Legal Definitions - assecuration

ASSECURATION

Assecuration refers to marine insurance, which is a type of insurance that covers ships, cargo, and other related property against loss or damage during transportation by sea. It is a form of risk management that protects the interests of ship owners, cargo owners, and other parties involved in maritime trade.

Example 1: A shipping company purchases assecuration to protect their cargo from damage or loss during transportation across the ocean.

Example 2: A fisherman buys assecuration to cover the cost of repairing or replacing their boat if it is damaged or lost at sea.

These examples illustrate how assecuration is used to protect against the risks associated with maritime trade. In example 1, the shipping company is protecting their investment in the cargo they are transporting, while in example 2, the fisherman is protecting their livelihood by ensuring they can continue to work even if their boat is damaged or lost.