Types of Marine Insurance Policies
In addition to the main types of marine insurance such as hull, cargo, freight, liability, P&I, and war risk insurance. The followings are the different nine types of marine insurance policies.
Floating Policy
Imagine you’re a big company that exports goods to different countries. Instead of getting insurance for each shipment separately, you can choose something called an “open policy.”
It’s like a special insurance plan that covers all your shipments for a whole year. Every month, you just need to tell the insurance company about the shipments you made, like what you sent, how you sent it, and where it went. This way, you save time and effort while still keeping your exports protected.
Voyage Policy
Let’s say you’re an exporter sending different shipments abroad. One option is to get insurance for each shipment separately, kind of like buying a ticket for every journey you take.
The downside is that it takes extra time and effort to arrange insurance every single time. But with an open policy, it’s like having a magic cloak of insurance that automatically covers all your shipments.
You don’t have to worry about buying separate tickets anymore with the voyage policy, making your exporting adventures much easier and smoother.
Time Policy
Time policy is one of the important types of marine insurance policies. In the world of marine insurance, there’s a special kind of policy called a “time policy.” It’s like having a safety net that lasts for a specific period, let’s say a year.
During that time, all your shipments are automatically covered by insurance without you having to worry about it. It’s like having a guardian angel by your side, protecting your goods as they travel across the seas.
Also Read: The 2 Concepts of Insurance: Functional and Contractual Concept
Mixed Policy
Imagine you’re a shipping wizard who sends out different types of goods on various journeys. In marine insurance, there’s a magical policy called a “mixed policy.”
It’s like a versatile option that covers all your shipments, regardless of their size, shape, or method of transportation. It’s a flexible shield that adapts to protect your treasures, no matter where they go or how they get there.
Named Policy
When it comes to marine insurance, a “named policy” is like having a special bodyguard for each of your shipments. You get to pick and choose which shipments you want to insure, and you give each one its own personal protector.
It’s like a VIP treatment for your most valuable goods, giving you peace of mind knowing that they’re well-protected while they travel across the seas.
Also Read: The 7 Principles of Insurance
Port Risk policy
In marine insurance, there’s a special type of policy called a “port risk policy.” It’s like a special shield that protects your goods while they’re waiting to be loaded or unloaded at the port.
Think of it like a bodyguard that watches over your shipments while they’re in a vulnerable state. It’s a smart way to safeguard your goods, even during the most unpredictable parts of their journey.
Single Vessel policy
In marine insurance, a “single vessel policy” is like a superhero that comes to the rescue for a specific journey. It’s a special kind of policy that covers a single shipment on a single vessel, providing protection from the moment the goods are loaded onto the ship until they reach their final destination.
It’s like having a personal guardian that ensures the safety of your valuable goods throughout their journey.
Fleet Policy
In marine insurance, a “fleet policy” is like a powerful spell that protects all your ships at once. It’s a special kind of policy that covers all the vessels in your fleet under a single umbrella, regardless of where they’re going or what they’re carrying.
It’s a smart way to manage risk for all your maritime adventures, giving you peace of mind knowing that all your ships are safeguarded against the unexpected.
Blanket Policy
In the list of our 9 types of marine insurance policies, the blanket policy is the last.
Imagine you’re a busy exporter with a never-ending stream of shipments. In marine insurance, a “blanket policy” is like a magical cloak that covers all your shipments at once.
It’s a super-convenient option where you don’t have to worry about insuring each individual shipment separately. This enchanting policy wraps all your goods in a protective embrace, keeping them safe as they voyage across the seas.