Types and benefits of marine insurance
Hull and Machinery Insurance: Cover for loss or damage to the vessel and its equipment. The cause of loss insured against are called perils and are named. They include fire, explosion, theft, piracy, bursting of boilers, negligence of the Master and Crew and "Perils of the sea". An internationally-recognized term meaning flooding, sinking, grounding, collisions and other possible perils due to being on the water.
Protection and Indemnity Insurance Coverage: For third party liabilities arising from the ownership and operation of the vessel. The risks covered can include bodily injury to crew and passengers, pollution, wreck removal (i.e.: When a vessel sinks and blocks a harbour entrance), as well as elements of collision liability not covered in your Hull and Machinery policy.
Cargo Insurance: This type of insurance covers physical damage to, or loss of your goods whilst in transit by land, sea or air. Cargo insurance is usually provided by the means of one of three Institute Cargo Clauses ‐ A, B or C. Cargo Clause A provides the most cover with B and C giving less coverage
Navigation limits include USA and Canadian coastal waters. We are able to negotiate and agree worldwide extensions with our underwriters – ask us for details.
Marne Builders' Risks: Coverage for vessels and marine projects under construction including sea trials.
• Stevedores' Liability
• Wharfingers' Liability
• Ship Repairers' Legal Liability
• Docks, pontoons and floats
Policy Wordings:
• OWL Underwriting issues policies utilizing standard market wordings that have been tailored to your regional requirement
• Terms and Conditions can be refined to suit individual risk management needs, premium expectations and future strategic relationships
Claims Handling:
One of the differentiating factors of OWL underwriting is its local claims management with experience and authority available to respond to all claims situations.
Understanding Actual Cash Value vs. Agreed Value Policies:
In general, most marine insurance is written on industry-standard wordings, but there can be subtle differences that can have dramatic impact on claims handling.
Once such example would be an Agreed Value Policy versus an Actual Cash Value Policy. Actual Cash Value Policies pay for replacement cost less depreciation at the time of loss. Agreed Value Policies mean you and the insurance company have agreed on the value of your vessel and in the event of a total loss, you will be paid that agreed amount. Agreed Value Policies also replace old items for new in the event of a partial loss without any deduction for depreciation.
OWL's risks underwritten include:
Tugboats
Barges
Skipper Charters
Tour and Dinner Cruise Vessels
Whale Watching Vessels
Water Taxis
Guide Boats
Small Ferries
Crew Boats
Accommodation Vessels
Floating Lodges
Workboats
Aquaculture Workboats
Commercial Fishing Vessels
Sports Fishing Vessels
Pleasure Craft:
• Licensed in all Provinces
• "All Risks" wording with Canada-wide trading
• Agreed Value policies
• H&M limit up to $1.0M
• P&I limit up to $2.0M
• All classes of pleasure craft vessels considered
• Competitive rates with discounts for claims experience, anti-theft devices, Power Squadron or equivalent and Decal Programs
| Example of Actual Cash Value vs. Agreed Amount Value with $10,000 damage to a four year-old outdrive | ||
|---|---|---|
| Actual Cash Value | Agreed Amount Value | |
| Damage | $10,000 | $10,000 |
| Less Depreciation | $-4,000 | $0- |
| Less Deductible | $-500 | $-500 |
| Settlement | $5,500 | $9,500 |