The insurance covers the shipowner's civil liability for damage caused to third parties as a result of the operation of a ship, barge, yacht, pleasure boat or other water transport. This means that if losses are caused to third parties during the operation of your watercraft - for example, damage to their property or injury to their health - the insurance will cover these losses.

The insurance contract is usually concluded for a fixed term. In practice, most often the term of the policy is one calendar year, but other options are possible depending on the needs of the shipowner. This allows to provide permanent protection against risks associated with the operation of water transport throughout the year.

What the insurance covers:

• Losses arising from cargo liability: This includes financial losses that may occur due to loss or damage to the cargo being carried during transportation.
• Losses arising from shipowner's liability in ship collision: If your vessel collides with other vessels or floating/stationary objects, the insurance covers the damage caused as a result of this collision.
• Costs associated with the prevention of sudden and unforeseen pollution: This includes the costs of measures to prevent or remedy the effects of pollution caused by an accident involving a ship.
• Shipwreck salvage costs: The insurance covers the costs associated with operations to lift and remove shipwrecks after an accident.
• Legal and court costs: Includes the costs of attorneys' fees and participation in litigation related to an insured event.
• Expert appraisal costs: Insurance covers the cost of expert evaluations necessary to determine the extent of damage or condition of the vessel.
• Fines and penalties: Covers fines and penalties that may be imposed on the shipowner as a result of a violation of rules or regulations.

Factors affecting the cost of the policy:

• Sum insured (limit of liability): The total limit set in the policy determines the maximum amount for which insurance coverage is provided. The higher this limit, the higher the cost of the policy will be.
• Sub-limits for specific types of losses: Additional limits applied to specific types of losses also affect the price of insurance. This may include limits for different types of loss, such as collision damage or loss of cargo.
• Year of construction of the vessel: The age of the vessel affects the price of the policy, as older vessels may require more maintenance and carry more risks.
• Type of vessel: Different types of vessels - dry cargo, reefer, oil tankers, passenger vessels, pleasure boats, etc. - have different risk levels, which also affects the cost of the policy. - have different levels of risk, which also affects the cost of insurance.
• Country of registration (flag): The place of registration of the vessel determines the legal and insurance requirements, which can affect the price of the policy.
• Classification society (technical register): The organization involved in the technical inspection and certification of the vessel can affect the price of the policy, as different societies have their own standards and requirements.
• Number and nationality of crew members: The number of crew members and their nationality are also taken into account when calculating the cost, as this may affect the risks and liability.
• Type of cargo carried: Cargo characteristics such as dangerous or high value cargoes affect the calculation of the policy price due to the increased risk.
• Technical characteristics of the vessel: The size of the vessel, gross registered tonnage (GRT) and other technical parameters are taken into account when calculating the premium.
• Technical condition of the vessel: The general condition of the vessel, including the need for pre-insurance inspection at the expense of the shipowner, affects the cost of the policy.
• Number of vessels insured: If a shipowner insures multiple vessels, this can change the total cost of the policy, often offering discounts for quantity.
• Types of losses covered by the policy: The wider the range of coverage, the higher the cost of the policy. Including different types of losses in a policy affects its price.
• Territorial restrictions for traveling: The geographical areas in which a vessel can voyage may change the cost of the policy.
• Policy deductible: The amount of deductible that the shipowner is willing to cover on their own in the event of an insured event affects the premium. The higher the deductible, the lower the cost of the policy.
• History of previous losses: The shipowner's claims and loss history affects the cost of the policy. The presence of frequent or significant losses may result in a higher premium.