Legal Definitions - voyage policy

A voyage policy is a type of marine insurance that provides coverage for a specific journey or trip, rather than for a fixed period of time. It protects against risks that may occur during the transit of goods, a vessel, or freight from one port or location to another. Once the voyage is completed, or the insured items arrive safely at their destination, the policy's coverage typically ends.

Here are some examples to illustrate how a voyage policy works:

• Example 1: International Cargo Shipment

  A furniture manufacturer in Vietnam sells a large shipment of custom-made tables and chairs to a retailer in New York. To protect their investment, the manufacturer purchases a voyage policy. This policy specifically covers the furniture for its journey across the Pacific Ocean, from the moment it is loaded onto the cargo ship in Ho Chi Minh City until it is unloaded at the port in New York. If the shipment were to be damaged by a storm or lost due to a container falling overboard during this specific transit, the voyage policy would provide coverage.

• Example 2: Private Yacht Relocation

  An individual owns a large private yacht and decides to move it from its summer mooring in the Mediterranean Sea to a winter dock in the Caribbean. Instead of a year-round insurance policy, they opt for a voyage policy. This policy is tailored to cover the yacht exclusively for its transatlantic journey, protecting against perils like mechanical breakdown, collision, or severe weather encountered during that specific trip from Europe to the Caribbean. Once the yacht safely reaches its destination port in the Caribbean, the policy's coverage for that voyage concludes.

• Example 3: Specialized Equipment Transport

  A mining company needs to transport a massive, custom-built drilling rig from a fabrication plant in South Korea to a new mine site in Australia. Due to the high value and unique nature of the equipment, they secure a voyage policy. This policy is designed to cover the drilling rig solely for its sea transport from the Korean port to the Australian port. It would protect against potential damage during loading, unloading, or transit across the ocean, ensuring financial protection specifically for this critical, one-time movement of specialized machinery.