Marine Insurance covers the loss or damage of vessels, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination.

Most vessel owners carry Hull Insurance to cover damages to the actual structure of their vessel. Protection against claims by third parties is attained through “Protection and Indemnity” insurance. Cargo is usually insured against the perils of the sea (i.e. storms, waves and all other actions caused by wind and water).

If a vessel owner or cargo owner wishes to be protected against losses incurred from war, the owner must purchase separate war-risk insurance or pay an additional premium to include war risk in their basic policy.

Typically, marine insurance is split between the vessels and the cargo. Insurance of the vessels is generally known as “Hull and Machinery” (H&M). A more restricted form of coverage is “Total Loss Only” (TLO), generally used as a reinsurance, which only covers the total loss of the vessel and not any partial loss.