If your business operation includes sending and receiving goods, it's likely that part of your insurance needs may be handled by Marine Insurance. This major and oldest type of coverage consists of Inland and Ocean Marine coverage.

Inland Marine is a varied and flexible line of business. While it shares elements that are found in Property, Automobile, Ocean Marine and Liability coverage, it also has features that are quite distinct from any of its peer lines of business. Inland Marine coverage protects a wide variety of property. It is used to protect portable commercial property such as many types of equipment used in construction as well as some types of property that are, for all intents, immovable, such as tunnels, bridges and other property that facilitates non-marine travel. For help in identifying inland marine exposures, insurance professionals use a standard called the National Association of Insurance Commissioners (NAIC). Nation-Wide Inland Marine Definition was last revised in 1976. It still acts as the major source used by states to guide their approach in recognizing what classes of property are members of the Inland Marine Family.

The oldest line of insurance is Ocean Marine. Merchants who traded goods over waterways developed the earliest concept of minimizing risk. A person sending goods along the Nile usually split-up their goods. His use of several barges meant that the loss of one shipment would not result in a total loss. Much later, coffee-loving businessmen in olde London discussed upcoming sea voyages and decided which they might partially sponsor against risk of loss.

Ocean Marine coverage protects interested parties against the financial consequences of direct damage or loss as well as from their legal liability related to owning or operating a vessel. Ocean Marine policies protect (usually larger) craft of many types such as cruisers, barges, tankers and tugboats that are used on either "blue waters" (oceans) or "brown waters" (lakes, rivers). The policies are also used to insure cargo while shipped between their destination points.

While inland marine policy language is very similar to other types of insurance, ocean marine is not. Maritime law still heavily influences the latter and its policy wording reflects that unique heritage. If you need such protection, talk to your insurance professional who should be able to provide access to a specialty insurance carrier.

COPYRIGHT: Insurance Publishing Plus, Inc. 2003

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