What is Marine Liability Insurance: Understanding Types, Coverage & Benefits

The unpredictability of the sea in marine business can lead to injury and losses to the various entities involved in the business. To combat such situations and compensate the parties for losses, the concept of marine insurance came into being. Marine liability insurance is a marine insurance type that holds a significant place in the marine business world.

Read on to learn the meaning, types, coverage and benefits of marine liability insurance.

What is Marine Liability Insurance?

Marine liability insurance is a type of marine insurance under which the insured gets coverage against third-party liabilities. It covers the losses that third parties may suffer, including loss of property, damage to goods, injury to crew members, etc.

With marine liability insurance, the policyholder is saved from spending huge sums on paying the third parties for their losses. It ensures that all the entities involved in the marine business do not suffer a loss of rights and receive adequate compensation for the losses.

Types/Coverage of Marine Liability Insurance

Marine liability insurance covers various types of liabilities of the insured, ensuring that he does not have to incur heavy expenses while compensating third parties. Here is the scope of liability insurance.

  • Cargo Loss or Liability- Under cargo insurance liability, the damage or loss to cargo is covered. It includes loss of cargo due to theft, accidental damage, storms, piracy attacks and so on while it is being transported.
  • Personal Injury Liability- Marine liability insurance also covers the claims of death or injuries suffered by the crew members or any other individuals on board. It covers the medical and legal expenses that an insured must pay to settle third-party claims.
  • Third-Party Liability– Many times, the insured vessel may cause loss or damage to third-party ships, cargo or any other property. Such losses also fall under the scope of marine liability insurance.
  • Environmental Damage Liability- The insured individual may be liable for paying for environmental damage caused by the vessel. Marine liability insurance covers the cost of such damages on behalf of the policyholder.
  • Liability Towards Wreck Removal- In case of ship sinkage, the insured may be charged with expenses towards wreck removal and cleaning of the sea to reduce the environmental impact of the accident. Such charges may also be covered under a blanket of marine liability insurance.
  • Hull and Machinery Liability- It also provides for losses or damage to the machinery and equipment of the ship in case of a collision, overturning, sinkage, etc.
  • General Average Liability- In certain circumstances, the insured may have to do away with a portion of the cargo to safeguard the vessel. In such a case, the losses are shared in specific proportions by all the parties, which may also include the policyholder.

Unveiling the Benefits of Marine Liability Insurance

  • Financial Assistance- Marine liability insurance provides financial assistance to the insured by paying for the liability charges that may arise. It saves the insured from spending huge amounts of money on paying for the liabilities, ensuring his financial security.
  • Business Continuity- Marine liability insurance benefits the insured by providing financial protection, enabling them to continue their businesses without any financial crunch.
  • Wide Coverage- This insurance covers multiple liabilities, making it a comprehensive plan. From hull and machinery to cargo, personal injury, etc., you can get coverage against a host of events and liabilities.
  • Protection to Insured- The sea business is prone to many forms of dangers, which make it highly risky. However, marine liability insurance protects the insured from liabilities that may arise due to all types of dangers, including collision, piracy, fire, sinkage and many more.

TATA AIG Marine Liability Insurance: The Path to a Secure Marine Business

Marine liability insurance is a saviour for marine businessmen. The security that it provides to the policyholder in terms of third-party liabilities is unmatched.

Thus, opting for a marine liability policy is a must. However, care should be taken when choosing the insurance provider. One must look for a reputed insurance company with high credibility and a positive image for their marine insurance needs.

TATA AIG is one name you can trust for comprehensive and efficient marine insurance plans. They offer the best marine liability insurance with extensive coverage, affordable prices and a smooth and simple claim process.

Moreover, you can also customise the policy as per your business needs and get tailored coverage for the right amount of protection. Thus, you never have to worry about sudden financial expenses due to third-party losses and claims as TATA AIG marine liability insurance is here to rescue you.

The post What is Marine Liability Insurance: Understanding Types, Coverage & Benefits appeared first on Daily Excelsior.

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