What is Marine Insurance?
Just as car insurance is necessary to adequately protect your automobile, marine insurance is required to protect your boat, cargo, and terminals. You will want the best coverage at the best price. Sounds simple; however, due to the inherent complexities of both maritime laws and insurance policies, you may run into complications involving marine insurance.
Features of Marine Insurance
Don’t pick and choose your marine insurance based on costs or a whim. By considering a few basic aspects of what you may or may not need, you can start to figure out the plan that works for you.
- Vessel history: Not only will you need to know what sort of vessel you own, you should also access a record of its full history. A past of mechanical failures or squeaky-clean performance throughout the years could dramatically affect your insurance policy.
- Purpose of the ship: A boat that is solely used for entertainment and pleasure cruises will require insurance coverage notably different from that of a vessel that carries cargo. A proper marine insurance policy will cover the cost of your cargo, to some extent, in the event of a disaster.
- Storage: If you dock your ship in a marina or port, you may already have some coverage provided by the organization that owns the space. Consult with them to see if they provide some sort of restitution for damage your boat incurs while kept on their property.
- Destinations: Where has your ship gone and where is going to go? Always ask yourself this question before purchasing marine insurance to ensure you are covered in the seas you intend to sail.
- Necessity: When you rely on your ship for your livelihood, you certainly can’t be without it for too long. Certain marine insurance policies allow expedient “boat rental”, much like a rental car, in the event of your own ship becoming out of commission.
- Subrogation: In the event of a calamity at sea that leads to your injury, a marine insurance provider may step in and assume your rights in order to sue the liable parties on your behalf. Only certain policies will include a subrogation clause and it is not necessarily something you will always want.
What is the Importance of Marine Insurance?
It cannot be stressed enough that you need to find the right insurance for your situation. Otherwise, you could be paying thousands a year needlessly, or be shorted just as much when you need the coverage after an accident or failure. To make sense of your options and feel confident in your marine insurance decision, the wise choice is to consult with a Miami maritime attorney from Michael C. Black, P.A. With more than 50 years of combined experience handling and focusing on maritime law and marine insurance disputes, you can rely on Attorney Michael Black for excellent legal counsel. Contact us today!