Know these 4 Common Exclusions of Marine Insurance

Know these 4 Common Exclusions of Marine Insurance

Are you in a business of import-export or transporting goods via ships? If yes, do thoughts of natural disasters such as storms, tsunamis, and other mishaps such as piracy haunt you? Buying a good marine insurance policy will protect your goods, and ensure your business operates without any hassles. It will provide necessary coverage to minimize your losses.

However, a marine insurance policy does not cover all possible scenarios. Here is a list of marine insurance exclusions that you should be aware of:

Misconduct Caused Willingly 

Any damage or loss caused intentionally to goods is excluded from coverage. This includes:

Intentional wrongdoing

Conduct exhibiting reckless indifference to a known, or foreseeable risk
Willful misconduct means intentional disregard where you know or should have known that your actions might result in harmful consequences, but you go ahead any how. You can’t ask for marine insurance claims in such a situation. If, after proper investigation, you are found not guilty, you will get the claims as per the policy terms.

Loss Due To Delay in Goods Delivery

If you are in the import-export or transportation business, a small delay in the shipment of cargo to the destination can cause major damage to the goods in transit. For instance, if there are perishable items in transit, they can deteriorate and lose some or all of their value. The market value of cargo might change within days or weeks, because of which you may consequentially suffer losses due to delay. Unless your policy says, claims for delay are excluded.
Marine insurance will not provide coverage in case the loss is caused because of the delay in delivering the goods on time.

Ordinary Wear And Tear

The primary purpose of marine insurance is to protect you against contingencies and fortuitous events. It is not intended to cover injuries or losses which occur in the ordinary course of things.
For instance, assume that your barge sinks in the sea and causes immense damage to the goods in transit. If the reason for sinking is the deteriorated hull of the ship and not any natural cause like a peril of the sea, then your marine insurance provider may not cover this event. Similarly, any damage caused by a power loss or strike or riot will also not be covered under this policy.

Improper Packaging

Your marine insurance provider is not bound to cover you against mishaps caused by improper packaging. You can’t ask for coverage for damage caused because the chosen packaging material was not good enough to protect the goods.
In a maritime context, exclusions may arise in respect of the way the cargo is shipped or packaged. You can’t get coverage if you packed ice cream in a non-refrigerated locker and it melted, and the main essence of your product was lost.

The Bottom Line

The main idea of drawing awareness to these exclusions is that a marine insurance policy won’t cover misconduct or mishandling caused voluntarily or ordinary wear and tear.
What is more important is the choice of the right marine insurance policy related to your business. It is important to research the policies offered by different insurance providers to make the best selection. Reputable insurance brokers such as SecureNow can help you by providing features and quotes from various insurance providers at one place.

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