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Marine Insurance 101

One of the most delicate modes of transportation is not just via air, but through water as well - there’s just no telling when an untoward incident can occur. Aside from natural circumstances, ships constantly face the possibilities of piracy and hijacks, especially when crossing borders. For every corporation in the industry of cargo and transportation, marine insurance is a must.

Marine insurance provides coverage and safety of ship trade and freight whilst cargo is being moved or transported. It protects transporters from the exposed risks, such as tsunamis, lightning, typhoons and storms. It also covers risks including piracy, jettison and barratry.

Depending on the plan and coverage needed, companies providing marine insurance in the Philippines offer premiums dependent on ship size and routes. The carried cargo and freight are not the only ones insured - but the whole marine vessel as well.

When applying for marine insurance, there are instances where the transporter need to apply for every shipment. Some companies, however, offer open marine insurance policies, which does not require the transporter to re-apply under certain circumstances.

It is also best to note that when applying marine insurance, the captain of the vessel must always be alert and considerate with the routes declared in the policy. Should the captain change course, any untoward incident which may occur will not be covered because of the crucial change.

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