Legal Definitions - voyage insurance

Voyage insurance is a specific type of marine insurance designed to protect a ship, its cargo, or both, for a single, defined journey from one port to another. Unlike policies that cover a vessel for a period of time, voyage insurance provides financial protection only for the duration of that particular trip. It covers potential losses or damages that might occur during the specified voyage, such as accidents, theft, or natural disasters at sea. Once the vessel safely reaches its destination, the coverage for that specific voyage typically concludes.

Here are some examples to illustrate how voyage insurance works:

• Imagine a company that manufactures high-end bicycles in Italy and needs to ship a large order to a distributor in New York. To safeguard their investment, the company purchases voyage insurance specifically for the shipment traveling from the port of Genoa, Italy, to the port of New York, USA. If the cargo is damaged due to a storm or an unforeseen incident during this particular transatlantic journey, the insurance policy would cover the financial loss for that specific trip.

• Consider a specialized shipping firm contracted to transport a unique, oversized piece of industrial equipment from a factory in Germany to a construction site in Brazil. Since this is a one-off, high-value delivery, the shipping firm opts for voyage insurance to cover the vessel and the valuable machinery for the entire route from Hamburg to Rio de Janeiro. This ensures that any damage or loss occurring during this singular, planned transit is financially protected.

• An individual is relocating their entire household from Vancouver, Canada, to Auckland, New Zealand, and decides to ship their furniture and personal effects by sea. They purchase voyage insurance to protect their belongings exclusively for the duration of the ocean transit from the Canadian port to the New Zealand port. This coverage would protect against risks like container damage or loss during the specific journey across the Pacific Ocean, ending once their possessions arrive safely in Auckland.