Mind Map of Marine Insurance: Ship Owners & Operators

Knowledge Series 2/2024:

Mind Map of Marine Insurance: Ship Owners & Operators

In this knowledge series, we attempt to demystify and create an aerial view of the world of marine insurance products applicable to Ship Owners and Operators.

In part 1, we identify what is at risk, in part 2 we list the potential marine insurance products and in part 3, we connect the two. 

PART 1: What is at Risk?

Vessels are at risk.
Total and partial loss of vessels are the most significant exposures for shipowners and operators. In addition, revenues can be affected partly or entirely based on the nature of loss or damage to the ship. Further, there could be potential legal liabilities that may arise and impact liquidity and cash reserves.

PART 2: Marine Insurance Products

The table below shows some of the important covers that are relevant to ship owners and operators. Please note that this list is not exhaustive, and some cover extensions are available based on the peculiarities of the trade.

PART 3: Mapping Risks with Marine Insurance Products

Having categorized what is at risk into three categories: a) Assets, b) Revenues and c) Liabilities, we can map the risks with the corresponding marine insurance products as detailed below. Some risks and products do cross boundaries and need special attention. 

Note: A set of aligned marine insurance products that could work in tandem is needed to create adequate protection for ship owners and operators. 

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For any questions related to this article or if you wish to discuss your specific insurance requirements, please get in touch with your usual contact at Howden or contact us by email on marine@howdenuae.com

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