South Carolina Adjuster Licensing Exam 2025 – 400 Free Practice Questions to Pass the Exam

Hull insurance is designed specifically to cover the physical damage to the ship itself in Ocean Marine Insurance. This type of policy protects the vessel against various risks, including damage from collisions, grounding, sinking, fire, and other maritime hazards. It plays a crucial role in ensuring that ship owners can recover the costs associated with repairs or total loss, thereby safeguarding their investment in the vessel.

Cargo insurance, while important, focuses on covering the goods being transported by the ship rather than the vessel itself. Liability insurance addresses the potential legal responsibilities that a ship owner may have, such as damage caused to third parties or other ships, but it does not cover the ship's own physical damages. Freight insurance protects the shipper's expenses associated with freight costs, which are distinct from issues related to the vessel's integrity. In contrast, hull insurance directly pertains to the coverage needed for the ship's physical state.