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Insurance case
Marine insurance
Marine insurance
The difference of Marine Insurance from other insurances is in a high degree of security and service. It is of vital importance for every shipowner to have good security in form of long-term reliable partnership and dependable service to protect his property and business.
The vessel is the shipping company's investment and usually represents big value as well as produces high daily running costs. The loss of the vessel or damage to the vessel can mean for the shipping company repair costs and/or loss of income for a shorter or longer period and without satisfactory insurance cover a loss occurred can be devastating for the business.

We are proud to note that our company is staffed by marine insurance and claims professionals with experience in all facets of marine coverage.

Our marine insurance specialists can offer the shipowners complete insurance solutions in order to safeguard their economic undertakings as well as offer a professional Claim service and management.
Hull & Machinery Insurance (H&M)
Hull & Machinery insurance is fundamental protection of a vessel against damage. The vessel, including her machinery and equipment, is insured to her full value and, depending on the chosen cover, the following risks may be indemnified:

  • Total loss (actual or constructive) or expenses that might be incurred in repairing / replacing damaged parts of hull, machinery and other equipment
  • Expenses paid for prevention, minimizing of damages or calculation of loss, in case such expenses are caused by an insured peril
  • Vessel gone missing
  • General Average contribution
  • Salvage expenses

Apart from the risks abobe Hull & Machinery policy may also include additinal cover, such as:
  • Increased Value Insurance
  • Loss of Hire
  • War Risks
  • Fuel and Stores onboard
  • Cash onboard
  • Running Down Clause
  • Fixed and Floating Objects
Increased Value Insurance
Increased Value Insurance (also called Freight Interest Insurance) is a cover designed to insure additional 20% over the Insured Value of the vessel in case of her total loss.

Compensation under Hull & Machinery Policy in the event of Total Loss is not enough to cover expenses for replacement of the vessel, which may result in a difficult situation for the Shipowner.

Increased Value Insurance makes it possible to replace the vessel and minimize economic consequences of the Total Loss. Indemnity paid under Increased Value Insurance policy will also protects the Shipowner against loss of freight.
Loss of Hire Insurance
Loss of Hire Insurance will cover loss of income as a result of a claim recoverable under Hull and Machinery Insurance.

Sum insured is agreed daily compensation that equals to the actual average income of the Shipowner. However Loss of Hire does not work in case of a total loss of the vessel, when loss of freight income may be recovered by Increased Value Insurance.
War Risks Insurance
Hull & Machinery Insurance does not normally include cases of damage to a vessel caused by hostilities, civil commotions, sabotage, terrorism, arrest, seizure etc. These risks are covered by War Risks Insurance.

War Risks Insurance is especially important for a vessel operating in dangerous waters. However Shipowner should take into consideration that this additional cover may lead to an additional premium, especially in certain regions excluded by standard Hull & Machinery policy.
Mortgagee Interest Insurance
Nowadays purchase of a vessel or a mortgage on a vessel is often impossible without involving a credit institution that in its turn is interested in protecting their investment.

Mortgagee (bank or any other financial institution), which is indicated in a Hull & Machinery policy as Co-Assured, may additionally protect their investments through Mortgagee Interest Insurance. This cover works when Insurers refuse to compensate Shipowner a loss. Such situation may occur if Shipowner violates insurance conditions, for example, breach of the policy provisions on trading territory. Sum Insured is usually an amount of loan, however, it cannot exceed insurance value of the vessel.
Shipowners' P&I
P&I Insurance (Protection & Indemnity) is intended to insure shipowner's or ship manager's third party liability that may arise from vessel operation.

Generally this cover works in cases, when Shipowner is liable for damages caused to cargo, possible injuries of crew members and passengers, pollution, expenses in regards of stowaways and refugees etc. Policy conditions and insurance premium vary depending on the type of a vessel and commercial use. P&I, as a main insurance for vessels, is required by cargo owners and other services, which makes operation of a vessel not covered by this insurance practically impossible.
Charterers' P&I Insurance
Charterers' P&I (Protection & Indemnity) is designed to protect Charterers against claims from third parties and Shipowners. Standard cover includes liability for damage to cargo and property of a third party, pollution etc.

Important part of the cover is protection of Charterers against damage to vessel's hull. This liability may arise, for example, in the course of loading / unloading operations conducted by stevedores.
RDC & FFO Risks
When such additional cover as Running Down Clause (RDC) is included into cover, it helps Shipowner in case of their liability for collision with other vessel. The Insurer will also indemnify for the losses of other Third Parties involved in an accident: passengers, cargo owners.

Fixed and Floating Objects (FFO) protects Shipowner if they are liable for damages to berth, quay, buoy, any other floating structure.

These two risks may be included in in either P&I or H&M policy, or divided between the two covers (for example in proportion ¼ & ¾).



FD&D Insurance
Although a vessel is usually fully protected, there often may occur claims that are outside the scope of a standard conditions. These claims may cause substantial financial losses to Shipowners and Charterers in the form of legal expenses resulted from disputes over charter parties, contracts and other commercial aspects.

