People typically purchase marine insurance for their pleasure crafts, such as yachts and boats. Marine insurance covers any physical damages including collision, extraordinary storms, striking rocks or icebergs, vandalism, stranding, and fire. Marine insurance can also cover theft.   

What Does Marine Insurance Entail?

Marine insurance works almost the same as auto or home insurance. The insured agrees to render a premium payment and the insurer agrees to indemnify the insured in cases of loss or damage. The coverage is usually quite broad, covering not only the vessel, but also any boat trailers, outboards motors, and other related machinery or equipment.  

What Is Not Covered by Marine Insurance?

As in automobile and home insurance, marine insurance is not all-encompassing and has limits to what may be insured. The insurance coverage may not cover situations when the vessel:

  • Is used for commercial purposes or other non-pleasure endeavors
  • Is damaged or lost due to a war-related incident
  • Is damaged due to any normal wear and tear attributed to normal use
  • The ship deviates from its normal region or routes as stipulated in its agreement

What Other Concerns Should I Have about Marine Insurance?

Marine insurance involves other aspects to it that make it unique from insuring other property items. The concerns a boat owner should be aware of when he enters in a marine insurance contract:

  • Many pleasure marine vessel owners are insuring their ships with their auto or home insurers, which may not be familiar with all of the nuances of maritime and admiralty law.
  • Under admiralty law, the marine insurance contract must be done in good faith, meaning that no misrepresentation, fraud, or concealment of any facts regarding the vessel is allowed.
  • A policy can be voided for a breach of any of the warranties implied in law or under the contract, such as the implied warranty of seaworthiness.
  • The boat owner must have an insurable interest in the vessel at the time of loss to have a claim.

Do I Need an Experienced Attorney for My Marine Insurance Issue?

Insurance companies will occasionally deny a claim that they should have paid for. If this happens to you, you'll probably have to sue the insurance company for bad faith. If you are in a collision with someone else’s property, you may be sued. Having an experienced personal injury lawyer can help you with these problems and can make your life easier.