Know Risk is a community education program designed by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) to improve our understanding of insurance and how it relates to managing the many risks we all face in life.
Marine, pleasure craft and shipping insurance
Marine isn't all about boats.
Marine insurance can mean a lot of different things, depending on the risks you’re looking to insure against. As such, “marine insurance” is a bit of a catch-all term that can usually be subcategorised and then referred to as something a little more specific.
So, to help you make sense of the different types of insurances that fall under the “marine insurance” banner, let’s have a look at what each one is designed to cover. Bear in mind that different insurers may refer to each of the insurances listed below differently, but in general, insurers will tailor their policies to cover similar risks.
Commercial hull insurance is designed for businesses in which the use of a water vessel is actually at the centre of your business — for example, if you run charter boats or barges. Commercial hull insurance typically covers theft, malicious damage, ; liability arising from the use of the vessel and accidental damage to the insured vessels.
Although we’ve already discussed the idea of “marine insurance” being more of a collective term for different types of marine insurances, if an insurer sells only the one product and it’s actually called “marine insurance”, it’s more than likely a policy that closely resembles marine cargo insurance.
Marine cargo insurance is a policy designed for businesses. More specifically, marine cargo insurance is a policy type designed for businesses who transport their goods both domestically and internationally, be it by air, road, rail, sea, courier or post — that’s right, marine cargo insurance doesn’t just relate to transport via water bodies.
Marine cargo generally provides cover for damage to or loss of goods while they are in transit.
Pleasure craft insurance is for those people lucky enough to own their own water vessel — you know, like a nice yacht — for personal use and not for business purposes. Most pleasure craft insurance policies provide cover against theft and accidental damage, as well as some worst-case-scenario covers, such as wreck removal. Third party and personal injury covers are also typically included.
There is also a range of optional covers that will relate specifically to whatever your pleasure craft is usually used for — for example, you might be quite into sailing, fishing or water skiing.
Marine liability insurance provides cover for marine service providers — for example, ship repairers and marina operators. This particular cover insures against various types of liability, including but not limited to cargo damage, damage to other marine vessels and property, and third party injuries.
Home contents in transit
This is another marine insurance type whereby cover isn’t just limited to travel via sea. If you have employed removalists to transport the contents of your home, this type of insurance provides cover for loss or damage of your property while it is in transit (be it by road, train, air or sea), as well as while it is in storage (for a limited period of time).