Marine insurance is not universally mandatory; however, it is often required by stakeholders involved in maritime trade, including shipping companies. Ship owners, cargo owners, and financial institutions typically insist on Marine insurance, including Marine Liability insurance, to mitigate the risks associated with marine transport. This insurance provides protection against physical loss or damage to ships, cargo, terminals, and any transport or cargo by which property is transferred. Ensuring appropriate Marine Liability insurance coverage helps safeguard investments and maintain compliance with legal and contractual obligations, especially as climate change impacts maritime operations.
