Voyage Insurance Policy is a financial protection plan that provides coverage for goods in transit by sea. In order for a voyage policy to be valid, the vessel transporting the cargo must be in good condition and capable of making the journey and the vessel’s crew must be competent. When the insured voyage ends, so does the policy. It does not cover the ship itself, but only the specified cargo on it. This requirement exists because a voyage policy, like any insurance policy, is intended to protect against unforeseen risks, not against preventable risks. This policy covers one trip or voyage only. It also is known as “marine cargo insurance”, this policy is important for businesses who work in exports.
Voyage policies are important in the export business. It may also be called “marine cargo insurance.” It covers unexpected risks. Because it does not offer cover against avoidable risks, in order for a voyage policy to be valid, the vessel transporting the cargo must be in good condition and capable of making the journey and the vessel’s crew must be skilled. To cover those, an insured will need to purchase a separate insurance policy.
