Inland and Ocean Marine Insurance Ocean Marine is a form of commercial property coverage for imports and exports that are being transported over waterways (oceans). These policies protect hulls and the cargo aboard the ship. Ocean marine insurance covers four basic risks:

1. Hulls are protected by hull insurance. This protects the owner against loss to the ship itself. 2. Cargo insurance is written separately from insurance on the ship and protects the owner of the cargo for loss to all shipments which may be damaged or destroyed. 3. Freight insurance indemnifies the owner for loss of income experienced when a ship is lost. 4. Protection and indemnity insurance provides liability coverage for the owner of a ship for injury or property damage to others due to the negligence of the owner and/or crew.

Ocean marine insurance generally provides open-peril protection. The common perils insured against include perils of the sea such as damage caused by waves, sinking, stranding on reefs or rocks, collision, lightning damage, fire damage, theft by pirates, jettison and barratry.

Various implied warranties apply to ocean marine insurance and must be observed. The following are considered to be the most important implied warranties: • Seaworthiness • Condition of Cargo • Legality • No Deviation in Voyage Exclusions to Open Peril Coverage The typical exclusions are losses caused by war, strikes, riots, civil commotion, decay, deterioration, and inherent vice.

Inland Marine Insurance was first developed as an extension of Ocean Marine coverage, to provide coverage for cargo traveling over land, instead of by sea. To help identify which risks would be covered under Inland and Ocean Marine, the insurance industry in our country developed the nationwide definitions of coverage.

The definition lists six categories of eligible risks under Marine insurance: 1. Imports 2. Exports 3. Domestic shipments 4. Instrumentalities of Transportation or Communication 5. Commercial Property Floater Risks 6. Personal Property Floater Risks

Domestic shipments Transportation policies are also referred to as transit insurance. They cover owners of property against damage to their property while in the course of transit by carrier. A shipper's form is available to cover property in transit that may be damaged in circumstances under which the carrier has no legal obligation to pay the shipper's loss. A trucker or carrier form insures a trucker against legal liability for damage to property of others that the trucker is transporting for hire. An owner form insures property owners against damage to their own property while being transported on their own trucks.

A combination trucker's and owner's form is also available which combines the protection provided by each of those forms. Another form of transportation coverage involves a trip transit policy which is available for single shipments of merchandise, clothing, furniture or livestock while in transit by motor truck or other covered type of transportation.

Instrumentalities of Transportation & Communication This coverage provides for damage to bridges, tunnels, dams, pipelines, piers, docks, radio and TV towers. While this property is not portable, it does have a direct connection with transportation and is subject to many of the same perils. Bailee Forms A bailment is the delivery of property, by the owner, to someone else to be held by the bailee for some special purpose, and then returned to the owner. If the property is damaged while in the custody of the bailee, the bailee will be held liable for damages.

Equipment Floaters: • Contractor’s Equipment Coverage Form – A form designed to insure various types of construction equipment used by contractors. The type of equipment used by contractors varies with the nature of the project on which the contractor is working. • Commercial Articles Coverage Form – may be used to insure the interests of the owner of commercial cameras, musical instruments and related equipment. • Physicians and Surgeons Equipment Form – covers equipment owned by those in the medical, surgical, or dental professions on an all risk basis both on and off the premises.

Valuable Papers and Records Form Provides coverage for inscribed, written, or printed documents, manuscripts or records, including abstracts, books, deeds, drawings, films, maps or mortgages. Installation Coverage Form Covers property sold by the insured that must be transported to another location and installed before the purchaser accepts it. In some cases, this can take weeks or even months to complete. Machinery, equipment, building materials and supplies are the types of property considered installation risks and may consist of elevators, air conditioning equipment, boilers and similar building equipment.

Sign Coverage Form A special form exists for insuring the value of signs, including neon, fluorescent, automatic or mechanical signs. Electronic Data Processing (EDP) Form An increasingly important coverage today is insurance for electronic data processing equipment and media. This coverage can be very important since it covers both hardware and software, which are often sizable investments to a business.

Jewelers Block Form Is used to insure high-end jewelry stores. It covers the insured's merchandise held for sale, property in showcases and customers' property. An extension of coverage is provided for theft damage to buildings. The jewelers block form also covers loss of covered property from show windows at the premises from theft or attempted theft involving the smashing or cutting of the show windows. It will also cover the loss of property by theft from locked safes or vaults at the premises, when the safes or vaults have been broken into.

Aviation Insurance Property and liability insurance may be purchased for aviation exposures. Aircraft hull insurance is available to cover direct total loss to aircraft. Coverage is provided for loss occurring on the ground or in the air. Ground coverage includes: • Hangar fire • Damage by windstorm • Theft when the aircraft is not in motion Aircraft liability provides similar protection as that covered by commercial automobile liability. An insured may choose coverage for the bodily injury of passengers or may exclude passengers.

Additional types of aviation insurance include medical payments, products and cargo liability, premises and operations liability of an airport and others. Hangar keeper's liability is a form of bailee coverage that will protect an airport that is legally responsible for damage to an aircraft owned by another person while it is kept in the airport hangar.

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