Marine Insurance in Cyprus in 2024. A complete guide.
Marine insurance in Cyprus
Cyprus is a well-established global maritime centre with infrastructure and services able to successfully meet the growing demands of a globalised shipping industry.
To meet the growing demand, insurance companies in Cyprus provide a wide range of marine insurance products to their international customers.
In this marine insurance guide, we will explain the main types of marine insurance and help you to find the policy that best corresponds to your company’s needs.
Table of contents
- What is marine insurance?
- Types of marine insurance
- Commercial marine insurance in Cyprus
- Marine insurance cost in Cyprus
- Affordable marine insurance in Cyprus
- Marine insurance companies
- Best marine insurance in Cyprus
- Online marine insurance in Cyprus
- Marine insurance quote in Cyprus
What is marine insurance?
In the most basic sense, marine insurance covers the damage or loss of goods or property transported from place to place (i.e., point A to point B).
The goods can be anything (i.e. products or equipment etc.), and the method of transportation can be any (i.e. sea - ship, air - aeroplane, land - car, or lorry etc.).
The destination of these goods can be within the country or between countries.
The word “marine” in this insurance product is openly deceptive since it does not only cover goods transported by sea - it also covers other modes of transportation.
We have to go back in time to understand the origin and meaning of its name.
Marine insurance meaning
Marine insurance was invented in the 17th century due to necessity, like all influential inventions, when ship owners in London needed to insure their cargo.
Most insurance companies use the terms marine insurance and marine cargo insurance interchangeably. Therefore, you should carefully read the terms before proceeding with any insurance.
Types of marine insurance
The scope of marine insurance is far-reaching and necessitates the creation of various types of insurance policies to correspond to the increasing needs of the market.
The most typical categorisation of marine insurance is between the following categories:
- Inland Marine Insurance
- Ocean Marine Insurance
Inland Marine Insurance
What is inland marine insurance?
Inland marine insurance provides a company with financial protection for business property transported on land.
This protection can include products, equipment, parts, and materials shipped “inland” by all kinds of transportation, such as automobiles, trucks and trains.
Marine coverage extends to property owned or under the possession of a business related to transportation, construction, fine art and renewable energy.
This coverage also typically protects property stored at the policyholder’s location but owned by someone else.
Inland marine insurance coverage
Inland marine insurance may help cover items typically excluded by property coverage, such as items of high value.
The coverage helps meet the costs to repair or replace covered property damaged due to covered events, including theft, fire, wind, hail or water damage.
This type of coverage may also include protection from damages or loss due to an accident or mishandling of goods or in the event of an undetermined cause of missing property.
Inland marine insurance typically covers the following:
- Property that is being transported
- Property that moves or will be moved between locations
- Computer, television, video, sound or radio equipment
- Electronics
- Bridges and radio towers
- Medical diagnostic equipment
- Party and special event equipment
- Fine art and collectables
- Trade show exhibits
- Solar panels and wind turbines
- Miscellaneous property.
Ocean Marine Insurance
What is ocean marine insurance?
Ocean marine insurance, aka ocean marine cargo insurance, is designed to help safeguard goods and merchandise onboard shipping vessels while in transit either locally (domestically) or overseas (internationally).
Marine insurance can also cover shipments across many stages of transport, including over land or by air.
Ocean marine insurance covers marine liabilities, commercial hulls, protection and indemnity.
Who is ocean marine insurance for?
Ocean marine insurance can be a vital method of protection if you source raw materials abroad, ship manufactured goods, or sell goods domestically or internationally.
Companies in industries such as manufacturing, technology, energy, construction, pharmaceuticals, food and beverage and many others rely on ocean marine insurance to protect against financial losses resulting from risks like lost or damaged shipments and cargo theft.
Marine service businesses meeting the growing demands of domestic and international trade can also benefit from marine insurance for shipbuilding, marine construction, ship repairing and supply services risks.
Various types of marine insurance
Nevertheless, there are many ways to classify marine insurance policies, e.g., according to their policies’ coverages and the contracts’ terms.
The most popular categories we are going to examine are the following:
- Floating Policy
- Voyage Policy
- Time Policy
- Named Policy
- Port Risk Policy
- Fleet Policy
- Valued Policy
- Open or Unvalued Policy
- Wager Policy
- Single Vessel Policy
- Blanket Policy
- Block Policy
- Mixed Policy
- Freight Insurance
- Hull and Machinery Insurance
- Marine Liability Insurance
Floating Policy
A floating policy is a policy that describes the insurance contract in general terms. Still, it leaves out the fine details, such as the name of the ship/s (which can be defined by an additional declaration or a policy endorsement).
Voyage Policy
A voyage policy covers marine insurance for risks to a ship’s cargo during a specific voyage.
Unlike most insurance policies, voyage policies are not time-based but expire when the ship arrives at its destination. It covers only the cargo, not the vessel that carries it.
