As a business owner in the marine industry, it’s essential to have the right insurance coverage to protect your assets and your bottom line. However, with so many different types of marine insurance available, it can be challenging to know which coverage is right for your business. In this blog post, we’ll provide a detailed breakdown of the different types of marine insurance and their coverage.

Direct Marine Insurance
Direct marine insurance refers to the insurance coverage for marine vessels, cargo, and related risks. This type of insurance provides coverage for physical damage to vessels, including damage caused by fire, collision, or weather-related events. It also covers cargo damage and loss, and provides protection against liabilities related to pollution, wreck removal, and crew claims.

Hull & Machinery (H&M)
Hull & Machinery (H&M) insurance provides coverage for physical damage to vessels, including machinery, equipment, and fittings. This type of insurance also covers damage caused by collisions, weather-related events, and other perils. H&M insurance typically includes coverage for salvage costs, wreck removal, and collision liability.

Protection & Indemnity (P&I)
Protection & Indemnity (P&I) insurance provides coverage for a wide range of liabilities that vessel owners and operators face. This includes liability for cargo damage, pollution, crew claims, and other third-party liabilities. P&I insurance also covers legal costs and expenses related to defending against claims.

Blue Cards and CLC
Blue Cards and the Civil Liability Convention (CLC) are important documents that provide coverage for pollution damage caused by oil spills or other hazardous substances. Blue Cards are internationally recognized certificates that verify a vessel’s insurance coverage for pollution damage, while the CLC is an international treaty that sets out the maximum compensation that can be paid for pollution damage caused by tankers.

FD&D
Freight, Demurrage & Defense (FD&D) insurance provides coverage for legal expenses related to disputes that arise from shipping contracts. This includes disputes related to freight payments, demurrage, and defense against claims.

Loss of Hire
Loss of Hire insurance provides coverage for loss of income that results from damage to a vessel. This includes coverage for the loss of hire fees that a vessel would have earned if it had not been damaged.

Builders Risks
Builders Risks insurance provides coverage for the risks that arise during the construction of a vessel. This includes coverage for damage to the vessel during construction, as well as coverage for liabilities related to third-party claims.

In conclusion, understanding the different types of marine insurance is crucial for businesses in the maritime industry. Each type of insurance provides coverage for specific risks and liabilities, and it’s essential to choose the right coverage to protect your assets and mitigate risks. At GMCG, we offer personalized marine insurance services that are tailored to meet the specific needs of your business. Contact us today to learn more about our marine insurance services and how we can help you protect your business.