By Jeremy P Stanfords
Marine-related operations often have unique insurance policies to provide protection in the event of a problem. They are typically covered with liability and commercial marine insurance for ships and for ground-based operation locations, such as docks and warehouses. One element that usually involves a separate policy or a rider is pollution liability insurance.
The Basics
Companies using marine vessels for transport of people and products are always at risk for causing pollution on the water. This can come from fuel, leaks, items lost overboard and various types of discharge into the sea. For shoreside operations, facility discharges, machinery sinking at the docks or equipment falling into the water can also be the root of contamination. There are various types of regulations from international and domestic legislative bodies regarding what can and can't be discharged into the water. Infractions involve fines, sanctions and clean-up requirements. Marine vessels and companies involved in maritime operations are required to carry various types of insurance. While some liability policies cover pollution, many do not or they don't cover enough to provide for clean-up in the event of a collision or spill. Marine pollution liability insurance typically offers protection for fishing and marine vessels such as commercial ships, crew boats, passenger carriers, floating dry docks, barges and tugboats.
Companies using marine vessels for transport of people and products are always at risk for causing pollution on the water. This can come from fuel, leaks, items lost overboard and various types of discharge into the sea. For shoreside operations, facility discharges, machinery sinking at the docks or equipment falling into the water can also be the root of contamination. There are various types of regulations from international and domestic legislative bodies regarding what can and can't be discharged into the water. Infractions involve fines, sanctions and clean-up requirements. Marine vessels and companies involved in maritime operations are required to carry various types of insurance. While some liability policies cover pollution, many do not or they don't cover enough to provide for clean-up in the event of a collision or spill. Marine pollution liability insurance typically offers protection for fishing and marine vessels such as commercial ships, crew boats, passenger carriers, floating dry docks, barges and tugboats.
What Is Covered?
Pollution is a hot topic and is closely followed by governmental agencies, worldwide organizations and consumer groups. With the number of regulations regarding pollution widespread, any infractions linked to a company's maritime operations are sure to lead to legal expenses to defend lawsuits and for the manpower needed to respond to investigators. Even where there is no wrongdoing, a company may need to spend a significant amount of money proving their innocence. There are also large fines which can jeopardize a company's ability to stay afloat. One of the most costly elements of pollution is the clean-up process. An oil spill, for example, involves removing the product from the water as well as recovering and rehabilitating the birds, animals and marine life affected by the sheen. Environmental impacts are typically covered by marine pollution liability insurance. Consulting with an insurer over the specific types and amounts needed can prevent future financial losses and the inability to continue daily business operations should there be a mishap.
Pollution is a hot topic and is closely followed by governmental agencies, worldwide organizations and consumer groups. With the number of regulations regarding pollution widespread, any infractions linked to a company's maritime operations are sure to lead to legal expenses to defend lawsuits and for the manpower needed to respond to investigators. Even where there is no wrongdoing, a company may need to spend a significant amount of money proving their innocence. There are also large fines which can jeopardize a company's ability to stay afloat. One of the most costly elements of pollution is the clean-up process. An oil spill, for example, involves removing the product from the water as well as recovering and rehabilitating the birds, animals and marine life affected by the sheen. Environmental impacts are typically covered by marine pollution liability insurance. Consulting with an insurer over the specific types and amounts needed can prevent future financial losses and the inability to continue daily business operations should there be a mishap.
Who Needs It?
Any company involved in maritime operations should carry it. While responsible owners try to avoid any environmental impact through spills, leaks and regular travel in day-to-day use of vessels, accidents do happen. Those operating equipment or machinery on the water or on the docks should consider a policy beyond general liability.
Any company involved in maritime operations should carry it. While responsible owners try to avoid any environmental impact through spills, leaks and regular travel in day-to-day use of vessels, accidents do happen. Those operating equipment or machinery on the water or on the docks should consider a policy beyond general liability.
Author is a freelance writer. For more information on commercial marine
insurance please visit http://cultd.com/
Article Source: http://EzineArticles.com/?expert=Jeremy_P_Stanfords
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