Time Policy
A marine insurance policy valid for a specified period, most commonly valid for one year, is classified as a time policy.
Named Policy
This contract is a popular marine insurance policy choice. Named policies go by the name of the ship, which is mentioned on the insurance document.
Port Risk Policy
Port risk is coverage afforded to a vessel laid up for an extended period, normally in excess of 30 days.
Fleet Policy
In a fleet policy, several ships belonging to one owner are insured under the same contract. The insured can even cover old boats at an average rate.
Single Vessel Policy
This policy is suitable for small shipowners who have only one ship or one ship in different fleets. It covers the risk of one vessel of the insured.
Valued Policy
This type of policy is a type of coverage that places a specific value on the covered property, such as the cargo or hull of a shipping vessel.
In the event of a loss, the specified predetermined amount will be paid exactly as declared in the contract.
Unvalued or Open Policy
An unvalued or open policy is a type of marine insurance coverage that does not require the declaration of specific value on the covered property, such as the cargo or hull of a vessel.
The property’s value (i.e. freight) has to be proven following a loss by providing estimates, invoices, and other evidence.
Wager Policy
A wager policy is one where no fixed terms for reimbursements are mentioned.
If the damages are found to be worth the claim, then the reimbursements are provided by the insurance company. Otherwise, no compensation will be offered.
Blanket Policy
A blanket policy in marine insurance is the most comprehensive type since it covers many marine-related risks.
It is usually acquired by large transportation companies involved in all stages of transportation by using various means of transport (sea, air, land).
The standard coverages are hull and machinery, marine cargo, marine liability, and business interruption insurance.
Block Policy
This type of policy is a form of inland marine insurance that covers property and goods, on an all-risks basis, that are held while on the premises of others.
A block policy is commonly found in commercial insurance and is designed to protect against property damage and further protect goods shipped from businesses to customers.
Standard block policies include furriers’ block policies and jewellers’ block policies.
Mixed Policy
This type of policy is a mixture of two policies: voyage policy and time policy.
Freight Insurance
Freight insurance is a policy that gives partial or total protection against losses caused to the cargo during transit.
Hull and Machinery Insurance
Hull insurance covers the hull and torso of a shipping vessel, along with all the equipment and furniture on the ship.
A ship owner usually purchases marine hull insurance to avoid any loss to the vessel in case of mishaps.
Machinery Insurance
All the essential machinery is covered under this insurance, and in case of any operational damages, claims can be compensated (post-survey and approval by the surveyor).
Marine Liability Insurance
Liability insurance is a type of marine liability insurance for compensation claims relating to accidents involving ships and any other induced attacks.
Marine liability insurance is also known as marine public liability insurance.
Commercial marine insurance in Cyprus
Commercial marine insurance products are specialised insurance packages provided to large shipping companies.
Commercial marine insurance, otherwise known as marine business insurance, protects businesses when transporting goods, mainly via water.
The insurance covers mainly the vessel, the vessel equipment and the cargo. In addition, it provides third-party liability coverage.
This insurance is provided to organisations that work with product transportation, such as cruises, tours, fishing boat rentals, etc.
Marine insurance cost in Cyprus
Various factors affect the insurance price depending on the insurance policy you choose.
Overall, the most critical factors affecting the price of the insurance are the following:
- Types of goods.
- Types of packing.
- Country of origin.
- Country of destination.
- Transportation method (sea, air, land).
- The value of the cargo (only necessary in valued policies).
- In the case of multiple shipments, the maximum value of one average shipment.
- Where the transportation of the cargo starts and ends (e.g. port, warehouse).
- The insured’s claims history.
Affordable marine insurance in Cyprus
Pitsas Insurances is the largest provider of marine insurance policies in Cyprus and the largest provider of business insurance.
Our company cooperates with the largest international underwriters and with all local underwriters.
Due to the extent of contracts we handle and our excellent relationships with our underwriters, we can settle the most profitable deals for our clients.
In addition, the predetermined premiums set by the underwriters are further reduced by us with discounts.
Marine insurance companies
For global shipments, the largest marine insurance companies are the following:
Best marine insurance in Cyprus
As discussed throughout this guide, many types of marine insurance contracts exist.
Our experienced insurance consultants can guide you to pick the best marine insurance contract according to your needs.
Online marine insurance in Cyprus
Pitsas Insurances is the largest marine insurance provider in Cyprus.
Complete our online questionnaire, and we will quickly calculate the most profitable marine insurance offers for you.
Marine insurance quote in Cyprus
Pitsas Insurances is among the oldest insurance companies in Cyprus, operating since 1985.
We have been awarded more times locally and internationally for our quality of services than any other insurance company in Cyprus.
See here to find out more about our marine cargo insurance packages.
Complete our questionnaire to receive a personalised online quotation comparing the offers of the largest marine insurance providers.
Pitsas Insurances Team