Marine liability insurance

Marine liability insurance is a specialized form of commercial liability coverage that protects shipowners, operators, and charterers against third-party claims for bodily injury or property damage arising from maritime operations. U.S.

Federal law, such as the Jones Act (46 U.S.C. § 30104), often requires marine employers to carry this insurance to cover crew injuries during vessel employment. Typical covered incidents include collisions with other vessels, cargo loss or damage, pollution spills (e.g. oil discharge under OPA 90), and dockside accidents involving stevedores or longshoremen.

Marine liability policies exclude intentional acts but respond to negligence proven in court settlements or arbitration awards. Premiums depend on factors like gross tonnage of insured vessels, annual voyage frequency, and prior claims history; for example, large tankers may pay over $100,000 annually per vessel according to Marsh’s Global Insurance Market Index Q4 2023 report.

Standard policy limits range from $1 million up to $500 million for major shipping companies operating internationally (AIG Marine Practice Group). Insurers offering marine liability products in the U.S.

Include Chubb, Travelers, Liberty Mutual, and American Club P&I associations as reported by AM Best’s “U.S. Marine Insurance Market Segment Report” (2023).

Claims must be reported promptly–typically within 24-48 hours–to comply with policy conditions and avoid denial based on late notice provisions found in most contracts. Supplemental coverages can extend protection for wreck removal costs or fines imposed by regulatory authorities such as the U.S, as recorded by the Insurance Information Database.

Coast Guard after environmental incidents.