Shipping is among the top global industries that have stood the test of time. Well, yes, technological developments have changed how business owners in this industry should be handling business processes. But, these changes have been more into smothering than heightening the challenges the shipping industry has been facing. Talking of challenges, ship owners, charterers and their direct stakeholders are the most hit when there are changes in the industry. These changes could range from the need to improve GPS/GPRS technology and RADAR systems to enhancing in-house and external communication.
All of these require significant financial input. You also need meeting global and local shipping vessel and equipment inspection maintenance requirements. And, ideally, all these still narrow down to one. And, that is how well and fast your insurer can process your claim on hull and machinery insurance or any other policy that you could have taken. For that reason, you should get professional guidance on both local and international issues that may dictate the maritime insurance you must take. Get advice on how that can also affect your insurance claims. But, why does mastering your challenges matter in marine insurance?
To guide changing insurers
Understanding the extent to which you marine-related risks may affect your maritime business is the best way to know whether to upgrade or maintain your insurance policy. You also may need to change to a different insurer should the one you have not have the financial muscle to service your claims in full and on time. Your insurer should also be in a capacity to meet all legal requirements to follow up on your insurance claims even when damages happen in international waters. For this latter case, you must confirm that the insurer has indicated in your insurance form the limits within which your insurance covers.
To guide upgrading policies
In other cases, you could need to upgrade your insurance policy. Typically, that is twofold. It either could be that the level or number of risks has increased in the shipping route that you use. And, with that, you have few-to-no chances but to upgrade your policy to cover this new wave of risks. It also could be that you want to expand your insurance coverage on current maritime threats. With this, while your premiums will increase, you are in the best place to get massive compensation on your claims. That will prove very helpful in getting your business back on its feet even after facing extensive damages.
Well, you can have a signed contract with your shipyard to provide insurance for about a year from when you received your vessel if you are starting a marine business. But, unless so, you will require exercising due diligence in finding and securing a hull and machinery insurance and any other maritime policy that is appropriate for your business. Most importantly, first master the challenges that your business faces or will face in the cause of operation. That way, you will know if your policy will provide enough cover and when to upgrade. It also will help you determine whether it is time you changes insurers.