Ocean Marine Insurance Law and Legal Definition

Ocean marine contracts are written to cover four major types of property interest namely, the vessel or hull, the cargo, the freight revenue to be received by the ship owner, and legal liability for negligence of the shipper or the carrier. Hull insurance covers losses to the vessel itself from specified perils. Perils insured against include collision of the ship with another ship or object, the ship sinking, capsizing, or being stranded, fire, piracy, jettisoning, barratry, resulting in damage or destruction of the ship and/or cargo. Cargo insurance may be an open contract under which shipments, both incoming and outgoing, are automatically covered for the interests of the Coverage in the event of a marine loss. Marine loss is damage or destruction of a ship's hull and the ship's cargo as a consequence of the occurrence of an insured peril. To be covered by ocean marine insurance, an act cannot involve prior knowledge by the owner of the ship or its cargo. Also, wear and tear, dampness, decay, mold, and war are excluded from the purview of ocean marine insurance.