Marine transportation coverage provides commercial hull and protection and indemnity insurance for maritime businesses such as; crew/supply boats, excursion and sightseeing vessels, ferries, pilot boats, police and fire boats, research vessels, tugs and barges and workboats.
An NVOCC is engaged in the business of freight consolidation and transportation. The NVOCC takes legal possession of shippers’ cargo and consolidates the shipments, arranges for packing, transporting and loading of shipping containers directly with an ocean common carrier.
The Ocean Shipping Reform Act of 1998 requires all OTI’s to provide proof of financial responsibility to secure their obligations to the Federal Maritime Commission as well as to third parties for their transportation related activities as an OTI. The most common instrument of financial responsibility is a surety bond. The bond, FMC Form 48, is posted in the amount of $75,000 for a domestic NVOCC and $150,000 for a foreign NVOCC. Domestic NVOCC can have additional branch offices added to their bond. Each additional branch or location will require the bond amount to be increased in $10,000 increments.