Marine and Other Forms of Transportation Insurance

Boats and their cargo and passengers face many risks on unpredictable and powerful waterways. Marine insurance, one of the oldest forms of insurance, covers damage to and losses of boats, ships, marine workers, cargo, and passengers. Both businesses and individuals may purchase various forms of marine insurance.
Insurance for commercial ships or boats at sea, docked in a port, or on some inland waterways—as well as their cargo or passengers—is known as ocean marine insurance. There are four main types of ocean marine insurance:

(1) hull insurance
(2) cargo insurance
(3) freight insurance
(4) marine liability.

Hull insurance covers damage to a ship itself. Cargo insurance covers losses to a ship’s physical cargo. Freight insurance covers shippers against a loss of freight (payment for the transportation of cargo).

Marine liability covers damages to people and property from collisions and other incidents.

Businesses involved in transporting cargo or passengers by land or by air can purchase coverage similar to that of marine insurance. Insurance policies for commercial transport of cargo by land or air are commonly known as inland marine insurance. However, because of the increasing importance of the passenger airline industry, specialized property and casualty coverage, known as aviation insurance or aircraft insurance, has developed to cover aircraft and their cargo or passengers.