Most insurance lawyers don’t see this type of coverage, but for those who do, here is a little information.
Ocean marine insurance insures overseas shipments by vessel or aircraft. Ocean marine coverage can also be provided on a vessel to insure against any loss or destruction to the boat, barge, or other vessel. This is explained some in the 1965, Southern District of Texas opinion styled, Gulf Coast Trawlers, Inc. v. Resolute Insurance Co.
Coverage on the vessel usually insures against “perils of the sea” or any “marine peril.” The sinking of a vessel that occurred due to an open valve in calm waters while the vessel was docked was not a “peril of the sea” according to the 1972, Southern District of Texas opinion styled, Commercial Union Insurance of New York v. Daniels. One court explained the phrase “perils of the sea” within marine policy includes “all kinds of marine casualties” involving the sea and are distinguished from the mere act of being on the sea. This case was the 1963, Southern District of Texas opinion styled, U.S. National Bank of Galveston v. Maryland National Insurance Co.