If you own a boat, it’s important to take proper precautions to ensure your cargo is protected. These include taking the proper precautions to protect your cargo, limiting your liability, and notifying your insurer of possible incidents. This article will address these issues and more. For additional information, you can also contact a maritime attorney. They will be able to review your policy and contract language and suggest ways to protect your assets.
Protection of cargo
While you may be aware of the importance of marine business insurance, you might not know that there are many reasons why this is actually vital. Regardless of whether you’re shipping a single item or a full container, the risk of loss and damage to goods is real. During hurricane season, especially, it’s important to protect your marine cargo from damage or loss caused by stormy weather. Luckily, there are plenty of ways to reduce this risk, including proper packaging.
In addition to physical damage, marine cargo insurance also covers you in case of a delay in delivery. Depending on your policy, you may receive coverage for up to thirty days after the storm. While this might seem like a long time, hurricanes can cause delays in the delivery of cargo, so extended coverage may be worthwhile. A canny captain will take your cargo to the “low side” of the storm, where the waves are smaller.
Precautions to take to protect your boat
As hurricane season approaches, it’s important for boat owners to prepare. During peak season, June 1 through September 30, storm surges can increase by six feet. Boats should be tied down to a safe haven ashore, anchored with heavy lines, and bilges should be pumped. The more fenders a boat has, the better. Boat owners should also consider moving their boats to a safe haven – either in a secure pier, or in a hurricane hole – to protect them from storm surges.
To prevent any damage from wind, lightning, and other dangerous elements, boat owners should secure their boat by shutting down through hulls and bilges. Also, close ports and drains to prevent water from accumulating. Propane tanks should be turned off. It is also crucial to secure important documents. It’s best to leave early for a safe harbor. If you must leave the area, be sure to make use of a fast boat and plan to travel long distances during rough weather. Boat rescue efforts are impossible, and the last thing you want to do is risk your boat.
Limitation of liability
In most cases, a limitation of liability action will be filed by the ship owner after a hurricane strikes. In such a case, the owner will seek to be relieved of liability by claiming limitation of liability under the shipowners’ limitation of liability act, 46 U.S.C. SSSS 30501 et seq. The limitation of liability act limits the shipowner’s liability to the post-casualty value of the vessel and any pending freight.
All companies operating within the marine insurance field should take note of and follow compliance hurricane requirements. These policies often require the company to offer a deductible during hurricane season. They should also provide clear notice of when this deductible applies. Most insurance policies require that policyholders understand the hurricane deductibles and wind/hail triggers. They should also keep track of the requirements from the United States Coast and have their hurricane plans in place.