There are two categories of Marine Insurance:
a.) Marine Cargo Insurance:
This class of insurance provides compensation to the cargo owner in the event of loss or damage to the cargo whilst in course of transit between one country and another either by sea or by air. The policy can be arranged to cover port to port only or to cover transit from warehouse in the country of origin to the warehouse in the country of destination.
b.) Marine Hull Insurance:
This class of insurance seeks to provide indemnity for the vessel owners in the event of loss or damage to the vessel. It covers the Hull (the ship or vessel), machinery and equipment. Thus, it is sometimes referred to as Hull and Machinery Insurance.