For a marine business, the insurance coverage will be taken against losses incidental to marine adventure. Here marine adventure resembles the insurable property that is exposed to perils consequent to navigation in the sea. But the insurance against perils will be subjected to accidents or causalities of the sea, and does not include the ordinary action of the winds and waves pertaining to marine business. Generally there are five types of insurance policies needed to protect marine business. These include:
Cargo Insurance: This type of insurance policy covers the cargo or goods contained in the ship and the also personal belongings of the crew along with the passengers.
Freight Insurance: Freight insurance is taken to guard against the loss of freight. Under the terms of a business contract, the owner of goods is bound to pay freight when the goods are safely delivered at the port of destination. If the goods are damaged or stolen, ship is lost on the way, then the marine company loses the freight.
Liability Insurance: This type of insurance is common to every business where the insurer undertakes to reimburse against the loss which the insured business may suffer on account of liability to a third party which may be caused by the damage of ship or any other similar hazards.
Carriers Insurance: This type of insurance covers the transport operator for their contractual responsibilities when carrying goods in transit.
Ship or Boat Insurance: This type of insurance covers the loss against the damage of ship/boat or lost on the way to destination. Along with goods there are some persons who need to get insured. So for a business like marine business, it is to be insured well with right business insurance covers to enhance successful business operations.