Every type of business comes with risks, and many of them can destroy a company or put a serious dent in profits. However, there are ways of reducing the amount of exposure you have and protecting yourself from the worst impact. To prevent large losses, shipping companies and cargo transporters will need to take out maritime insurance, which covers a wide variety of different risks.

In addition to paying for damage to your ship and loss of your cargo, some policies will also cover a part of your profits, and you can get a payout if there is a liability issue. However, you’ll need to make sure that you followed all the regulations and were careful when packing your cargo, as problems caused by negligence aren’t usually covered. Let’s have a look at what insurance can do for you and where you can access it.

What Is Maritime Insurance?

Everyone who is transporting goods around the world will need to take out a special kind of insurance. There are a number of different plans available, and the various insurance companies will include different things in their policies. However, most will cover the damage caused to your ship and your cargowhen you encounter unexpected difficulties on your journey. A great policy will also pay out for the mark-up value and cover any liability issues you might face.

Damage to Your Ship

The vessel you use to transport goods is at the heart of what you do, so you should try to maximize the amount of protection it receives. Hull insurance will cover any physical damages to your ship, which might include a problem with the actual structure or with the internal machinery. As well as ships, it can also cover other types of vessels like oil rigs, tugboats, floating equipment, or barges.

Loss of Cargo

In addition to your ships or and other water-bound vessels, you’ll need coverage for the goods that are transported. Cargo insurance will cover any issues that arise with the items you are transporting from one place to another. Although it is mainly meant for physical damage, some policies will also pay out for theft. Make sure to read the fine print and double-check that you have chosen the right policy for your needs before you sign up.

Mark Up Value

The price you pay for your goods isn’t the one you’re hoping to get at the destination. There will be a mark-up, which is where you make your profit. While most policies simply cover the cost of the cargo you lost, so you end up where you started, some will actually pay for a part of this mark-up.

Whether this type of insurance is worth it for you depends on the type of business you run and how much risk you’re at. Policies that include mark-up value are usually more expensive, so you have to decide if this is a good idea for you.

Liability Insurance

Liability insurance is a special kind of coverage you might want to take out if your business is prone to accidents, you’re likely to face issues with your staff, or there is a chance that you will damage someone else’s property. It covers you for these kinds of incidents and can pay you compensation for high medical bills, the damage you caused to property, and even a loss of life that was caused by your operations.

What Could Cause Such Damage?

Now you know what kinds of risks are covered by insurance, you might wonder whether getting insurance is really worth it. How realistic is it that you’ll face these challenges, and how often do accidents actually happen? Unfortunately, the future isn’t predictable, so you don’t know whether your business will ever need to make a claim. Cargo usually arrives safely, but there are certain threats that can put your operations at risk.

One of the main issues is natural disasters. With climate change, these are becoming more and more common, which means that one of your vessels is likely to get caught up in one at some point. What’s more, there are still pirates out there intent on stealing your goods. In certain regions, there might be cross-border conflicts that could also affect the route and safety of your ships.

When Are You Not Covered?

So far, we’ve discussed all the ways you’re covered by insurance. There are a few instances that are excluded, no matter what policy you go with. If you don’t stick to the local and worldwide laws that govern maritime operations, you’re unlikely to be able to make a claim. Similarly, incidents that are caused by your negligence won’t be covered. For example, if you made a mistake while packing up your goods, you might not receive any compensation.

Many policies also exclude contamination that is caused by radioactive rays and civil commotions, riots, and strikes. However, you should always read your policy closely to find out exactly what is included and what isn’t.

Which Policy Do I Need?

As mentioned, there are a number of different maritime insurance policies available, and they are offered to you by many companies. Each one will be slightly different, so they could be a good fit for some businesses but a bad one for others. The best way to discover which policy you need is to speak to a professional in the field. An independent insurance agency can help you find something that is suitable and not overpriced.

Using an agent has many advantages. Not only will they help you to consider all the options, including some that you might have missed on your own, but they will also save you a lot of time. Because they work in insurance every day, they can give you quotes quickly. If you were to do the same on your own, it might take you many hours of research.

Finding a Great Policy

Before sending you relevant quotes, your insurance agent will speak to you to find out more about your situation and what your business does. They will speak to you about the size of your vessels, the type of cargo you transport, and the areas you operate in. What’s more, they will ask you about your own preferences and what risks you perceive in your business.

Then, they can start to find some insurance providers who might be a good fit. Together, you will go through the quotes and decide which one is the most advantageous for you. If you already have a policy, your agent can help you figure out whether it is optimized or whether there are areas of risk you haven’t considered.

Get the Coverage You Need

A great insurance agency can help you sort through the various companies and what they offer. They will work together with you to figure out which aspects are the most crucial and where you can get the maximum cover for the least amount of money. Call or message us now at iInsure to speak to one of our experts in this field. Darryl Stidham and his team will be more than happy to review your situation and provide you with relevant quotes.