Ocean Marine insurance has been around for a long time. A very, very long time.

One of the first insurance lines to come onto the scene, the coverage developed in the 18th and 19th centuries as maritime trade expanded. Marine insurance companies formed to provide standardized policies with a broad array of marine coverages, including for damage to ships and cargo and other perils of the sea. As the years went by, Ocean Marine insurance evolved along with the advancement of technology and transportation.

"Today, Ocean Marine insurance covers a wide range of risks from commercial to personal, including for cargo ships, super yachts, marinas and yacht clubs, boats, boat rentals, tugs and barges, casino boats, and others," explains Ben Brandriet, RPS underwriter and producer, Ocean Marine.

What Does Ocean Marine Insurance Cover?

Here's a look at some of the main Ocean Marine coverages:

  • Hull (Vessel) insurance covers physical damage to or loss of the vessel itself, including damage from collision, accidents, fires, storms, sinking and other perils. Hull insurance typically covers the hull, machinery, equipment and other ship parts.
  • Protection and Indemnity (P&I) insurance covers liabilities arising from the operation of a vessel, including for bodily injury or death of crew members, passengers or third parties, as well as damage to third-party property. It also covers wreck cleanup and removal. Excess coverage is also available for boats that require high limits.
  • Cargo insurance covers goods transported by sea, protecting against damage, loss, theft, or other perils that may occur during transit, whether by sea, land, or air. Cargo insurance can be tailored to the specific needs of the cargo and the shipping route and is typically purchased by the owner of the goods.
  • Yacht insurance covers pleasure boats, sailboats and yachts, and includes protection for the hull, liability, personal property on board and other related risks.

Other Ocean Marine coverages include Terminal Operators Legal Liability (Stevedores and Wharfingers), Marina Operators Legal Liability, Charterers Liability, Jones Act, and Excess Programs, including Bumbershoot and Follow Form Excess.

Underwriting Ocean Marine Insurance

Age may be nothing but a number, but the age of a boat is a critical underwriting factor when looking at a risk.

"Typically, carriers will require a Condition and Valuation (C&V) survey be performed by a third-party professional for submissions for boats older than five years and thereafter every three years," says Brandriet. "The boat surveyor will inspect the boat's hull, mechanical system, electrical system, riggings, safety equipment, security, etc."

On the flip side, it's important for new boats with updated and advanced technology to have coverage that reflects the value of these expensive features.

"Underwriters will also look at the material of the hull — whether it's fiberglass, steel, or wood — but the age of the hull is what principally impacts the cost of insurance," explains Brandriet.

Charting the Course for New Risks

Maritime technology continues to evolve, and Ocean Marine insurance continues to expand to provide coverage for new risks.

"For example, underwater drones controlled remotely require coverage for property damage," says Brandriet.

In addition, some engine manufacturers are starting to convert their engines to electric-powered from gas, similar to electric vehicles like Tesla or BMW, which requires updated coverage. Hovercraft and other personal watercraft also require coverage.

It's Smooth Sailing with RPS

From yachts to tugs to barges and other oceangoing vessels, RPS Marine offers the expertise, relationships, and ability to quote, bind, and place a wide range of Ocean Marine accounts — so your customers aren't left high and dry.

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