Marine insurance reimburses financial losses due to damage to a ship and any accompanying property, including cargo, from the port of departure to the port of destination. Specialty marine insurance policies available include marine cargo insurance, commercial marine insurance, and personal watercraft insurance.
One type of marine insurance is individual boat insurance which is intended for the insurance of vessels for non-commercial use. Individual boat insurance is similar to auto insurance. Like auto insurance, individual boat insurance policies can not only cover property losses, but also offer individual protection and liability coverage for boats.
Liability coverage can cover bodily injuries to the occupants of the boat, along with other people who are involved in any accident. Additional medical coverage is generally available in a separate additional policy. Uninsured Boater Coverage is also available to cover any damage caused by vessels that hit and run, or by vessels without insurance coverage.
There is also the option of towing and salvage insurance. It can help with smaller incidents such as engine failure, mechanical breakdown, or even delivering fuel to a stranded ship. Towing and salvage insurance can also help offset the high costs associated with a heavily damaged vessel.
Agreed Value or Actual Cash Value forms are what are typically offered for hull coverage on a standard watercraft. Because for insurance, you rely on cash value policies to determine if as the boat ages, its value will depreciate. Some insurance companies continue to pay the full amount without relying on depreciation value.
Similarly, marine insurance can cover any and all risks, or only the risks and perils specified in the policy. No matter the type of policy, it is very important to fully understand all of the provisions that can render the policy null and void. For example, many policies specify browsing limits that override the policy if exceeded. Depending on the area, accidentally exceeding the navigation limits can be very easy on the water where the limits are not well marked.
Personal watercraft insurance is available for virtually all vessels, from small recreational boats and fishing boats, to large yachts and houseboats. Specialized coverage may include coverage for boat rentals, fishing excursions, and other charter boat trips. With a wide selection of insurance companies and options available, finding the right coverage for your trade and situation simply requires a little research.
