments. An individual or voyage policy covers only one shipment at one time per voyage. The insured must declare the policy prior to shipment.

What is Marine Hull Insurance?

Marine hull insurance is a type of insurance that covers the vessel or ship and everything connected to it, primarily its hull and machinery. It protects the owner or the operator of the vessel from the loss or damage caused by the same risks as marine cargo insurance, as well as additional risks, such as total loss, salvage, and salvage charges.

Marine hull insurance covers various types of vessels, such as passenger ships, tankers, bulk carriers, container ships, reefers, lighters, tugs, and motorized bancas. The coverage of marine hull insurance can vary depending on the clauses and conditions of the policy, such as time clauses, port risks clause, and hull full conditions.

What are the Risks of Not Having Marine Cargo and Marine Hull Insurance?

The maritime industry is exposed to many uncertainties and hazards that can result in significant losses for the owners and operators of vessels and cargoes. Without proper insurance coverage, they may face the following risks:

Financial loss: The loss or damage of a vessel or a cargo can entail a huge financial loss for the owner or the operator, especially if the value of the asset is high or the cargo is perishable or sensitive. Without insurance, they will have to bear the full cost of repairing or replacing the asset, as well as the loss of income or profit.
Legal liability: The owner or the operator of a vessel or a cargo may also be held liable for the loss or damage caused to third parties, such as other vessels, cargoes, properties, or persons. Without insurance, they will have to pay for the compensation or damages claimed by the third parties, as well as the legal fees and expenses.
Reputation damage: The loss or damage of a vessel or a cargo can also damage the reputation and credibility of the owner or the operator, especially if they fail to deliver the goods or services to their customers or clients. Without insurance, they may lose the trust and confidence of their business partners and stakeholders, as well as the public.

How to Get Marine Cargo and Marine Hull Insurance in the Philippines?

If you are looking for marine cargo and marine hull insurance in the Philippines, you can contact Bethel General Insurance and Surety Corporation

Bethel offers competitive rates and comprehensive coverage for marine cargo and marine hull insurance, as well as other general insurance products. You can visit their website here for more information on how to apply and the requirements.

Marine cargo and marine hull insurance are essential for the protection and security of your maritime assets and interests. Don’t risk losing them to the perils of the sea. Get insured today and enjoy the peace of mind that comes with it.

Source:

https://www.gsis.gov.ph/general-insurance/products/marine-hull-and-cargo/

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