March 22, 2022 - Velos

What Is Marine Insurance? Everything You Need to Know

If you’re running a business at sea and are importing and exporting goods, then you are going to need to consider marine cargo insurance – or, at least, marine insurance coverage.

This type of cover helps to not only protect your business and your customers’ interests, but also any stock you may be carrying, too.

However, the world of marine insurance can get a little complex.

Keep reading, and we’ll let you in on what you need to know about different marine insurance policies – and what marine insurance covers.

What Does Marine Insurance Mean?

A marine insurance policy is one which covers any form of business or professional operation involved in freight or cargo at sea.

An insurance provider offering this type of cover to ship owners will protect both vessels and cargo alike – meaning that you are effectively covered in the event of any loss or damage.

As you may imagine, the risk of either may end up costing you, any customers and professional partners dearly in the long run.

However, there are different types of marine insurance – there are policies that generally cover your goods, and others that focus on liability insurance.

Crucially, the aim of any kind of marine freight insurance is to protect you from escalating expenses, as well as from losing business over time, too.

What Does Marine Insurance Cover?

The average marine insurance policy covers plenty of ground. You’d normally expect a business or cargo voyage policy to cover:

  • Accidental damage to cargo
  • Marine risk – potential ship damage and deterioration
  • Capsizing and running aground
  • Hull insurance
  • Loss of goods / cargo
  • Weather or natural damage or loss
  • Cargo loading concerns
  • Theft
  • Malicious damage
  • Machinery insurance (breakdown cover, etc)
  • Third party liability
  • Physical damage in any shape or form
  • Partial loss and total loss when transporting goods

As a cargo owner or ship owner, if there is any risk to a loss of goods or to the structure and stability of your ship, it’s likely you will be able to find a policy that protects your interests.

In fact, insurance company policies will vary in terms of flexibility and scalability, meaning you may be able to add and subtract specific ‘tweaks’ to your policy as you see fit.

If you work in the marine industry, it’s also likely to will need to load on land as well as off land – meaning it’s worth researching the insurance market to see how you can cover your specific interests and intents.

What Are Some Examples of Marine Insurance?

It’s true – there are many different types of insurance policy that affect the marine industry.

No matter what you do – full shipping company operations to individual marine services, it pays to make sure you are insured against a variety of different risks.

Let’s take a look at how different types of marine insurance can provide coverage for your daily operations.

Liability Insurance

This type of marine policy will cover you should any collisions or accidents result in your liability.

For example, if you accidentally run a cargo boat or ship into rocks or even another vessel, you will expect to pay fees.

Liability insurance coverage will, variously, see that you have the financial backing to cover this potential scenario.

Providing you operate your vessels and ship cargo carefully, there are no reasons why liability insurance should ever be necessary.

However, as with other types of insurance policy, it makes sense to have a form of safety net in place should the worst case situation ever come to pass.

Third party liabilities covered by marine insurance allows for any costs you need to pay to other boat owners or cargo owners on route.

Should you be required to pay a plaintiff in court, for example, this policy will cover you as such.

What Is Marine Insurance blog post image

Freight Insurance

You’ll need to consider this type of marine insurance if you wish to protect the cost of goods that you transport.

Imagine that something happens to the stock you have on board that results in disappointment at the other end.

What if your customer’s goods are irreparably damaged or even lost (through theft or otherwise) while on route?

If the cargo you agree to ship doesn’t make its final destination for whatever reason, then it stands to reason that you will be expected to pay for the loss.

This type of marine insurance policy is also known as marine cargo insurance.

Of course, there are always likely to be individual clauses and points to keep in mind with this type of cover.

Therefore, it’s a good idea to look into what’s expected from you while in transit sailing under this policy style.

Hull / Risk Insurance

Of course, in any stretch of maritime or international trade, there is always likely to be a risk to your own hull – and your cargo vessels will need protection in case you happen upon an accident, or even a collision or malicious event that cause you severe damage, Repairing cargo ships is not a cheap business!

This type of marine insurance will, therefore, assess any damage caused to you and pay should you not be found liable for said problems.

For example, if your boat runs into oil pollution or other risk factors outside of your control, you may expect financial reparation.

Wreck removal, at the very worst, may come into play if your boat cannot be rescued at all.

Whichever marine trade you are involved in, you can trust your vessel with Velos. Start your boat insurance policy quote now by clicking on the quote button below:


Working in the shipping industry, you are unfortunately going to come across some dangers which makes marine trade insurance a must.

If you’re not operating in the US, you won’t have to worry about extensive cover such as inland marine insurance – but it’s crucial to make sure you are protected with a policy document to cover your boat, your crew, and any cargo you intend to carry from one end to another.

Ultimately, it could make all the difference between having to pay out hugely for unavoidable damage, and not at all.

Therefore, do always take time to research policies that stand to protect you.



Categories: Blog

What Kind of Boat Insurance Do I Need?

Are you considering looking into boat insurance cover?

