5 reasons marine insurance is a must

Commercial marine insurance is a must for any business that operates on the water. It decreases your financial exposure and can keep your business afloat in the case of an incident.

Here are five ways marine insurance can protect you.

1. Your vessel

Obviously, one of the most important reasons to purchase a commercial marine insurance policy is to protect your own assets. You vessel costs thousands or even millions of dollars, and all types of things can come up when out on the water. There could be a storm, a fire, a collision, or all types of other possibilities that could damage or even destroy your boat. Losing your vessel could paralyze your business, so you want to make sure you have coverage in place to protect you from the worst.

2. Liability

Liability protection is a must for all businesses that operate on the water. Liability insurance will protect your business against any damage caused by you or your employees, including to other marine vessels or structures like docks. While there are legal liability minimums, it often makes sense to purchase additional protection. Without it, you could find yourself on the hook for large damages in the case of negligence.

3. Towing

If you operate a large vessel as part of your business, it is very important that you have coverage in the case of your vessel being stranded. If your vessel breaks down at sea, it could cost tens of thousands to bring it back into port.

4. Cargo

If your business uses a marine vessel to transport cargo, you need to make sure these goods are insured in the case of an accident or theft. In some cases, the value of the cargo could be worth more than your assets. Local and international laws differ, but either you or your client need to make sure that your cargo is protected.

5. Pollution

A lot of standard commercial marine policies limit or exclude pollution coverage, yet this can be a huge risk when you’re operating on the water. Fines can be huge, so you definitely want to make sure to limit your exposure, especially if you are transporting chemicals or other goods that could damage the environment. Whether you purchase a standalone policy or add this coverage to your basic policy, it is definitely something to consider. This insurance will provide coverage for items like spill response, clean up, damage mitigation, and cover any fines or penalties your business may face.

Every business will have different needs. To make sure you have the right protection in place, it’s best to go over these factors with your agent and tailor your policy specifically for your business.

At John B. Wright, we believe we have more experience in the maritime insurance field than any other company along the Eastern seaboard. Contact us to discuss how we can evaluate your unique requirements, and give you a menu of recommendations as soon as possible.