Marine Transit Insurance
What is Marine Transit Insurance?
If your business takes you across the seas, you can be exposed to risks from mother nature, misadventure and even piracy.
Such risks can prevent your commercial vessel, cargo or truck from reaching its destination, or cause costly damage during the voyage.
Marine insurance refers a range of insurance products which help protect your business from loss or damage to vessels and cargo. It can cover the door to door delivery of good worldwide, by sea, road, rail and air – including their storage on the way.
Who should consider it?
Marine transit insurance is important for business involved in shipping or receiving goods, operating watercraft commercially, repairing vessels, running a marina and more.
Marine insurance can provide valuable cover on both land and sea for:
- Importers and exporters
- Marina owners
- Mining companies
- Tourism operators
Did you know?
99% of Australian exports use sea transport
(Department of Infrastructure, Regional Development and Cities, Maritime, 2018)
1597 million tonnes of cargo is moved across Australian wharves in 2015-16.
(Department of Infrastructure, Regional Development and Cities, Statistical report. Australian sea freight 2015-16, 2018)
The value of Australia's exports by sea was $218.9 billion in 2015-16
(Department of Infrastructure, Regional Development and Cities. Statistical report. Australian sea freight 2015-16, 2018)
What can it cover?
There are different types of marine-related insurance policies – the type you choose will vary based on your specific needs. Depending on the type of policy you choose, marine insurance policies can cover.
|TYPE OF COVER||POTENTIAL BENEFITS|
|Accidental Damage||Physical damage that occurs as a result of an unexpected and non-deliberate external action|
|Insured Events||Only the events nominated by the insurer. These are commonly known as fire, collision and/or overturning covers, although there are normally more events offered than these|
|Collision||Damage caused due to the collision of the carrying vehicle, vessel, train, aeroplane. It may be a collision between two conveyances or it might involve the conveyance hitting another object such as a bridge, wall, tree etc.|
|Dropping during loading and unloading||Dropping during loading or unloading if this is not an excluded event specific under a Specific Risks Policy|
|Fire, Explosion, Lightning||While fire is a common event covered by all transit policies, cover for explosion and lighting may or may not be granted.|
|Impact of Goods with External Objects other than the Conveying Vehicle or Road||Full impact cover can be provided, including goods falling from and within the vehicle|
|Malicious Damage||Malicious acts, vandalism and sabotage by third parties|
What usually isn’t covered?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. Policies generally won’t include cover for:
- Consequential Loss/Loss of Market
This information is provided to assist you in understanding the terms, implications and common considerations in marine transit insurance, It does not constitute advice, and is not complete, so please discuss the full details with Dunbar Insurance.