While it may seem simple enough to arrange boat insurance coverage for any vessel, there are actually different types of boat insurance policy that cover different needs, wants and activities.

It’s important to know what different boat insurance policies offer before you take to the water.

Let’s take a look at what the main types of boat insurance policies are, and how they can support you.

Commercial Marine Boat Insurance

If you are running a vessel for business, then standard boat insurance policies won’t cover your needs and demands at sea.

For example, this type of cover includes liability insurance in the event of crew accident and ship repair.

Commercial marine insurance policies may also offer third party liability in some cases.

The right commercial boat insurance for your commercial marine operation can be tailored to the specific size of vessel you are running, too.

Inland Waterways Boat Insurance

If you’re planning to run a houseboat or canalboat down inland waterways, there are specific boat insurance costs you can pay to protect your vessel down smaller bodies of water.

For example, you could insure your boat against weather and temperature damage, accidental loss, fire, or personal accidents.

Crucially, if you’re going to run a boat down canals or rivers, you’re going to need your insurance company to cover you specifically for non-sea use.

Yacht Insurance (Pleasure Crafts)

Pleasure craft or yacht insurance coverage comes in handy if you intend to sail a personal watercraft for cruising, racing, or watersports.

In some cases, you may not need this type of boat insurance quote to cover a yacht outright. It’s worth checking specific boat insurance requirements with your chosen carrier.

In most cases, you’ll need boat insurance for these vessels that cover personal accident, fire and explosion, malicious attack, theft, third party incidents and more.

You can also add extra cover for racing, too.

Bluewater Yacht Insurance

Bluewater yacht insurance generally covers those vessels that are likely to head out into the wide blue yonder!

If you’re going to sail your yacht or pleasure vessel into the Atlantic or to explore the Pacific, this cover is going to be your best port of call.

Many carriers will protect you in international waters, meaning it’s worthwhile checking which type of yacht your prospective bluewater insurance cover protects you for.

Super Yacht Insurance

A super yacht insurance policy is likely to go further than most.

Super yachts are almost like luxury holiday homes on water – in which case, boat insurance rates can cover you for up to millions of pounds in potential claims!

These insurance policies will cover you for accidental loss, malicious attack, machinery freeze and more.

Again, the exact liability coverage will vary with the carrier you sign up with.

Marine Trade Insurance

Marine trade insurance is a little different to the third party insurance policies and cover you’ll find for standalone vessels.

These policies will protect your marine business on land as a fixture – for example, you may run a sailing club, or a marina in your local area.

What Kind of Boat Insurance Do I Need blog post image


How do boat insurances differ?

Comprehensive cover for one type of boat might not be relevant for another – for example, running a houseboat down a canal will require inland waterway insurance, which won’t cover you for a diesel powered boat, for example, in the open sea!

As a responsible boat owner, it’s mainly important to choose the adequate financial protection for your type of vessel, where you’re sailing, and who may be impacted by your activities.

Beyond that, many different types of boat insurance policy cover familiar ground.

For example, you can expect to receive protection against a potential boating accident, frost cover, accidental damage, loss of personal items, bodily injury liability, etc.

Is It a Legal Requirement to Have Boat Insurance?

In the UK, it’s not a legal requirement to run a boat.

However, boat insurance claims will protect you in the event of damage to your own boat, or to someone else’s property.

If you run a business, too, you can expect financial cover to help with salvage costs, boat management fees and other potential costs.

Ultimately, an uninsured boater is likely to be at significant risk of high fees and costs should the worst happen – an accident involving another vessel, for example, or if they lose personal items.

What’s more, comprehensive coverage will support those running businesses at sea – whose livelihoods may be impacted greatly by service interruption or unexpected costs.

Do I Need Insurance for A Small Boat?

It’s a good idea to insure any boat you intend to run, for personal or professional reasons.

While vessel insurance is not like car insurance (in that the latter is a legal requirement), insuring even a small boat will protect you against potential costs of repair and replacement should something go wrong.

If you don’t have enough actual cash to pay for potential damage, it makes sense to protect yourself with a safety net.

How much do different types of boat insurance cost?

The price you pay for different types of boat coverage will vary depending on a few different factors.

For example, the actual cash value of your boat, where you intend to sail, what you intend to use your vessel for – all will have direct impacts on the price you pay.

Consider, too, that the costs you pay will likely vary from insurance agent to insurance agent.

What’s more, add-on services such as hull insurance, additional coverage for medical payments, etc – all will likely increase the price you pay in premiums.

Whether you own a yacht, sailboat, pleasure craft, motorboat, or a commercial boat or marine trade, you can trust your vessel with Velos. Start your boat insurance policy quote now by clicking on the quote button at the top of this page.


The unfortunate reality of running any kind of boat is that you are at risk of property damage, accidents and more.

While it’s not a legal requirement to set up boat insurance, choosing the right insurance policy will ensure that you have financial recourse to recover from the worst possible case scenarios.

Take your time to look through different policies and types – and be sure to protect yourself and your interests for the years to come!



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