In fact, the term “underwrite,” which dates to the year 1430, originated from the practice of protecting marine voyages and the cargo they carried. A person had to write their name under the description of the shipment to show they would accept the financial risk of the marine voyage.
Today, ocean marine insurance can be used to cover a wide range of water vessels, and is useful not just for ship owners but possibly even landlocked businesses who want to protect their property being shipped on water voyages.
A variety of ocean-going vessels can be insured, including cruise liners, pleasure yachts, container ships, tugboats and more – even offshore oil rigs. Ships that travel on inland waterways may also be eligible for coverage. And this coverage generally includes losses due to heavy weather, stranding, collision, sinking, as well as fire and explosion. Even specific exclusions, like acts of war, can sometimes be bought back.
Because goods shipped by water involve loading, offloading, storage and land transport, ocean marine insurance could cover these operations as well – including the many employees who make all this happen. So everything from the marine voyage, to land transit, to the temporary land storage of a shipment might be covered by a policy.
Ocean Marine Insurance has come a long way since its origins in the fifteenth century, and it will continue to evolve and protect water voyages and cargo well into the future.