Those who own boats or are involved in commercial or private boating may want to invest in maritime insurance.
At its most basic level, marine insurance covers a person’s liability for their boating activities.
It will also cover any liability a boat owner has toward their crew under federal admiralty laws designed to protect crewmembers financially after they suffer an illness or injury.
Finally, marine insurance will protect against the loss of or damage to the boat itself.
Those who haul cargo may need to consider getting a separate policy to protect that cargo.
There are many different products that both commercial boaters and those who just use boats recreationally can buy to meet their coverage needs. They should consider approaching their insurance agent with questions or concerns about their coverage.
When it comes to making a claim, marine policies work like other insurance
However, marine insurance policies ultimately are binding legal contracts. Insurance carriers must meet their contractual obligations in the event of a claim.
Also, state laws in Maryland and other jurisdictions place additional obligations on insurance carriers to their customers.
For example, insurance companies must deal with their policyholders fairly when policyholders file claims. The duty of good faith generally prohibits companies from taking aggressive bargaining positions or otherwise taking advantage of their usually superior financial position.
Coverage disputes and other issues related to marine insurance can be frustrating and distressing. This is especially true when a policyholder is waiting on a legal defense against a liability claim or relies on their boat for their living and needs it repaired.
Disputes can also be complicated legally. It is important for an individual or business involved in such a dispute to understand their legal options thoroughly so they can act quickly.