FD&D (Freight, Demurrage & Defence) is a kind of insurance intended to help the Assured bear above mentioned legal expenses. FD&D Insurer supports Clients in protecting their business interests and continue their activities without particular financial losses.

Standard FD&D cover includes the following disputes and claims:

  • under charter parties: „off-hire", withdrawal, speed & performance, freight and laytime
  • under bills of lading, charter parties and other contract of carriage (including exercise of contractual rights)
  • over fuel or equipment supply aboard
  • with agents, stevedores, ship chandlers, brokers
  • by or against passengers, stowaways, crew
  • over ship building, purchase or sale
  • over salvage of a vessel
  • with Insurers, Classification Societies with customs, financial and other state institutions
Strike & Delay Cover Insurance
Strike & Delay Cover Insurance and other "onshore" incidents is an additional cover under Hull & Machinery Policy and very similar to Loss of Hire Insurance.

This cover allows Shipowner or Charterer to minimize their expenses when delay of the vessel is caused by unforeseen "onshore" circumstances, which are beyond Client's control. These are enumerated in the policy and usually insured events are fire, explosion, port/waterway closure, bad weather conditions, boycotts, strikes of stevedores and other port services etc

Under certain conditions it is also possible to include coverage for unexpected events onboard: strike of the crew, machinery breakdown, deviation due to illness of the crew members, quarantine etc.
Marine Builders' Risk Insurance
Building of a new vessel is always a serious project that requires substantial sums. Marine Builders' Risk Insurance enables the Client to protect themselves against loss of investments.

Insurance commences with laying of the keel, continues through the period of building, sea trials and ends with delivery of the ready vessel. Henceforth the vessel is covered by Hull & Machinery Policy.

Risks insured:
  • damage or loss (total or constructive) during the period of building, trials and putting afloat
  • pollution
  • building defects
  • General Average and salvage of the vessel
  • collision
  • expenses aimed at preventing, minimising of loss and assessment of the damage extent
Insurance premium is calculated on the basis of future vessel specification: type, measurements, contractual value, building period etc. It is very important to get the information on the shipyard experience in similar projects and any accidents that occurred earlier on the site.
Shiprepairers' Liability Insurance
Shiprepairers' Liability Insurance is aimed to cover financial liability of a shipyard that may arise from loss of or damage to a vessel in the course of repair or building works.

This insurance protects Shipbuilder in case of a damage to vessel's machinery and equipment, while she is under supervision of shipyard. The cover also includes bodily injuries to third parties.

Often Shiprepairers' Liability Insurance is obligatory according to contracts signed between shipyards and their clients.
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Yacht and motorboat insurance
Under small crafts suitable for a special yacht and motorboat insurance coverage are usually considered the ship's less then 80 GRT, with the passenger carrying capacity 12 or less person, with the main engine power not more then 55 kWt, as well as the crafts with outboard motor nothwithstanding their power, but also the sailing boats, rowing boats and other crafts without engine.

The standart insurance contract covers the following losses of the boat owner, leaser or other lawfull interest:

  • The losses and expenses due to the actual or constructive total loss of vessel, as well as the damage to hull, machinery, equipment and parts caused by following reasons:
    • fire, as onboard of the insured vessel as well as outside the vessel, the insurers also re-imburse the expenses of fire extinguishing;
    • storm, lightning, earthquake, hail, tornado etc, also the capsizing of vessel and grounding;
    • collision with other vessel or any fixed or floating object;
    • explosion onboard of insured vessel;
    • accident during launching of vessel or lifting the vessel from water;
    • accident during loading, discharge, shifting cargo or spares, fuel, equipment etc;
  • The losses due to theft or robbery of vessel, her equipment, spare parts including the losses caused by the attempt of theft or robbery;
  • The losses due to intentional act of third person (vandalism);
  • The fair and reasonable losses beared to minimize the damage, mitigation costs, survey costs.
In addition to the above mentioned risks the owner of yacht or boat may consider the possibility to protect himself with Liability Insurance, which cover the liability for losses caused to third party.

Here below a couple of examples of covered risks:
  • Pollution due to oil or fuel spillage from the insured craft;
  • Damage to the life or health of third party persons;
  • Collision damage to the vessels owned by third party;
  • Damage to third party property, such as berths, piers, fenders, buoys, port facilities.
  • wreck removal;
Surely we can assist you to chose reasonable cover of real risks and of course at fair price.
Other Marine Insurance Products
If necessary, we can also offer our assistance in concluding other special insurances such as:

  • Sales and Purchase Broker's Commission Interest Insurance
  • Repair Yard Insurance (Dry Docks Insurance)
  • Innocent Owner Insurance
  • Crew Liability Insurance
  • Towage Risks
  • General Average Disbursements
  • Fuel and Stores onboard
  • Cash onboard
© 2023 Kominsur Insurance Broker Ltd.
Kominsur / Estonia
Kominsur Kindlustusmaakler OÜ


info@kominsur.ee
+372 66 44 388
KOMINSUR / Latvia
Kominsur Kindlustusmaakler Latvijas Filiāle


riga@kominsur.lv
+371 67 582 203
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