Shipping Insurance is a service rendered by an insurance company of the sender of the goods on-board who is the insured for goods or parcel that on event of theft, lost or damaged in course of transit a reimbursement maybe issued.Apparently, goods are insured while being stored and while in transit, until they reach the buyer.Insurance could be sold by postal services, shipping-insurance companies and courier companies especially in both United States and Canada.

Alternatively, shipping insurance are often  referred to as Marine Insurance.Marine insurance also covers the shipping vessels too.Cargo Insurance/ is a type of property coverage called marine insurance. Freight insurance covers shipped goods when they’re transported via land, sea, or air.Both are similar to shipping insurance.

Eligibility for Shipping, Marine and Cargo/freight insurance  To be eligible for cover over any of these insurance types listed above, one must fall under these categories below.Natural disaster Vehicle accidents Acts of war Piracy Cargo abandonment Customs rejection A shipper doesn't need a carrier liability insurance instead it is the obligation of the carrier company to insured that the liability of the ship is insured.Cargo and freight shipping can be conducted on three main modes of transport, namely; sea transport land transport and air transport Sea transports supports ships, land transport supports truck and railways while air transports makes use of cargo airlines.

Types of Marine insurance Hull Insurance: Hull insurance mainly caters to the torso and hull of the vessel along with all the articles and pieces of furniture on the ship.This type of marine insurance is mostly taken out by the owner of the ship to avoid any loss to the vessel in case of any mishaps occurring.Machinery Insurance: All the essential machinery are covered under this insurance and in case of any operational damages, claims can be compensated (post survey and approval by the surveyor).

The above two insurances also come as one under Hull & Machinery (H&M) Insurance.Protection & Indemnity (P&I) Insurance: This insurance is provided by the P&I club, which is ship owners mutual insurance covering the liabilities to the third party and risks which are not covered elsewhere in standard H & M and other policies.Protection: Risks which are connected with ownership of the vessel.

E.g.Crew related claims.Indemnity: Risks which are related to the hiring of the ship.

E.g.Cargo-related claims.Liability Insurance: Liability insurance is that type of marine insurance where compensation is sought to be provided to any liability occurring on account of a ship crashing or colliding and on account of any other induced attacks.

Freight, Demurrage and Defense (FD&D) Insurance: Often referred to as “FD&D” or simply “Defense,” this insurance provides claims for handling assistance and legal costs for a wide range of disputes which are not covered under H&M or P&I insurance.Freight Insurance: Freight insurance offers and provides protection to merchant vessels’ corporations which stand a chance of losing money in the form of freight in case the cargo is lost due to the ship meeting with an accident.This type of marine insurance solves the problem of companies losing money because of a few unprecedented events and accidents occurring.

Marine Cargo Insurance: Cargo insurance caters specifically to the marine cargo carried by ship and also pertains to the belongings of a ship’s voyages.It protects the cargo owner against damage or loss of cargo due to ship accident or due to delay in the voyage or unloading.Marine cargo insurance has third-party liability covering the damage to the port, ship or other transport forms (rail or truck) resulted from the dangerous cargo carried by them.

Comprehensive list of marine insurance policy I would only list out the summary list of the policy a marine has and provide a link for thorough explanation.Voyage policy Time policy Mixed policy Open or Undervalued policy Value policy Port risk policy Wage policy Floating policy Named policy and Blocked policy Each and everyone of the listed marine policy can be explained in this article.You might want to know reasons why shipping insurance is considered.

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