10 Potential Risks Covered by Ocean Marine Insurance
Ocean marine insurance is insurance used to protect cargo, vessels, and other items while they are being transported across the ocean. We’ll work with you to design coverage the provides real protection when you’re in open waters. Here are 10 potential risks covered by ocean marine insurance:
1. Commercial Property Coverage
Risk Factor
When a fire, theft, or another type of disaster strikes, your commercial property and everything within it can suffer a significant loss. This can have a detrimental effect on your business.
Solution
Commercial property insurance can help protect the property your business owns and leases, including things like equipment, inventory, furniture, and fixtures. Whether you own your building or lease your workspace, commercial property insurance can be purchased separately or can be combined with other necessary coverages to protect your business’ physical assets.
2. United States Longshore and Harbor Workers’ Compensation Act (LHWCA)
Risk Factor
Non-crew members could be injured or killed on the job, but if that happens while working on navigable waters in the US, including any adjoining pier, wharf, dry dock, terminal, building-way, marine railway, or other adjoining areas customarily used by an employer in loading, unloading, repairing, dismantling, or building a vessel, they won’t be covered under traditional workers’ compensation.
Solution
Employers can purchase LHWCA coverage to provide compensation to workers who are injured on the job in scenarios ordinarily excluded under workers’ compensation. This includes coverage for divers, repair personnel, and equipment suppliers.
3. General Liability
Risk Factor
Water on the floor, slippery entry in the winter, broken glass, and hazardous debris. These are all accidents waiting to happen, and can make your business susceptible to claims due to bodily injury, property damage, personal injury, and other related risks.
Solution
General liability insurance is an absolute necessity for any business. It provides broad coverage when you are deemed responsible and liable, and will also pay to defend any covered lawsuit or action, regardless of its merit.
4. Business or Commercial Auto
Risk Factor
You may have exposures associated with your business vehicles – owned or leased. With a fleet of cars, trucks, vans, or other types of vehicles used in the course of business, a single accident can potentially put your business in financial jeopardy.
Solution
Business auto insurance provides coverage for vehicles owner or leased by a contractor and provides coverage for bodily injury, property damage, and other exposures, and could include comprehensive and collision coverage as well.
5. Equipment and Building Materials
Risk Factor
Your business’ equipment is exposed to potential loss due to damage or theft. Without the specialized equipment your organization needs, operations may have to come to a halt. Similarly, if your building materials are damaged or stolen, your job may be put on hold.
Solution
Insurance coverage for your specialized business equipment, tools, and building materials is a must. The policy will cover equipment and materials for a variety of losses, including fire, explosion, vandalism, theft, collision with other equipment or objects, and overturning.
6. Workers’ Compensation
Risk Factor
If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper insurance coverage in place.
Solution
Maintain workers’ compensation insurance to provide benefits to eligible employees. Otherwise, you can be penalized for every day that coverage is not maintained, as well as for any benefits an employee would have been eligible for in the event of a job-related injury or sickness.
7. Pollution
Risk Factor
Pollution and environmental contamination is an increasing risk that can occur due to improper storage and use of chemicals, run-off, fuel leaks, and other situations. Pollutant cleanup is generally excluded from basic insurance policies. Leaking from an aboveground or underground fuel tank, for example, can be very costly to remediate.
Solution
It is difficult to control pollution risks, but not impossible. You can protect yourself from this type of risk by obtaining environmental insurance that provides coverage for both bodily injury and property damage caused by a pollution incident. This type of insurance can provide coverage for clean up costs and third party lawsuits that result from contamination.
8. Jones Act
Risk Factor
The Jones Act is a federal law that mandates compensation to crew members who are injured as a result of negligence while on the job. Standard workers’ compensation insurance does not provide coverage for crew members, and a separate statue, The Harbor Workers Compensation Act, provides coverage for non-crew members.
Solution
Any organization that has crew members among their employees should be sure to have Jones Act coverage added to their policy. This coverage is not automatically added to most boat insurance policies, increasing the risk of exposure to large liability claims.
9. Marine Cargo Insurance
Risk Factor
The cargo being carried by your ship can be damaged or lost due to an accident or delays during transport and unloading. Cargo can also be damaged on the way to the port, ship, or other forms of transport, such as rail and truck.
Solution
Marine cargo insurance offers protection against loss or damage to cargo in a variety of circumstances. This coverage is often required by contract. There are many different types of marine cargo policies depending on the circumstances and items in transit.
10. Commercial Umbrella
Risk Factor
What happens when your business faces a large liability loss that exceeds the basic limit of your standard policy?
Solution
A commercial umbrella policy provides high limits of insurance, typically between $2,000,000 and $10,000,000. Coverage is extended over your general liability insurance, workers’ compensation, business auto, as well as directors and officers liability coverage. It provides a great safety net and helps ensure your business is well protected.
Get Coverage Today!
The Satanoff Agency, located in Wayne, PA, is an independent insurance agency based in 41 states across the United States, working to supply our customers with quality assistance and insurance. Our independent agents offer their services to help you as the customer get the unique coverage you need.
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