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Marine insurers provide coverage for boats and ships, assessing the likelihood of risk before creating an insurance policy. They monitor transportation companies’ performance records and work with investigators to determine who is at fault in the event of an insurance loss.
A marine insurer is a professional who provides insurance coverage for boats and ships. Workers in this job help homeowners choose the right type and amount of marine insurance coverage in order to protect assets from loss. Often marine underwriters must provide adequate coverage not only for a vessel but also for cargo transported by sea.
Marine coverage, or “underwriting”, is the oldest form of insurance in history. The job of a ship underwriter dates back to at least the 1300s, when shipping operations in Europe developed insurance policies to protect valuable assets. Today, the maritime underwriting process is regulated and standardized by law in most major countries. Modern marine underwriting is often provided with air and land insurance and is usually offered as a combined “Marine, Aviation and Transit” (MAT) coverage package.
Before a ship can be insured, a marine underwriter must assess the likelihood of risk. Underwriters use a combination of statistics and investigation to determine the chances that a particular ship will be damaged or lost. A marine specialist might inspect a cargo vessel, for example, to check that it has adequate equipment for seaworthiness and safety. Underwriters also consider statistics such as a shipping company’s financial health and the history of past events.
Insurance professionals must be aware of maritime laws and conditions in many different countries, which can directly affect insurance costs. Some sea routes take cargo ships into areas that are dangerous, open to modern piracy, or that may have adverse weather conditions. Marine underwriters must consider many different factors when evaluating a proposed insurance plan.
After a marine underwriter estimates the potential risk for a ship, an insurance policy is created. Generally, a policy for a low-risk transport company is cheaper than comparable insurance covering a high-risk transaction. An underwriter can choose to increase the insurance rate for a risky venture or deny coverage altogether if the risks are too great.
A marine insurer’s job doesn’t stop once insurance is issued. Insurance workers should continue to monitor a transportation company’s performance record in order to adjust the insurance rate according to actual events. Just as a poor driving history often causes individual insurance rates to skyrocket, a shipping company that repeatedly loses or damages goods may be forced to pay an adjusted premium.
When an insurance loss occurs, such as a vessel fire or cargo theft, insurers work with investigators to determine who is at fault. If an accidental loss is covered by the policy, the insurance company will provide a payout. A marine underwriter must closely review each incident to ensure that fraud does not occur and correct insurance payment is made.
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